Olympic Earnings in Canada: Costly Tax Mistakes Await

Worked in Canada for Olympics – US Citizen

12 December 10
Cross Border Tax Q&A

Question

Hello Phil,

I am looking for advice and hopefully you can assist me. Brief overview is I worked in Canada from Oct 2009 – March 2010 for the Winter Olympics. I filed the T1 through my tax accountant here in the states and did not receive what I was expecting to receive back for 2009, as I was told I would receive it all back because I was under the required limit. My general question is, can you provide information on what I should do as I would like to reopen this issue because I should have received around $1200 back and I received just over $100 back. Is it worth refiling? The answer my tax accountant said the Canada officials gave him is because I earned money in the US for 2009 as well then I can’t claim the deductions in Canada but really it’s not deductions, since I was under the required limit for Canada. The issue will come up for 2010 as well so please let me know if you are able to assist with this.

Thank you,

XXXXXXX

Answer

Hi XXXXXXX

If you send me you 2009 T1 and 1040 I can take a look and give you some advice going forward. Something is probably wrong with the returns as you should have most likely received the full refund or obtained a tax credit in the US for the Canadian source income (depending on how the returns were filed).

If you send me the returns by PDF I can take a look. Also, please send me you phone number so I can give you a call once I review the returns.

Regards

Phil

Regards

Phil

Phil Hogan, CA
250-661-9417

Phil Hogan, CPA, CA, CPA (Colorado)

Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@beaconhillwm.ca or via telephone at 778.433.1314. You can also read more about Phil at www.Beaconhillwm.ca/team/about-phil/

To book a complementary cross-border consultation with our team (limitations apply), please click here: https://beaconhillwm.ca/get-started-now/

This commentary reflects the personal opinions, viewpoints and analyses of the Beacon Hill Wealth Management Ltd. partner providing such comments, and should not be regarded as a description of advisory services provided by Beacon Hill Wealth Management Ltd. or performance returns of any Beacon Hill Wealth Management Ltd. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Beacon Hill Wealth Management Ltd. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Any discussion about taxation is for educational purposes only and should not be viewed as professional advice. Consult your tax professional for tax advice on your particular situation.

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