Canadian Tax Questions

I moved from Saskatchewan to Alberta in December of 2002. Most of my year’s income obviously was earned in Sask. However, my tax software only asks me for my province of residence as of Dec 31, 2002 and thus calculates the provincial portion of my taxes as if I lived the entire year in Alberta. Is this the correct way to calculate this portion of my taxes? I’m definitely not hiding this fact as I’m claiming moving expenses.

I also have a (small) graduation tax credit from the province of Saskatchewan for last year as that’s where I earned my degree, however, this appears to apply only to my Saskatchewan provinical taxes and as I’m not paying any (again assuming the above is correct), it doesn’t seem to be valid. Is this correct? Since Saskatchewan taxes are higher I doubt I’d be gaining anything by filing as a Sask resident.

Geez, doesn’t Aberta have the lowest income tax in Canada. Don’t ask too many questions :smiley:

IAN a CCRA employee (not that THEY will guarantee that their answers are correct either), but generally you pay provincial taxes based on your province of residence on Dec 31st. If you have spent the previous 364 days living in a different province, it doesn’t count for tax purposes.

Former employee of a tax prep company who’s name may have something in common with that of a video rental chain :stuck_out_tongue: ;

Yes, Bookkeeper has it right - you pay provincial tax based on where you lived Dec 31, meaning Alberta. And that’s a plus for you as we have the best tax rate in the country.

You’ll be able to use very little of your moving expense deduction as that’s only deductible on the money you made at your job in Alberta (a months wages). But, you can carry that forward a year and use the rest on next year’s return.

And yeah, your Sask graduation tax credit doesn’t apply, though you may be able to use it in the future if you moved back to Sask (that’s too obscure for me to know off the top of my head - you’d have to research how long those things can be carried forward if at all… then again you’d have to pay a years worth of taxes at the Sask rate just to get back $10… I’d say toss it).

Don’t worry about it though; such provincial tax credits are usually only worth a few bucks (litterally… $100 would be surpising) savings on what you’d owe, whereas paying Alberta tax on the whole year’s income will save you much more… so the choice of which to take is obvious (not that you have a choice though, lucky! :D).