We put the youngest of our children on a plane week before last. Destination, Grande Prairie. Campbell River is the only home he has ever known and he was fully-employed. Still, the allure of bigger money to work in the oil and gas industry was too much to ignore for an 18 year old.
On first count, he was to join 3 friends with the same company. Last time we heard there were 7. All grew up here. More are rumoured to follow. Combined with those in Fort McMurray and other destinations north and east and there will be plenty of unoccupied seats at Christmas dinner this year.
I googled Grande Prairie. Closing in on 60,000 residents it has all the amenities one requires. Still, questions to consider. Will their credit unions accept his ATM card? How long will he be covered under our medical? When does he become a resident? How does that affect a tax return? Can a tax professional here prepare his return?
I checked out CRA's website but couldn't find exactly what I was looking for so I phoned Faye Reynen. She confirmed that they and other firms are quite familiar with tax returns for a transient workforce.
My second query was on moving expenses. I was provided a link to the form and upon review found that tracking was either detailed or simplified. I was told to keep airfare receipts now to be tracked with his 2013 tax return. A more permanent (and expensive move) would likely mean moving expenses will be claimed in 2014. However, only 1 claim can be submitted.
No need to track his personal thermal gear should the company not provide. As an employee, he is given an automatic (2013-$1025) deduction.
In addition, the Northern Living allowance still exists. You either fit into zone A (claim 100%) zone B (claim 50%) or don't fit. Grande Prairie is zone B. Not a huge windfall but no point leaving dollars on the table.
Just wondering when the best time to let him know that beginning an RRSP in 2014 would lessen the bite of income taxes owed for the year. Down the road he can withdraw up to $25,000 tax free under the Home Buyer's Plan or up to $20,000 under the Lifelong Learning Plan.
On second thought, let's wait until after the first paycheque is received.