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Posted by Mike on April 12, 2007, 6:13 pm
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I emigrated from Canada in 2006. The instructions for the
Ontario Health Premium have me a bit confused. According to
the guide, you owe the OHP if you have more than a certain
income and were a resident of Ontario on December 31, 2006.
Well, on December 31, 2006, I was actually a resident of
California. But Ontario was my last province of residence
prior to emigrating, which means I use the Ontario resident
forms, and other things that say "December 31, 2006" really
seem to mean "December 31, unless you emigrated from Canada,
in which case the date you emigrated".
So do I owe (1) the entire OHP based on my income prior to
emigrating, (2) a pro-rated OHP based on the number of days
I was in Canada (like the Basic Amount), or (3) no OHP at
all?
I want to emphasize that I'm not trying to avoid the OHP and
don't mind paying it if I owe it. But I don't want to claim
the wrong amount on my Foreign Tax Credit on my US taxes,
and then have to file a 1040-X later. It seems desirable to
get this right the first time.
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<< that may be imposed upon the taxpayer. >>
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Posted by Christopher Mewhort, EA, CGA on April 13, 2007, 11:28 pm
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Mike wrote:
> I emigrated from Canada in 2006. The instructions for the
> Ontario Health Premium have me a bit confused. According to
> the guide, you owe the OHP if you have more than a certain
> income and were a resident of Ontario on December 31, 2006.
>
> Well, on December 31, 2006, I was actually a resident of
> California. But Ontario was my last province of residence
> prior to emigrating, which means I use the Ontario resident
> forms.
<snip>
If you really "emigrated", you would not use the Ontario
forms.
Christopher Mewhort, EA, CGA
Moderator:
On the contrary, he owes a partial Ontario Heath premium
based on his 2006 Canadian income. How to determine if
he owes and how much he owes, I'd need to read the guide.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by parrisbraeside@yahoo.ca on April 13, 2007, 11:28 pm
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> I emigrated from Canada in 2006. The instructions for the
> Ontario Health Premium have me a bit confused. According to
> the guide, you owe the OHP if you have more than a certain
> income and were a resident of Ontario on December 31, 2006.
>
> Well, on December 31, 2006, I was actually a resident of
> California. But Ontario was my last province of residence
> prior to emigrating, which means I use the Ontario resident
> forms, and other things that say "December 31, 2006" really
> seem to mean "December 31, unless you emigrated from Canada,
> in which case the date you emigrated".
>
> So do I owe (1) the entire OHP based on my income prior to
> emigrating, (2) a pro-rated OHP based on the number of days
> I was in Canada (like the Basic Amount), or (3) no OHP at
> all?
>
> I want to emphasize that I'm not trying to avoid the OHP and
> don't mind paying it if I owe it. But I don't want to claim
> the wrong amount on my Foreign Tax Credit on my US taxes,
> and then have to file a 1040-X later. It seems desirable to
> get this right the first time.
You owe the OHP.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Mike on April 15, 2007, 1:03 pm
Please log in for more thread options > Mike wrote:
>> I emigrated from Canada in 2006. The instructions for the
>> Ontario Health Premium have me a bit confused. According to
>> the guide, you owe the OHP if you have more than a certain
>> income and were a resident of Ontario on December 31, 2006.
>>
>> Well, on December 31, 2006, I was actually a resident of
>> California. But Ontario was my last province of residence
>> prior to emigrating, which means I use the Ontario resident
>> forms.
> <snip>
> If you really "emigrated", you would not use the Ontario
> forms.
> Moderator:
> On the contrary, he owes a partial Ontario Heath premium
> based on his 2006 Canadian income. How to determine if
> he owes and how much he owes, I'd need to read the guide.
OK, I was confused; the rule is that you owe the OHP based
on your income if you were an Ontario resident "at the end
of the year", not "on December 31, 2006". At the top of
"Completing your Ontario forms", available at
http://www.cra-arc.gc.ca/E/pub/tg/5006-n/README.html, the term "end of
the year" is defined as
"... December 31, 2006 if you were a resident of Ontario
on that date, the date you left Canada if you emigrated
in 2006, or the date of death for a resident of Ontario
who died in 2006."
So I do owe the OHP (the whole thing, as far as I can tell).
Slightly incongruously, the Ontario Tax Reduction is worded
in terms of "December 31, 2006" rather than "end of the
year", not that that would apply to me anyway.
But yes, I definitely use the Ontario forms even though I
emigrated; the same document says
Complete Form ON428 if you were a resident of Ontario at
the end of the year
which I was, my "year", by this definition, having ended in
June.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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