Comments on: 2010 Canadian Taxes: Did you get your T2202 and T4a? http://scienceadvocacy.org/Blog/2010/02/07/2010-canadian-taxes-did-you-get-your-t2202-and-t4a/ Science in Canada: Issues affecting trainees Sat, 04 Feb 2012 19:01:35 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dave http://scienceadvocacy.org/Blog/2010/02/07/2010-canadian-taxes-did-you-get-your-t2202-and-t4a/comment-page-1/#comment-4392 Dave Thu, 17 Feb 2011 18:44:37 +0000 http://scienceadvocacy.org/Blog/?p=246#comment-4392 Hi Lance, I'll be writing a CAPS/Funding/Taxes type post this week coming, so definitely stay tuned for the full update. As usual, I can't offer proper tax advice and many people have been hit with reassessments this year on previous years, so one must tread carefully. One thing is very clear - the CRA will tax postdoctoral fellowships this year, with or without the T2202 form. As for other types of income that you can place it under, I believe that it has alot to do with the code that SSHRC issues you on your T4a - if it's an 04 code, you are eligible for claiming certain research expenses that you may have incurred, but if it's an 05, I'm not certain what your options are. Sorry I can't be more helpful! Dave Hi Lance,

I’ll be writing a CAPS/Funding/Taxes type post this week coming, so definitely stay tuned for the full update. As usual, I can’t offer proper tax advice and many people have been hit with reassessments this year on previous years, so one must tread carefully.

One thing is very clear – the CRA will tax postdoctoral fellowships this year, with or without the T2202 form. As for other types of income that you can place it under, I believe that it has alot to do with the code that SSHRC issues you on your T4a – if it’s an 04 code, you are eligible for claiming certain research expenses that you may have incurred, but if it’s an 05, I’m not certain what your options are.

Sorry I can’t be more helpful!
Dave

]]> By: Lance Robinson http://scienceadvocacy.org/Blog/2010/02/07/2010-canadian-taxes-did-you-get-your-t2202-and-t4a/comment-page-1/#comment-4390 Lance Robinson Thu, 17 Feb 2011 00:14:44 +0000 http://scienceadvocacy.org/Blog/?p=246#comment-4390 I'm looking forward to updates, Dave. Since I'm not eligible for E.I. or CPP, and am not considered an employee of my university, I'm wondering if I can treat my SSHRC pdf as self-employment income (with the money from SSHRC being treated as gross income). I'm thinking that this would broaden the list of possible expenses to deduct from the gross income. Does anyone have experience with this? The CAPS web site (http://sites.google.com/site/canadapostdoc/who-is-a-postdoc-in-canada) says that this has met with mixed success with CRA. Lance I’m looking forward to updates, Dave. Since I’m not eligible for E.I. or CPP, and am not considered an employee of my university, I’m wondering if I can treat my SSHRC pdf as self-employment income (with the money from SSHRC being treated as gross income). I’m thinking that this would broaden the list of possible expenses to deduct from the gross income. Does anyone have experience with this?
The CAPS web site (http://sites.google.com/site/canadapostdoc/who-is-a-postdoc-in-canada) says that this has met with mixed success with CRA.
Lance

]]> By: Dave http://scienceadvocacy.org/Blog/2010/02/07/2010-canadian-taxes-did-you-get-your-t2202-and-t4a/comment-page-1/#comment-4364 Dave Mon, 31 Jan 2011 19:37:29 +0000 http://scienceadvocacy.org/Blog/?p=246#comment-4364 Hi Archie, This is exactly the type of thing that the Canadian Association of Post-doctoral Scholars is trying to help with and I suggest that you get in touch with them regarding your story. It's really unfortunate when supervisors and/or departments make promises that they do not live up to as "tax free fellowships" were certainly used by some to attract talent from abroad. The lack of clarity on the issue was the main problem here and a general misunderstanding (esp. at the policymaker and government levels) of what a postdoc does/is and how many of them exist in Canada was probably a catalyst. Do get in touch with CAPS though as they are collecting such stories and trying where possible to protect those who acted in good faith with an extremely unclear set of rules from the CRA. At least things are clear moving forward (though not really much better), it's a real shame that so many were put through such ordeals as yours. Hi Archie,
This is exactly the type of thing that the Canadian Association of Post-doctoral Scholars is trying to help with and I suggest that you get in touch with them regarding your story. It’s really unfortunate when supervisors and/or departments make promises that they do not live up to as “tax free fellowships” were certainly used by some to attract talent from abroad.

The lack of clarity on the issue was the main problem here and a general misunderstanding (esp. at the policymaker and government levels) of what a postdoc does/is and how many of them exist in Canada was probably a catalyst.

Do get in touch with CAPS though as they are collecting such stories and trying where possible to protect those who acted in good faith with an extremely unclear set of rules from the CRA.

At least things are clear moving forward (though not really much better), it’s a real shame that so many were put through such ordeals as yours.

