# Newcomer to Canada, H&R Block wants to charge me $220+ to file a tax return!



## joner13 (Apr 18, 2017)

I have just left a H&R block meeting after telling them I couldn't pay the extortionate $220 fee. They told me to call them when I could - but now I'm wondering what my options are.

Can I/Should I call them, cancel the whole thing, get my T4s back and file myself? or am I locked into something? Currently I am unable to NETFILE online as apparently newcomers have to paper file their first time.

I'm from the UK where I've never had to file taxes and I have no idea how to navigate this situation!

Thanks in advance


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## AltaRed (Jun 8, 2009)

Actually if you buy tax software (or use a freebie version) and use the T1 General Guide, you can likely file your own taxes easily enough. I am assuming that all you have is T4s and maybe a T3 or T5 or two? 

The tax software will save in PDF form and print out a paper return that you can then mail in to CRA. SimpleTax and Studio Tax are free. I like Studio Tax since it resides on your computer. IF you want, you can also purchase UFile or TurboTax (the latter being more expensive than UFile).


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## Eclectic12 (Oct 20, 2010)

joner13 said:


> I have just left a H&R block meeting after telling them I couldn't pay the extortionate $220 fee. They told me to call them when I could - but now I'm wondering what my options are.


Did they say what was complicated that drives up the fee?

The regular fee for a simple return is already too much but I have not hear of this high.




joner13 said:


> ... Can I/Should I call them, cancel the whole thing, get my T4s back and file myself? or am I locked into something?


I wouldn't think you are locked in ... but I have usually be able to figure out what I need to do so that I have always done it myself.

The main thing I can think of that might make it complicated is if you have assets back in the UK and whether you are immigrating.
http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/menu-eng.html
http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nwcmr-eng.html






AltaRed said:


> joner13 said:
> 
> 
> > ... Currently I am unable to NETFILE online as apparently newcomers have to paper file their first time.
> ...


Just about all the tax software I've used recently provides an option to either print directly (if one has a printer) or print a PDF that one can take to office place that will provide a printer.

Worst case, one used to be able to stop off at a Canada Post outlet to get the paper forms and guides (one can download them from CRA's web site now). It is more painful than software as one has to do the math plus double check for errors copying from form to form or just plain mistakes. (My co worker has a spreadsheet to check the math but he is still using the paper forms).

http://www.studiotax.com/en/?page=2

https://en.wikipedia.org/wiki/Comparison_of_Canadian-tax_preparation_software_for_personal_use


Bottom line is that unless there is something from the UK side of things ... it sounds like the Canadian tax return would be easy enough, as a newcomer to DIY. If you have questions, people are generally good about trying to help out here on CMF. 


The two pain points I recall from paper tax returns are math (tax software takes care of this one) and assembling (certain slips are to be attached to certain pages). 



One caution though ... the deadline for filing for a personal return is April 30th. It is far better to file what you have and attach a note than file late. Filing on time will waive penalties and interest that adds up. The process to adjust the return later is relatively simple, just tedious. I am guessing that whether there is a refund or tax owing is not known so I'd file on time, no matter what.


Cheers


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## rl1983 (Jun 17, 2015)

OP probably has taxes to file in different countries, so that complicates things further apparently. It's just more paperwork for H&R, which means you are going to pay more.


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## AltaRed (Jun 8, 2009)

rl1983 said:


> OP probably has taxes to file in different countries, so that complicates things further apparently. It's just more paperwork for H&R, which means you are going to pay more.


Agreed. The OP has not been at all forthcoming on complexities of the situation.


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## mordko (Jan 23, 2016)

Honestly, this does not seem too high for someone who has had income from and paid taxes to two countries in the same year. 

Nor would I try to do it all myself in that situation. If the OP can't afford the bill then he may be able to find a tax clinic in his area. Usually accountants spend a bit of time doing free returns for poor people. 

And yes, our taxation system is broken. In the U.K. It's all simple and automatic. Employees who don't change companies don't have to file a tax return. They don't have 456799436789008651135 exemptions, loopholes and credits. Instead they have lower marginal rates.


