# 2 Jobs in Canada + trading question



## cbtshare (Nov 12, 2016)

Hello all,

If I have 2 jobs in Canada(full time) and received 2 t4 slips , do I have to input both of them since the company already paid taxes on my salary? 

Also 

If I am not a citizen or PR just a worker, moved money I worked outside of Canada into a trading account and made gains, do I have to declare it?(how will they know, I dont plan to bring the money back into Canada)


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## Joe Black (Aug 3, 2015)

cbtshare said:


> Hello all,
> 
> If I have 2 jobs in Canada(full time) and received 2 t4 slips , do I have to input both of them since the company already paid taxes on my salary?
> 
> ...


Regarding T4's, yes you have to combine them all. There's a good chance it will be in your favour anyways, as you may get a bigger return.


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## Spudd (Oct 11, 2011)

I am guessing you're a resident in Canada even though you're not a permanent resident (i.e. you live here)? If so, you pay tax on your worldwide income, but your taxes will be reduced by any tax you paid in your home country.


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## Eclectic12 (Oct 20, 2010)

cbtshare said:


> ... If I have 2 jobs in Canada(full time) and received 2 t4 slips , do I have to input both of them since the company already paid taxes on my salary?


Yes.

You most likely *really* want to anyway. Both companies have likely been charging CPP & EI so by filing both T4's, the over payment will be reconciled so that either taxes owing will be reduced or more likely, there will be a refund. 

Then too, both companies are telling CRA about the T4's so if you skip one, expect penalties and interest to be charged when CRA flags it.




cbtshare said:


> If I am not a citizen or PR just a worker, moved money I worked outside of Canada into a trading account and made gains, do I have to declare it?(how will they know, I dont plan to bring the money back into Canada)


Yes.

What matters for the Canadian tax system is one's tax residency.
http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html


My understanding is that once one is a tax resident or a deemed tax resident of Canada, one's world wide income has to be reported.

I am assuming that "2 jobs in Canada (full time)" means you are living in Canada. Should there be enough ties to a country that Canada has a tax treaty with, you *might* be a Non-Resident. I have not looked into it but I believe this would mean reporting both Canadian job incomes but possibly avoiding paying taxes to Canada on the trading account with some exceptions (common situation - paying the Canadian NR withholding tax on Canadian dividend paying stock).


By any chance did you investigate what you should do before taking the Canadian jobs?
Or consulted with an expert on cross country taxation?


It was a pain for me to file a Canadian and US tax return simply for working in the US for six months, as a Canadian resident/citizen.


Cheers


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## cbtshare (Nov 12, 2016)

Joe Black said:


> Regarding T4's, yes you have to combine them all. There's a good chance it will be in your favour anyways, as you may get a bigger return.


ok, thank you for you reply. I did try filing through HnR Block, submitted the two T4s and it says, I actually owe 3000.00, and if I only submit one(on the last screen, not actually click submit to file) I dont owe anything.So I never filed any taxes this year in May because I didn't have the amount of money they said I would owe if I submitted the two T4s(I had two full time jobs in 2015 and lost one and now only have one job, so its hard to come up with the amount owing now, so I wouldnt file until I had the funds, because it wanted payment immediately). I hope that better explains


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## cbtshare (Nov 12, 2016)

*Power Circuit*



Eclectic12 said:


> Yes.
> 
> You most likely *really* want to anyway. Both companies have likely been charging CPP & EI so by filing both T4's, the over payment will be reconciled so that either taxes owing will be reduced or more likely, there will be a refund.
> 
> ...



Ok, thank you, that is what I thought, they would know and then I would be in trouble if I filed and omitted one, so I havent filed as yet. I am from the Caribbean, so doubt there is any tax treaty, and I have been in Canada for 5 years. No I did not do any investigation, I just took the jobs and they payed the taxes, I am not a contractor.


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## Eclectic12 (Oct 20, 2010)

cbtshare said:


> ... I did try filing through HnR Block, submitted the two T4s and it says, I actually owe 3000.00, and if I only submit one(on the last screen, not actually click submit to file) I dont owe anything.


Problem is you have to report all income made.

Without having the numbers, it is hard to be sure but likely the reason you owe is that because each employer does not know about the other income, they think what they are paying you is all the income you have. When both are added together - the tax that should be withheld by the employer is bigger that what each has separately withheld, based on a smaller income.

