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Filed: Citizen (apr) Country: Canada
Timeline
Posted

So i filed Form #T2062 within 10 days of me receiving my disbursement to the Charlottetown tax office. I got a call almost a month ago which hubby failed to tell me about. I just called the tax office this morning after listening to the message on our voicemail, and the lady seemed confused. T2062 (which I was told to fill out) deals primarily with land, bonds, and those kind of inheritances, and not really cash. She couldn't understand why the Bank didn't tax the money coming out of the estate- she said "there are laws about that kinda stuff".. So I sicked the CRA lady on the inept worker at the Royal Bank that I "dealt" with.. This lady was a "Royal" pain in the butt for my entire family- would you believe she disbursed checks that BOUNCED for my Grandmother's estate? *sigh.. so frustrating..

I explained to the lady from CRA what I was trying to do - trying NOT to get the $1,000.00 fine and to notify CRA that I FULLY intend to pay taxes on the money when the T4A is issued in the new year.

Anyway, it's all good, the lady from CRA was helpful but very confused as to what to do next.. hopefully I'll have more information soon. Sure helps anyone else who's in a similar situation down the road.

AOS:

2007-02-22: Sent AOS /EAD

2007-03-06 : NOA1 AOS /EAD

2007-03-28: Transferred to CSC

2007-05-17: EAD Card Production Ordered

2007-05-21: I485 Approved

2007-05-24: EAD Card Received

2007-06-01: Green Card Received!!

Removal of Conditions:

2009-02-27: Sent I-751

2009-03-07: NOA I-751

2009-03-31: Biometrics Appt. Hartford

2009-07-21: Touched (first time since biometrics) Perhaps address change?

2009-07-28: Approved at VSC

2009-08-25: Received card in the mail

Naturalization

2012-08-20: Submitted N-400

2013-01-18: Became Citizen

Posted (edited)

Sure appreciate the updates E. They make it more complicated than they should. I would have thought that it would have something to do with the $$ amount of the money involved. You're talking about $1000.00? Now, if you were in Canada, and you received money from a RIF, or RRSP, the money would be deducted from the source, before you ever saw it. So, I don't know that you'd have to report the money to be taxed on again would you? You're going to fill out a tax form next year for an income of $1000.00? Sorry, maybe the $1000.00 is from the account, and not the RIF. I may have it wrong.

Edited by Carlawarla
carlahmsb4.gif
Filed: Citizen (apr) Country: Canada
Timeline
Posted (edited)
Sure appreciate the updates E. They make it more complicated than they should. I would have thought that it would have something to do with the $$ amount of the money involved. You're talking about $1000.00? This isn't "inheritance tax" is it?

It does depend on the amount of $ you receive. This money (RIF) money was never put into the estate to my knowledge, it was willed to us and we had the choice to take the money or roll it into another retirement product (which no one did), but because no one had ever paid taxes on this money it had to be taxed. Because the amount I (a non resident of Canada )received (under 10K) was low they figured it would be taxed around 18%.. it's an equation that is a bit complicated - something like a percentage and then a percentage of that percentage again - WHY didn't I write that down. Anyway, the international tax office knew right away what the amount would be, so there are rules out there governing it. So to my knowledge this is standard income tax on the amount I was given - T4A stuff, not necessarily "inheritance tax" per se. I could be out to lunch but that's how i'm understanding it :thumbs:

Edited by Emancipation

AOS:

2007-02-22: Sent AOS /EAD

2007-03-06 : NOA1 AOS /EAD

2007-03-28: Transferred to CSC

2007-05-17: EAD Card Production Ordered

2007-05-21: I485 Approved

2007-05-24: EAD Card Received

2007-06-01: Green Card Received!!

Removal of Conditions:

2009-02-27: Sent I-751

2009-03-07: NOA I-751

2009-03-31: Biometrics Appt. Hartford

2009-07-21: Touched (first time since biometrics) Perhaps address change?

2009-07-28: Approved at VSC

2009-08-25: Received card in the mail

Naturalization

2012-08-20: Submitted N-400

2013-01-18: Became Citizen

Posted
Sure appreciate the updates E. They make it more complicated than they should. I would have thought that it would have something to do with the $$ amount of the money involved. You're talking about $1000.00? This isn't "inheritance tax" is it?

