Quick Question | Tax Free Savings Accounts | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

sp_Feed Topic RSS sp_TopicIcon
Quick Question
August 6, 2018
8:29 am
willwall
Newbie
Members
Forum Posts: 1
Member Since:
August 6, 2018
sp_UserOfflineSmall Offline

Hello,

I arrived in March 2015 on a two-year working holiday visa and became a permanent resident in 2017. I've just opened a TFSA - what is the most I can contribute? $26,500 or $11,000

thank you so much 🙂

August 6, 2018
11:12 am
gicjunkie
Ontario
Member
Members
Forum Posts: 653
Member Since:
November 7, 2014
sp_UserOfflineSmall Offline

No contributions allowed for non residents.
As a new resident, you are allowed $5500 x 2 years of residency = $11,000.

For full set of rules go to:
http://www.canada.ca/en/revenu.....count.html

From CRA website: (edited)

"no TFSA contribution room will accrue for any year throughout which you are a non-resident of Canada"

"The annual TFSA dollar limit is not pro-rated in the year of emigration or immigration"

August 6, 2018
11:24 am
Norman1
Member
Members
Forum Posts: 6768
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline

Permanent residency is an immigration status. That's separate from being a resident for Canadian income tax purposes.

TFSA contribution room is earned in years when one is a resident for tax purposes.

Did one become a resident, for tax purposes, on arrival in March 2015, or some time after that?

August 6, 2018
1:58 pm
Loonie
Member
Members
Forum Posts: 9245
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

Norman's distinction is a valid one.
Did you pay income tax in Canada in 2015?
If so, then you must have been deemed a Canadian resident for tax purposes, and would thus qualify for the larger amount of TFSA.
However, a mistake is costly, so don't go by me.

Suggestions:

Check your CRA profile online. It's supposed to tell you how much contribution room you have. It may or may not be up to date completely but it should be obvious if 2015/16 are included. What does it say?

Phone CRA and ask directly. I recommend calling at least 3 times to check that you always get the same answer because they are prone to misinformation.

Keep the documents related to your initial entry into Canada for the rest of your life, in a safety deposit box. Your executor might need them.

August 9, 2018
5:30 pm
Bill
Member
Members
Forum Posts: 3922
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline

Please write your comments in the forum.