Pay: Statements, Backpay, Benefits, Deductions (Taxes, T4), Deployed ect... [MERGED]

[pi-r-squared]

I don't know how tax really works when it comes to crossing provinces, but the D/S on basic said that we'd get a greater income tax return since we were not going to be in Quebec when we filed for a return.  How does filing for the tax work in regards to the province difference?  Does something show up on the tax form, or do we have to do something fancy.

 

[Gunner]

Circle,

You are to submit your income tax based on your province of residence as of 31 Dec 05 (ie your current posting according to your last posting instruction). I'll need some more detail about you (ie are you attach posted somewhere, on TD, etc). 

 

[Cloud Cover]

While $1000 isn't the end of the world, it has me worried enough to look into it.

File your return in the lowest taxing province that you are legally entitled to file in. Find out if you can split the incentive pay over two or more tax years.  Max your RRSP's if you can't split the income. By extra life insurance from within your RRSP plan, so you can keep adding to it.

 

[jumpers_mum]

Hi All,

As this is my first post, please excuse any ignorance in procedure and accept my apologies if I'm posting in the wrong area. 

My son was in St. Jean for his BMQ (finished in Feb '06).  I went to visit him in Meaford over the weekend and he gave me his income statements from Basic and asked me to prepare his income tax while he's posted there for SQ.  I've just looked at the paper work and he's given me a Canada Customs and Revenue Agency T4 form as well as a Revenu Quebec Employment Income and Miscellaneous Income form.  I've figured out that he should be using Ontario as his residence (all his mail comes here, his driver's license address is from Ontario, he was here on December 31st), but I'm not sure which income statement I should be using. The amounts differ slightly (by $2.33 defined on the Revenu Quebec slip as "Other benefits" that aren't listed on the CCRA slip).

Any information is greatly appreciated.  Thanks in advance,

jumpers_mum aka Karen

 

[George Wallace]

As he resided in Quebec on 31 Dec 2005, he must pay Quebec Taxes.  His permanent residence was in St Jean, Quebec, no matter what you or he may think.  That is how Revenue Canada looks at it.  That is how the Canadian Forces must look at it.

 

[jumpers_mum]

Hello and thank you for your reply.

I've discovered that at least with the web-based Ufile.ca, there are areas to enter the information from both the T4 and the Revenu Quebec RL-1 slip, once his residence on 31-Dec-05 is declared as Quebec.  The main disadvantage I can see at this point is that Netfile is no longer an available option, as this will be his first time filing in Quebec.

Cheers,
jumpers_mum aka Karen

 

[geo]

George....
hate to dissagree with you.
the lad was on course in St Jean..... he didn't live there - it was not his permanent residence.

The man is a resident of Ontario until such time as he is posted.
declare both Quebec & Fed withholdings against your Fed tax return.

 

[acclenticularis]

Been a long time since I have been on.  Finally a member of the CF again!  In civvy life until a couple of months ago I worked in a public accounting firm and I can say with absolute certainty that one must file in the province of permanent residence as of Dec. 31st of the tax year in question.  You will find all of the rules pertaining to, and explaining as such, in either the Tax Act or on the Canada Revenue Agency's website.  If absolutely unsure, send a query to CRA and they will explain more fully.  However, tax wise, I am certain he would be considered a permanent resident of the province from which he came until he is operationally posted.

 

[George Wallace]

Merged

Officer Entry Plans (Regular Force)


Response to a previous poster:

I was going to say "Simply look up at the bottom what Letter matches your Plan" but it looks like someone in Recruiting or with access to DAODs will have to answer as these are the current programs/plans listed:

A - ROTP (former CBI 204.2111 & 204.2151)
B - OCTP-NFS (former CBI 204.2113 & 204.2153)
C - DEO (former CBI 204.2114 & 204.2154)
D - UTP-NCM / OCTP-FS (former CBI 204.2112, 204.21135, 204.2152 & 204.21535)
E - CFR (former CBI 204.212)

Once you find out what corresponding Letter your Plan is listed as, just apply it to the OCdt and later the Pilot charts.

 

[mbhabfan]

thanks for the information.  Under the CEOTP I am an officer cadet until my wings or university degree?

 

[George Wallace]

If you have a Message, it will have the Pay Scale that you will be paid, somewhere in the narrative.

 

[mbhabfan]

what "message" are you referring to?

 

[George Wallace]

When you get your paperwork finalized and you are ready to go, you should also have a copy of your Posting Message.  On it, it should state what your Pay Scale will be and the Authority by which it is granted.  That will tell the Pay Clerks at the Base what they need to know to pay you the correct amounts.

 

[smale436]

I find this site very informative and it has given me much good info to help in my career. My question is where do I file taxes next year? Basically, I attended BMQ in Borden from Jan till March, went on TD in Cold Lake until July and I am now attached posted to Kingston until February attending the POET course. I am an AVS Tech and my QL3 is expected to be 18 months after POET ends. It is usually in Borden but they are supposedly running it at a civvy college in Halifax now. I have not changed my address with Revenue Canada or the banks as CFRC suggested to wait until your first posting. So should I file them in Manitoba where I came from or file in Ontario. I do not have a mortgage or lease as I lived with my father. Also can you claim single quarters on your return the way you can claim rent payments for school tax purposes? Any information would be greatly appreciated. Thank you very much!