]]> By: archie http://scienceadvocacy.org/Blog/2010/02/07/2010-canadian-taxes-did-you-get-your-t2202-and-t4a/comment-page-1/#comment-4352 archie Fri, 28 Jan 2011 14:47:31 +0000 http://scienceadvocacy.org/Blog/?p=246#comment-4352 Have been postdoc in UofT in 2005-2008, in 2006 was told by the faculty accountant about the tax free possibility for postdocs. Phoned to CRA 3-4 times, they have told me that for sure, postdoc fellowships are tax exempt and since it is the only income I had, I do not need to pay any taxes. I sent a letter in writing asking if that is true in 2007, and got no response till 2009, when CRA sent me a request to pay off taxes for these two years or present a T2202 form in addition of T4a code 05 I had. UofT rejected to issue me such a form as well as my supervisor rejected to write any letters to CRA to prove that the fellowship is for educational purposes. This was actually written in the fellowship contract I signed, but who cares. All in all, I had to pay about 11.500 CAD this year(tax+penalties+percents+transfer), which was a nightmare for a postdoc with dependents in Europe. Canada used to be a nice country at a time... What's a pity it is not as good as before... Have been postdoc in UofT in 2005-2008, in 2006 was told by the faculty accountant about the tax free possibility for postdocs. Phoned to CRA 3-4 times, they have told me that for sure, postdoc fellowships are tax exempt and since it is the only income I had, I do not need to pay any taxes. I sent a letter in writing asking if that is true in 2007, and got no response till 2009, when CRA sent me a request to pay off taxes for these two years or present a T2202 form in addition of T4a code 05 I had. UofT rejected to issue me such a form as well as my supervisor rejected to write any letters to CRA to prove that the fellowship is for educational purposes. This was actually written in the fellowship contract I signed, but who cares. All in all, I had to pay about 11.500 CAD this year(tax+penalties+percents+transfer), which was a nightmare for a postdoc with dependents in Europe. Canada used to be a nice country at a time… What’s a pity it is not as good as before…

]]> By: gino77 http://scienceadvocacy.org/Blog/2010/02/07/2010-canadian-taxes-did-you-get-your-t2202-and-t4a/comment-page-1/#comment-3257 gino77 Fri, 10 Dec 2010 19:02:50 +0000 http://scienceadvocacy.org/Blog/?p=246#comment-3257 This sounds like a difficult situation. I have a site <a href="http://www.taxwatchcanada.com/" rel="nofollow">here</a> that can help deal with any specialized tax problems, so it may be useful here. This sounds like a difficult situation. I have a site here that can help deal with any specialized tax problems, so it may be useful here.

]]> By: UPScholarship http://scienceadvocacy.org/Blog/2010/02/07/2010-canadian-taxes-did-you-get-your-t2202-and-t4a/comment-page-1/#comment-3025 UPScholarship Mon, 29 Nov 2010 14:25:52 +0000 http://scienceadvocacy.org/Blog/?p=246#comment-3025 Very interesting topic. I'm canadian and i love to read this. I know better now about tax! Thanks for great share Dave Very interesting topic. I’m canadian and i love to read this. I know better now about tax! Thanks for great share Dave

]]> By: Larry Antoinette http://scienceadvocacy.org/Blog/2010/02/07/2010-canadian-taxes-did-you-get-your-t2202-and-t4a/comment-page-1/#comment-3024 Larry Antoinette Mon, 29 Nov 2010 14:23:59 +0000 http://scienceadvocacy.org/Blog/?p=246#comment-3024 @Andrew : Maybe we have to hide our fellowship maybe? Is that cheating? But its not fair :D @Andrew : Maybe we have to hide our fellowship maybe? Is that cheating? But its not fair :D

]]> By: Andrew Mitchell http://scienceadvocacy.org/Blog/2010/02/07/2010-canadian-taxes-did-you-get-your-t2202-and-t4a/comment-page-1/#comment-3023 Andrew Mitchell Mon, 29 Nov 2010 14:21:32 +0000 http://scienceadvocacy.org/Blog/?p=246#comment-3023 Thanks for the suggestions, Dave. I'm waiting for your updates! Winning a fellowship decreases your income >>> I think this is silly too! -_-a Maybe someone can explain it cleanly? Thanks for the suggestions, Dave.
I’m waiting for your updates!
Winning a fellowship decreases your income >>> I think this is silly too! -_-a
Maybe someone can explain it cleanly?

]]> By: Gloria http://scienceadvocacy.org/Blog/2010/02/07/2010-canadian-taxes-did-you-get-your-t2202-and-t4a/comment-page-1/#comment-598 Gloria Thu, 08 Apr 2010 20:56:18 +0000 http://scienceadvocacy.org/Blog/?p=246#comment-598 I do believe there is a class action filed against the CRA, on right now. I saw it on line. There is also to be, a petition to dissolve the CRA. You may want to check the information out. I do believe there is a class action filed against the CRA, on right now. I saw it on line. There is also to be, a petition to dissolve the CRA.

You may want to check the information out.

]]> By: Chris http://scienceadvocacy.org/Blog/2010/02/07/2010-canadian-taxes-did-you-get-your-t2202-and-t4a/comment-page-1/#comment-531 Chris Thu, 25 Mar 2010 05:56:34 +0000 http://scienceadvocacy.org/Blog/?p=246#comment-531 I would definitely be interested in a class-action suit. If the CRA had been clear about this, I could have negotiated with my PI (I have an NSERC PDF in the US) an appropriate supplement to my salary so that I'm not effectively punished for receiving this award (it amounts to a $6000/year pay cut which is unbearable in the SF Bay Area when you're supporting a family). I would definitely be interested in a class-action suit. If the CRA had been clear about this, I could have negotiated with my PI (I have an NSERC PDF in the US) an appropriate supplement to my salary so that I’m not effectively punished for receiving this award (it amounts to a $6000/year pay cut which is unbearable in the SF Bay Area when you’re supporting a family).

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