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## Tetsujin (Mar 17, 2016)

That is too much unless some have said you have UK taxes to pay too. If revenues are just from Canada and less than 10k then you can find a tax clinic (free) in many places. Some non-government organizations ask for 15$ fix in Montreal. In china town they do also taxes return. Ask for close friends that are newcomers too. Friends told me they found freelance accountants by $60.

You can try also an online software like impotrapide or impotexpert for free.

Do you own a house here in Canada? Do you have investments? Do you have any other incomes? If yes, this could complicate any tax firm to ask you for around $250. A friend recently bought a house, the freelance accountant requested $65 then when arrived at my friend's house requested $250. In my personal opinion the accountant wanted to take advantage on him. I heard that H&R block are expensive also, so you should try quickly other sources before and if you don't find any cheaper solution you can finally go to H&R block.

I have a friend that was scammed by accounting firms for $800 and his condition was very very simple that they could have done it by himself. 

Make a comparison and choose. If you don't share your background wider nobody can suggest you a better approach.

Good luck.


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## Eclectic12 (Oct 20, 2010)

rl1983 said:


> OP probably has taxes to file in different countries, so that complicates things further apparently. It's just more paperwork for H&R, which means you are going to pay more.


Possibly ... though if the OP didn't have to file a tax return while in the UK, then I wonder how likely there would be assets that require a departure tax return to be filed.

There's no info on whether the Canadian income is more than whatever was happening in the UK so only the OP can clarify.




Cheers


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## Eclectic12 (Oct 20, 2010)

mordko said:


> Honestly, this does not seem too high for someone who has had income from and paid taxes to two countries in the same year.


 ... except that the OP said they didn't have to file a UK tax return, suggesting there's little income from or UK assets to complicate things.

Assuming there's nothing in the UK to worry about - what is hard about reporting world wide income that looks to be mostly Canadian employment income (the OP talks about a T4), likely no RRSPs and limited other credits/deductions?


Cheers


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## joner13 (Apr 18, 2017)

Thanks for all the replies everyone!

My situation is very simple - I was working a minimum wage job in the UK in the months leading up to my arrival in Canada (May 31st) and don't own any assets back in the UK

During my H&R Block meeting today I was asked to provide my UK income up until my arrival in Canada, it wasn't explained clearly why they needed this but I was told I was not being taxed on it.

I refuse to believe that $220+ is a reasonable fee especially since my refund is around the same amount. I'm going to email H&R Block and see if I can cancel this as I was not made aware of the high costs upfront. and I will try StudioTax as some of you have suggested

Again thanks everyone for your replies it's super appreciated!


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## Eclectic12 (Oct 20, 2010)

joner13 said:


> ... My situation is very simple - I was working a minimum wage job in the UK in the months leading up to my arrival in Canada (May 31st) and don't own any assets back in the UK ...


Definitely sounds like you can do it yourself (DIY) to me. Assets in the UK likely would be where a UK return might be needed to claim treaty benefits to minimise or get rid of double taxation.

Canada taxes world wide income while it seems the UK does not, for a UK person living abroad.

Did you let the UK know you were leaving?
https://www.gov.uk/tax-right-retire-abroad-return-to-uk




joner13 said:


> ... During my H&R Block meeting today I was asked to provide my UK income up until my arrival in Canada, it wasn't explained clearly why they needed this but I was told I was not being taxed on it ...


Up until you become a Canadian tax resident, only Canadian sourced income is taxed by Canada. After that date, world wide income is taxed so knowing what was earned before arriving will help ensure one does not mistakenly include income that should not be taxed.

http://www.cra-arc.gc.ca/newcomers/#dtc
Definitely sounds like you can do it yourself (DIY). 




joner13 said:


> ... I refuse to believe that $220+ is a reasonable fee especially since my refund is around the same amount. I'm going to email H&R Block and see if I can cancel this as I was not made aware of the high costs upfront. and I will try StudioTax as some of you have suggested


You likely haven't setup an RRSP (reduces income in exchange for tax deferred growth for retirement) or made charitable donations (a tax credit reducing taxes owing) or have any investments yet. You also only have a part of a year.

