# What is the TPS/TVH for July 2011/June 2012?? They can't calculate my credit...



## youtoo (Apr 19, 2011)

I just got a letter from the government saying that the cannot calculate my credit for the TPS/TVH for the period July 2011/June 2010.

I came to Canada last year, mid-year, so they ask me how much I made anywhere else during the first half of 2010.

Is this related to the fact I haven't got my tax return from Quebec?? I got my tax return from the federal government but still waiting for Quebec...

What confuses me is the period (July to June). I thought here in Canada the tax period was from January to December...

Sorry for the newbie questions


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## OhGreatGuru (May 24, 2009)

TPS/TVH is the french equivalent of GST/HST. The amount of the credit is based on your annual income as reported in your tax return but it is payable in quarterly instalments from July to June in the year following the tax year in question.. See http://www.cra-arc.gc.ca/bnfts/gsthst/fq_pymnts-eng.html#q7

You better call and ask them why they can't calculate it. Maybe there is some problem with processing your provincial return?


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## youtoo (Apr 19, 2011)

So this, from what I get from the report I got when I did my taxes declaration, is independent from the tax return from Quebec.

So, the federal part gives back the taxes (that I already got long time ago) and this TPS/TVH credit... is that right?

They wanna know what was my income in 2010 before July, which is when I arrived in Canada. I guess I'm gonna send them the copies of my paychecks I got from January 2010 to July 2010 and I hope that should be good enough for them to figure out my TPS/TVH credit...

Thanks for the answer btw.


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## financialnoob (Feb 26, 2011)

We got a similar letter relating to GST/HST. It's because the credit is based on your annual income. If you are a recent immigrant like my wife was, they want to know the world income for the ENTIRE year, not just what you made in Canada in the time you were here. 

We had to do it last year as well and simply sent a letter and declared what her world income was, converted to Canadian dollars.


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## youtoo (Apr 19, 2011)

just a letter stating a number is ok? they don't need any proof?

I mean, I have no problem showing my real income, wasn't that much, it just would be faster to send them a letter, instead of getting the paychecks from home...


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## financialnoob (Feb 26, 2011)

I'm not sure exactly what your letter requested, might differ, so I'd double-check that first.

We received a request last year for the 2009 tax year, and on that one a signed letter was sufficient. A month ago, we got a similar letter asking for info for tax year 2010 as that was the year my wife immigrated. 

I wrote another signed letter converting to Canadian as requested, but this time attached copies of the W-2 (US equivalent of T4) as well as a copy of her T4. Just sent it off the other day so can't confirm if it was sufficient enough, but I'm not too concerned. I believe they have a tax agreement with the US so they can verify anyways.


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## youtoo (Apr 19, 2011)

Now they have my info... should I expect a quarterly payment?

I already got the tax refund from the fed government and the one from Quebec.

Is there any other refund to be expected? I say it because they mention the July'11 to June'12 amount of the GST/HSTC entitled to...


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## OhGreatGuru (May 24, 2009)

youtoo said:


> Now they have my info... should I expect a quarterly payment?
> 
> ..


Please read the CRA document I previously referred you to. What part of "quarterly instalments" didn't you understand?

http://www.cra-arc.gc.ca/bnfts/gsthst/fq_pymnts-eng.html#q7


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## youtoo (Apr 19, 2011)

Well, I read it, but I am still a bit confused.

In my profile they say "Our records indicate that no payment will be issued."

That's why I'm asking if I still should expect anything... Is because I don't have kids?? LOL


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## Karen (Jul 24, 2010)

Perhaps your total annual income was too high to be eligible for a GST/HST rebate? I don't know what the limit is, but I know it depends on the combined net annual income of you and your spouse.


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## youtoo (Apr 19, 2011)

It was 20K, I arrived to Canada mid-year.


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## Karen (Jul 24, 2010)

Was that $20K the combined net income of you and your spouse for the whole year, not just your Canadian income?


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## youtoo (Apr 19, 2011)

It was just me in Canada. I have no spouse nor kids.


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## OhGreatGuru (May 24, 2009)

I have looked through the CRA site and they are remarkably obcure about how they calculate eligibility for someone who has become a resident only part way through the year. Logically however, they must prorate it somehow. The GST/HST credit is supposed to be a benefit for GST/HST paid by low-income earners during the tax year. If you arrived in mid-year, you didn't pay any GST/HST for the first half of the year. If they did not pro-rate it someone could arrive on December 31 and claim a rebate for the whole year.


So your 20K income for 6 months may be equivalent to a 40 K income for a year. If you plug that into their sample calculations you will end up with 0 rebate. I suspect they do a more detailed calculation, with a monthly credit being calculated and multiplied by the number of months of residency, but it comes to the same thing.

*PS. It may be even more complicated than that. I see from Form RC151 that they ask new residents to report their foreign Income:
a) in the year they became a resident; 
b) in the year previous to becoming a resident; and
c) two years before becoming a resident.

So how they fit this into their calculations is beyond me.*


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## youtoo (Apr 19, 2011)

I see, thanks for the explanation OhGreatGuru.

I think I won't expect anything back...


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