 

[Blackadder1916]

Your province or territory of residence is the province or territory where you lived or of which you were considered to be a factual resident on December 31.
http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/personal-info/province/menu-e.html

You usually have to use the tax package for the province or territory where you resided on December 31. If you had residential ties in more than one province or territory, use the package for the province or territory where you had your most important ties.
Residential ties means where your principal residence and personal property are, where your spouse, common-law partner, or dependents reside, and ties that may be relevant include social ties, hospitalization insurance, bank accounts, and driver’s licence.

For military members who may have been employed at several locations during the year this may be somewhat confusing if you do not have spouse or children, are living in single quarters, and all your personal property accompanies you even if you're sent temporarily to another location.  Factors you should take into consideration are;

• Your parent unit,  (on TD or even attached posting you still remain on the strength of your parent unit)
• If you are considering using your parents home as residence of record, think, do you still live there.
• If you use as your residence a province in which you did not receive employment income while being employed for the full year a red flag may be raised at CRA.

A tax credit for rent is usually a provincial tax credit and applicable only if you are resident in that particular province.  Not all provinces have such tax credits.

Some may try to use the province that will give them the largest refund, but the best suggestion is you should never try to fool the taxman.  Once the new income tax filing season starts, CRA will have hotlines available that can answer this question and any other question you may have.

 

[Cdnronin]

Are Canadian troops exempt from Income Tax while in a war zone?  I know that US troops are and the UK are in the process of doing the same...

Quote:

From the Sun (UK) Troops May Receive Pay Perks (March 6, 2006)

BRITISH soldiers on active service could be exempt from tax under plans revealed by Tony Blair last night. The PM has ordered a major review of pay and perks for brave troops on missions overseas — in a massive victory for a Sun campaign.

His plans were revealed just hours after Tory leader David Cameron told The Sun he wanted tax breaks for Our Boys abroad. UK Armed Forces are the only ones in Nato who pay income tax during combat.

Now ministers are poised to announce a deal that will cost hundreds of millions of pounds.

Mr Blair’s official spokesman confirmed: “The Prime Minister asked several weeks ago that the whole package of support for the Armed Forces should be looked at. “That review should become available shortly.”

The perks will include an increase on the current 20 minutes free telephone calls troops get to contact home. And there will be medical and time off packages. A senior Whitehall official said: “This is about one week away from announcement.

“It’s a hugely expensive move but there can be no alternative. It is the right thing to do for our people.”

Mr Blair ordered the review in late August after talks with defence secretary Des Browne. But he failed to announce a breakthrough because military top brass insisted soldiers abroad should all receive the same — whether or not they are in the firing line.

One option is an across-the-board pay hike for all troops. But ministers could also follow America’s lead and take all soldiers on overseas missions out of tax. Tory supremo Mr Cameron got the ball running by promising in yesterday’s Sun he will study the pay conditions for UK soldiers. He said troops fighting abroad are laying their lives on the line for their country — and therefore deserve special treatment. Before the measures come into effect the Armed Forces Pay Review Body must agree the blueprint — and it needs the Cabinet’s blessing.

From the Guardian Newspaper (UK) October 6, 2006

Defence minister Derek Twigg yesterday announced a limited welfare support package for wounded British troops, including allowances for families visiting service personnel in hospital, and a £5 daily allowance for soldiers recovering in hospital. The move comes amid increasing criticism of the conditions and medical treatment available to wounded British troops.

Existing separation allowances and at-sea bonuses will also be extended to cover personnel who are in hospital, Mr Twigg said. Other measures include free delivery of Christmas parcels and improved access to broadband internet, television, and library facilities. A special military ward at Selly Oak hospital in Birmingham will be announced later.

The MoD said earlier this week that soldiers serving in Iraq and Afghanistan would be exempt from income tax or given equivalent pay rises as part of a forthcoming armed forces salaries review."

 

[Armymedic]

We Cdns have enjoyed tax free status for qualified msns since 1 Jan 04.

Please search

 

[tomahawk6]

This article refers to British soldiers. I am not completely conversant with UK benefits but my impression is that the government offers few benefits to its soldiers in theater compared to say US troops. I think there is a move in the UK to improve this situation, but frankly the military under a Labor government is like Bob Cratchit working for Ebenezer Scrooge.

 

[bilton090]

We Cdns have enjoyed tax free status for qualified msns since 1 Jan 04.

Please search

              Yes we have been getting it since 1 jan 04, We were getting it in Haiti !

 

[1feral1]

As for the ADF, we too are in the tax free bubble whilst deployed. Personally, I would have thought the English were doing the same. As for our American allies, they too are getting tax free pay, as we were just speaking to some US soldiers yesterday about it.

Regards,

Wes