It does depend on the amount of $ you receive. This money (RIF) money was never put into the estate to my knowledge, it was willed to us and we had the choice to take the money or roll it into another retirement product (which no one did), but because no one had ever paid taxes on this money it had to be taxed. Because the amount I (a non resident of Canada )received (under 10K) was low they figured it would be taxed around 18%.. it's an equation that is a bit complicated - something like a percentage and then a percentage of that percentage again - WHY didn't I write that down. Anyway, the international tax office knew right away what the amount would be, so there are rules out there governing it. So to my knowledge this is standard income tax on the amount I was given - T4A stuff, not necessarily "inheritance tax" per se. I could be out to lunch but that's how i'm understanding it :thumbs:

Okay, that explains it better, thanks. I'm wondering in future, for others, if at all possible, given you're in the US and are therefore taxed different, if it wouldn't be adventageous for your Canadian based family to take your share and pay the reduced tax on the money. Personally, I think that the Royal Bank will end up having to just send you a slip that you'll file with your taxes next year and you'll pay the tax that way. I guess I'm likening it to my EI. I have three months worth from early 2008 before my claim was finished. CRA advised that I wouldn't submit an Income Tax form for 2008 unless I received any other monies they didn't know about because they'd already taken their share off the EI before I got it. Therefore, I've paid the taxes on the money I received from Canada.

carlahmsb4.gif
Filed: Citizen (apr) Country: Canada
Timeline
Posted
Okay, that explains it better, thanks. I'm wondering in future, for others, if at all possible, given you're in the US and are therefore taxed different, if it wouldn't be adventageous for your Canadian based family to take your share and pay the reduced tax on the money. Personally, I think that the Royal Bank will end up having to just send you a slip that you'll file with your taxes next year and you'll pay the tax that way. I guess I'm likening it to my EI. I have three months worth from early 2008 before my claim was finished. CRA advised that I wouldn't submit an Income Tax form for 2008 unless I received any other monies they didn't know about because they'd already taken their share off the EI before I got it. Therefore, I've paid the taxes on the money I received from Canada.

Yes well the whole issue of this money is that the Bank didn't take anything out in taxes. for my family back in Canada - that's no big deal because they will have to file a tax return as residents, the only one it really made a difference to was me as a non-resident, because CRA is afraid that I won't ever file a tax return on the money and try to get it "tax free". So you have to file a form #T2062 that states that you know about the debt owing to the CDN gov. and as soon as you receive your T4a from the bank you will pay back the CDN gov the amount owed to them. It's a certificate of compliance I believe, and if you don't apply for that certificate if you owe taxes as a non resident for these types of circumstances you can be fined. UGH.. I didn't even know that as the Bank was useless in helping me with the implications of my Grandmie's money, and the woman who actually was in charge of disbursing the estate completely messed up at every turn of the process.

AOS:

2007-02-22: Sent AOS /EAD

2007-03-06 : NOA1 AOS /EAD

2007-03-28: Transferred to CSC

2007-05-17: EAD Card Production Ordered

2007-05-21: I485 Approved

2007-05-24: EAD Card Received

2007-06-01: Green Card Received!!

Removal of Conditions:

2009-02-27: Sent I-751

2009-03-07: NOA I-751

2009-03-31: Biometrics Appt. Hartford

2009-07-21: Touched (first time since biometrics) Perhaps address change?

2009-07-28: Approved at VSC

2009-08-25: Received card in the mail

Naturalization

2012-08-20: Submitted N-400

2013-01-18: Became Citizen

  • 3 weeks later...
Filed: Citizen (apr) Country: Canada
Timeline
Posted

So I talked to CRA this am and the nice lady told me that it was going to be filed under my Grandmie's last tax return for 2008 and that the bank would issue an information slip to the estate and they would show the monies on Grandmie's final tax return not on our individual tax returns. I'm not sure why the bank then had to have our info (SSN & Addresses) on file or what the entire deal was there, but the CRA told me that I had no tax responsibility in this case. She had looked into my Grandmie's DOD and talked to the bank and that's what she had come to the conclusion of in regards to the money.

I am a little stunned as the Bank said for SURE it was up to each person to declare the taxes, but she did contact the bank and I was wondering why the bank didn't take taxes off in the beginning, so this makes some sense. Sigh.. so I guess all this drama and nothing really to report :)

Okay, that explains it better, thanks. I'm wondering in future, for others, if at all possible, given you're in the US and are therefore taxed different, if it wouldn't be adventageous for your Canadian based family to take your share and pay the reduced tax on the money.

This is a good idea, but you'd have to remember to have the wills changed, and have the beneficiaries listed excluding you... in this case I was on the will and in the beneficiaries.. so it had to come to me.

AOS:

2007-02-22: Sent AOS /EAD

2007-03-06 : NOA1 AOS /EAD

2007-03-28: Transferred to CSC

2007-05-17: EAD Card Production Ordered

2007-05-21: I485 Approved

2007-05-24: EAD Card Received

2007-06-01: Green Card Received!!

Removal of Conditions:

2009-02-27: Sent I-751

2009-03-07: NOA I-751

2009-03-31: Biometrics Appt. Hartford

2009-07-21: Touched (first time since biometrics) Perhaps address change?

2009-07-28: Approved at VSC

2009-08-25: Received card in the mail

Naturalization

2012-08-20: Submitted N-400

2013-01-18: Became Citizen

 
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