Keep in mind that Canada uses income levels where each additional dollar earned may be taxed at a higher level. So using Ontario 2016 tax levels as outlined here for the combined provincial and federal tax ... http://www.taxtips.ca/taxrates/on.htm

The first $41,536 of income is taxed at the "other income" rate of 20.05%, then from $41,537 to $45,282 the tax rate is at 24.15%. So for an income on one's return of $43K, it is not 24.15% x $43K but the sum of $41,536 x 20.05% + $1,464 x 24.15%.

This is assuming one does not have any credits or deductions that reduce the income level.




cbtshare said:


> ... So I never filed any taxes this year in May because I didn't have the amount of money they said I would owe if I submitted the two T4s(I had two full time jobs in 2015 and lost one and now only have one job, so its hard to come up with the amount owing now, so I wouldnt file until I had the funds, because it wanted payment immediately).


This is not a good idea as this makes CRA think you are trying to avoid paying the taxes you owe. 

It is better to file the return on time then discuss a payment schedule as doing so avoids the late filing fees as well as interest charging piling up each day.
http://www.cra-arc.gc.ca/gncy/cllctns/cnntpyfll-eng.html
http://business.financialpost.com/u...love-to-have-what-if-you-owe-tax-but-cant-pay
http://www.taxtips.ca/filing/cantpay.htm




cbtshare said:


> Ok, thank you, that is what I thought, they would know and then I would be in trouble if I filed and omitted one, so I havent filed as yet.


Both companies have probably already transferred the T4s electronically to CRA so *they already know*. CRA just hasn't gotten around to chasing you yet.

Whether you filed or not - they likely know.




cbtshare said:


> I am from the Caribbean, so doubt there is any tax treaty, and I have been in Canada for 5 years. No I did not do any investigation, I just took the jobs and they payed the taxes, I am not a contractor.


Then likely you need to file somewhere around five years or so for tax returns, depending on when you became a Canadian tax resident (or were deemed to be one).

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html


Cheers


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## cbtshare (Nov 12, 2016)

Eclectic12 said:


> Problem is you have to report all income made.
> 
> Without having the numbers, it is hard to be sure but likely the reason you owe is that because each employer does not know about the other income, they think what they are paying you is all the income you have. When both are added together - the tax that should be withheld by the employer is bigger that what each has separately withheld, based on a smaller income.
> 
> ...


Ok, thank you for the explanation.So I didn't know about filing late, or that I had to file every year, If I file this week, you think there maybe a chance I can avoid penalties? Is it best to file through HnR block so they can contact them on my behalf? Or whats the best way I should approach this?


Thank you


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## Eclectic12 (Oct 20, 2010)

^^^

You can explain and apply to have the penalties waived - I have no idea of whether it would work. I suspect only some would be waived but unless one asks, one never knows.
http://www.cra-arc.gc.ca/gncy/cmplntsdspts/cnclwvpnlty/menu-eng.html 


The people I know who have missed the deadline made sure they didn't owe anything. For one fellow, he was eventually assessed all kinds of penalties/interest/late fees but as the paperwork filed showed he didn't owe anything, it was reversed.


I have not had a return complicated enough so I haven't used H&R Block. So I have no way of knowing if it would be a benefit or not to go through them.


I would start by calling CRA, explain the misunderstanding and ask how to proceed.



Cheers


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## cbtshare (Nov 12, 2016)

Eclectic12 said:


> ^^^
> 
> You can explain and apply to have the penalties waived - I have no idea of whether it would work. I suspect only some would be waived but unless one asks, one never knows.
> http://www.cra-arc.gc.ca/gncy/cmplntsdspts/cnclwvpnlty/menu-eng.html
> ...


thank you


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## Eclectic12 (Oct 20, 2010)

^^^

BTW ... if the previous post is not really needed to make clear what the comment is referring to, it is nicer as well as more efficient to skip reproducing the post by using the "Reply to Thread" button, then adding things like the arrows.

Where one needs part of the post to make it clear what the comments are referring to (usually when someone else or several others has made a different comment(s) so that the arrows won't work), one can use the "Reply With Quote" but delete some of the post.


Cheers


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