How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Arthur Rubin Your Own Question

Arthur Rubin
Arthur Rubin, Tax Preparer
Category: Canada Tax
Satisfied Customers: 1236
Experience:  Tax preparer with 23 years experience, including US/Canada tax returns.
Type Your Canada Tax Question Here...
Arthur Rubin is online now
A new question is answered every 9 seconds

Hello, I am 66 and now a new permanent resident of Canada

Resolved Question:

Hello,

I am 66 and now a new permanent resident of Canada - I will receive a state pension from Austria of 1800 Canadian Dollars each month (the tax is taken off in Austria according to the tax treaty). I have no other income - my wife is looking for work (will more than likely find something and earn around 30 or 40 000 a year). Do I claim a 'foreign tax credit' - not sure how this works or how much I am likely to get back (as mentioned Austria tax me at source there). Any advice appreciated or explanation as to why I might get tax credit in Canada - I do not understand. Many thanks
Submitted: 1 year ago.
Category: Canada Tax
Expert:  Rachel-Mod replied 1 year ago.

Hello,

I'm a moderator for this topic. I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!

Expert:  Arthur Rubin replied 1 year ago.

Thank you for using Just Answer.

 

 

As the treaty (in Article 18) does not state the income is only taxable in Austria, you will have to take a tax credit on your Canadian (and possibly Provincial or Territorial) tax return. The amount of the credit is (approximately) the lesser of the amount of foreign tax attributable to the dual-taxed income and the amount of Canadian tax attributable to the dual-taxed income..

 

 

If filing on paper, you use form T-2209 to compute the credit against your Federal taxes, and (unless you are a resident of Quebec) form T-2036 to determine your Provincial credit. Depending on your particular province's 428 form, there may be calculations there which affect what goes on the T-2036. The credit on non-business income is non-refundable and cannot be carried forward or back. (The Federal credit on business income can be carried back up to 3 years and forward up to 7 years. However, the Canadian interpretation of the treaty strongly suggests that a pension is non-business income, as involuntary contributions to a pension you would not be eligible for are considered a non-business tax.)

 

 

I hope this is of help to you. Please do not hesitate to ask further questions related to the foreign tax credit.

Arthur Rubin, Tax Preparer
Category: Canada Tax
Satisfied Customers: 1236
Experience: Tax preparer with 23 years experience, including US/Canada tax returns.
Arthur Rubin and other Canada Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Arthur Rubin

    Tax Preparer

    Satisfied Customers:

    21
    Tax preparer with 23 years experience, including US/Canada tax returns.
< Last | Next >
  • http://ww2.justanswer.com/uploads/AR/arubin9/2012-2-4_42617_ArthurRubinedit.64x64.jpg Arthur Rubin's Avatar

    Arthur Rubin

    Tax Preparer

    Satisfied Customers:

    21
    Tax preparer with 23 years experience, including US/Canada tax returns.
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3241
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6687
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level