The kicker for me is always that one has to provide all the slips *anyway*.


Since you mentioned a T4 form ... which I assume is for employment income - your employer, based on what it knows, will send the withholding tax on each pay to CRA. Filing the return by April the following year registers any deductions/credits that the employer did not know about. If the final tax amount is less than what was withheld, then there is a refund (aka interest free loan to the gov't). If the final tax amount is larger than what was withheld, one will have a tax bill to pay.

Years ago, I started with a tax book I bought and the paper forms ... though these days, the help in tax software is pretty good.

If anything puzzles you ... post a question in the tax section.


Cheers


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## Eclectic12 (Oct 20, 2010)

I missed mentioning that http://www.taxtips.ca/personal_income_tax.htm is a good site for info.


Cheers


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## Nerd Investor (Nov 3, 2015)

Immigration returns are a bit more complex, so the fee is likely higher than usual (I assume, not sure what H&R Block typically charges). They need your UK income as your personal tax credits on your Canadian immigration return are pro-rated based on your total income reported on your Canadian return vs your worldwide income for the year. Worldwide income itself sometimes has to be pro-rated for the period you were resident in Canada, although doesn't seem to be the case here. 

You can probably tell them to forget it if you want, I doubt they'll come after you for a bill under $300. Or you could bite the bullet this year and DIY going forward when your returns will be very straightforward.


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## fplan (Feb 20, 2014)

joner13 said:


> I have just left a H&R block meeting after telling them I couldn't pay the extortionate $220 fee. They told me to call them when I could - but now I'm wondering what my options are.
> 
> Can I/Should I call them, cancel the whole thing, get my T4s back and file myself? or am I locked into something? Currently I am unable to NETFILE online as apparently newcomers have to paper file their first time.
> 
> ...


Go to new comer center.. they will have volunteers who can do it for free or cheap..

http://centrefornewcomers.ca/our-services/settling-in-canada/tax-clinics
http://settlement.org/ontario/daily...axes/where-can-i-get-help-with-my-tax-return/


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## Eclectic12 (Oct 20, 2010)

Nerd Investor said:


> Immigration returns are a bit more complex, so the fee is likely higher than usual ...


Normally ... I would agree. 

However, there seems to only be UK income up to the arrival date (not taxed by Canada) and then only Canadian income after the arrival date. So from a Canadian tax return perspective, other than filling in the date of arrival plus where ever the UK non-taxable income is reported - it does not seem all that different from a regular first time tax return.

Between the resources in tax software, web sites and being able to ask questions here ... paying H&R Block $220+ seems steep for what is needed.


On the UK side, since a tax return hasn't needed to be filed before - the direction is to file a P85 form. This has to be done by post instead of online.
The main possible wrinkle is the UK employer is supposed to have given the OP a P45 form.
https://www.gov.uk/government/publications/income-tax-leaving-the-uk-getting-your-tax-right-p85


Cheers


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## Eclectic12 (Oct 20, 2010)

joner13 said:


> ... I'm going to email H&R Block and see if I can cancel this as I was not made aware of the high costs upfront.


If you have trouble getting your forms back, I would quietly but firmly point out that their co-operation means less negative comments should your friends/family/coworkers ask. If that doesn't work, ask to speak to a manager. The key message, if needed, is that you will file the return based on estimates, with a note that the estimate is *because* H&R Block was not giving your forms back. 

A smart manager should recognise the opportunity that co-operating presents.


In the meantime, see if you can find a pay stub from as late as possible in Dec. It should give you approximate numbers, if the forms aren't available in time. CRA has a copy of the T4 and will adjust the return according to what they received. You can ask for another copy from the employer or CRA then make sure everything is okay in the return.


After you are able to register for the online "My Account" system, the tax software can download the T forms to check. This might not work for tax year 2016 but may come in handy for tax year 2017.


In the coming year, you will probably want to learn about the Tax Free Savings Account [aka TFSA] (which can hold stock, bonds, GICs, savings - depending on what account priviledges you sign up for) and the Registered Retirement Savings Plan [aka RRSP]. Right now the priority is to get the tax return filed on time but these accounts will be useful to know about.


Cheers


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