Teacher that worked and lived in Ontario then moved to Quebec and became a teacher

[Spidersan]

Hi,

My gf was a teacher from Jan 1 2021 to July 1 2021 in Ontario which she received a T4. During this time, she was working a second job at Starbucks in Ontario from Jan 1 - Dec 31 2021 and got the T4 for that. However, in May 2021 she moved to Quebec and only found a teaching position in Quebec for Dec 2021 and received a RL-1 for. Now when I fill in her taxes, it's saying that she owes Quebec close to $3K and Fed $600. How is this possible? Her main source of income from the Ontario teaching was from Jan - July and only 2 months did she live in QC while working in Ontario (May-June) and worked in Quebec only in Dec 2021. I read somewhere that it might have to do with withheld income tax that i'm not calculating? Any assistance would be grateful.

 

Thanks

[TheTaxSmith]

Hello Spidersan. Basically she will be taxed in the Province of residency as at 31 December even if she only worked there for one month. Look to see if there is Federal tax deducted that is being transferred to the Quebec return. That is the usual situation. Also since she worked separately from her teaching job she may have not been placed in the correct tax withholding bracket. So perhaps not enough tax was deducted by Starbucks based on all the income she was actually earning. On top of that Quebec taxes can be higher than Ontario taxes, so it is what it is.