Tax Tips: Employed Abroad? Your Tax Refund Could Be Bigger

Taxpayers who performed services outside Canada for more than six consecutive months during 2015, for either a qualifying Canadian employer or a Canadian-owned foreign affiliate, will qualify for a special tax credit.

In fact, it’s quite lucrative, but its benefits have been phasing out recently, so use it before you lose it. The Overseas Employment Tax Credit was on 40% of income up to $40,000 last year. This year it’s 20% of income up to $20,000. The credit will be phased out by 2016.

If you forgot to make the claim it’s possible to reach back and recover it with an adjustment to prior years’ returns. In fact, you can go back up to 10 years. See a tax professional for more information and check out Form T626 for details.

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Additional Educational Resources: Family Tax Essentials by Evelyn Jacks  and T1 Professional Tax Preparation – Basic course.

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