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Greetings.. Question 1. I've been living overseas as an expat for 19 years. My gross Canadian income from CPP & OAS benefits totals $17855. I have no other Canadian income. Per the NR4 my OAS Non-resident tax withheld was $2643.75. As for CPP no Non-resident tax withheld. Based on the minimum tax credit, do I owe any tax based on my CPP benefit was not taxed? Question 2. What is the cost for completing my tax return and how do we go about doing this (I'm overseas) The deciding factor of having your firm complete the necessary return is dependent on your cost and whether I can expect a refund based on my Canadian CPP/OAS declared income.
Hi there,
Withholding tax should have been deducted from the CPP payments made to you since you are a non-resident of Canada. In some cases, a double-taxation treaty between Canada and your host country can reduce the rate of withholding tax to be deducted. You do not have to file a Canadian income tax return if your only source of income is CPP and OAS, because you are a non-resident of Canada. I suggest that you contact Service Canada to ensure that tax is properly being deducted from the CPP payments that you receive. Lastly, you can file an optional return (Section 217) to claim a refund for the withholding tax deducted. You will receive a refund (pursuant to Section 217) if your Canadian tax liability imposed on your worldwide income is less than the withholding tax deducted from the CPP and OAS payments made to you. My fee to file a Section 217 return is $200 + disbursements and taxes.