ForumTitleContentMemberSexCountryDate/Time
CanadaK3 but Mtl changed it to CR-1! confused!
Did your I-130 got approved. Have you gotten stuff from NVC and been sending it back... Sorry, but once that's done, the Consulate will not proceed with the K-3, they have to go with the CR-1.
zyggyNot TellingCanada2007-11-29 15:27:00
CanadaFlying to US -- border tips please
oink... oink... oink...

If you keep on having that attitude about the people whose job it is to protect the borders, I can guarantee that you will have problems...
zyggyNot TellingCanada2007-12-05 14:02:00
CanadaCrossing the Border while Visa App Pending
QUOTE (thermophile @ Dec 5 2007, 12:53 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Dec 5 2007, 03:35 PM) <{POST_SNAPBACK}>
This is not true. The deadline for the implementation of WHTI for land borders (the thing that requires passports to enter the US) was extended to April 30, 2009. On Jan 1, proof of citizenship (such as a BC) and photo ID will be required of all travelers at land borders.


really? I thought that bc as proof of citizenship had been required for years. I didn't realize that you could (theoretically) cross the border without any proof of citizenship right now.



Nope.. CBP officers have been permitted by law to accept an oral declaration of citizenship within the WHTI area since... well.. forever... but could always require proof if they wished. As of Jan 31, officers will no longer have that discretion by law... believe me.. my old colleagues in the CBP are dreading this day... as it quite honestly hasn't been well publicized...

However, some posts have implemented a policy in the last few years (really since 9/11) requiring the documents at primary inspection and if they didn't have them to send them to secondary and let them deal with it... which honestly isn't a pleasant experience... but it least it would make you remember to bring the stuff from then on...

However, after Jan 31, no documents.. no entry... period...

trailmix.. read what it says... a WHTI compliant document (passport, NEXUS card, etc.) OR (note the or) DL and BC... just like I stated... in I guess a roundabout way... smile.gif

By April 2009, a WHTI compliant document is all that will be permitted...

Edited by zyggy, 06 December 2007 - 05:46 PM.

zyggyNot TellingCanada2007-12-06 17:33:00
CanadaCrossing the Border while Visa App Pending
QUOTE (Dylan @ Dec 5 2007, 12:03 PM) <{POST_SNAPBACK}>
QUOTE (jenmac75 @ Dec 5 2007, 12:43 PM) <{POST_SNAPBACK}>
Hi Everyone,

I know there are many posts here regarding crossing into the States while you have your application pending and making sure you can prove ties to Canada etc. My question is this - has anyone tried to cross using their birth certificate as ID while the U.S. Consulate has your passport for Visa processing???

I had my interview in October and needed a police clearance from New Zealand (which Montreal finally received last week - yay!) but I had to send in my passport so they could issue the visa. Montreal now has my passport and are apparently "reviewing" my file. Of course they provide no timeline and I'm worried that I won't get my Visa before Christmas. I'm wondering if I should risk visiting over the holidays if the visa doesn't come through but I certainly don't want anything to jeopardize my visa application at this late stage.

Any advice would be appreciated.

Thanks!


I doubt they will allow you entry.
As of Jan 1 2008 a passport is required to cross the boarder by land so I imagine you will need it to re-enter Canada.
But- I do hope that you get your visa before then and none of this will matter . Good luck smile.gif



This is not true. The deadline for the implementation of WHTI for land borders (the thing that requires passports to enter the US) was extended to April 30, 2009. On Jan 1, proof of citizenship (such as a BC) and photo ID will be required of all travelers at land borders.

Edited by zyggy, 05 December 2007 - 02:35 PM.

zyggyNot TellingCanada2007-12-05 14:35:00
CanadaCrossing the Border while Visa App Pending
QUOTE (thermophile @ Dec 5 2007, 10:57 AM) <{POST_SNAPBACK}>
yeah my husband crossed a few months ago while Mtl had his passport. it wasn't really a problem. Just as a reminder-you can't fly without a passport, but driving across the border with just a bc is still ok.



Just to note, oral declarations of citizenship will no longer be permitted by CBP after Dec 31. (although most posts have implemented some sort of no oral declaration policy on their own) However, at the land border, BC and DL is fine until the WHTI goes into effect by 2009. WHTI is already in effect for flying, so a valid passport is required.

Edited by zyggy, 05 December 2007 - 02:01 PM.

zyggyNot TellingCanada2007-12-05 13:59:00
CanadaPassport Requirement at Land Borders now June 2009
My old friend from CBP was one of those chosen to go to Washington for TDY duty at headquarters to figure out how they were going to pull it off. After 6 months, they came up with something but they all realized that it would be one of the biggest headaches ever... an almost impossible feat with all the traffic the land border has.

They're going to need longer than 2009 I think...
zyggyNot TellingCanada2007-12-21 12:24:00
CanadaAwaiting AOS w/promised work back in Canada?
QUOTE (Doug n Amanda @ Jan 3 2008, 01:59 PM) <{POST_SNAPBACK}>
QUOTE (Krikit @ Jan 3 2008, 01:30 PM) <{POST_SNAPBACK}>
I'm always dismayed by judgemental responses to innocent questions or comments.

Amanda, there is nothing wrong with him keeping his job in Canada. Living close to the border you see it all the time. People on both sides do it for both school and work, as well as myriad other reasons. Very normal circumstance. Once Doug gets his GC he's good to go without a problem. The problem pre-GC will be exactly as you see above.


Thanks, Krikit....I appreciate all the help! We know it'll all be good with the GC, but as we all know, that can be a LONG wait! We'll do what we have to to be together (which is what the judgemental responses fail to realize I guess)....

QUOTE (~Laura and Nick~ @ Jan 3 2008, 01:31 PM) <{POST_SNAPBACK}>
Wishing you and Doug all the best smile.gif

Thanks! And congrats on the formal engagement! Can we see the ring? Can we? Can we? star_smile.gif

QUOTE (Jeremy + Kristy @ Jan 3 2008, 02:54 PM) <{POST_SNAPBACK}>
Hey guys, we filed a day after you two.

Anyway, why not maybe check in with the FAST office? That would probably be the best way to get an answer from the horses mouth. I think I remember you saying that Doug had a FAST and a NEXUS pass, and you have NEXUS.


Hey Kristy...glad to hear from you again. The FAST office is a good idea; not sure if he checked it out or not yet....thanks!


I am not being judgemental.. I am merely staing the facts... Amanda and Doug asked many questions to this board and to me personally about this very issue and freely chose the path that they are on... As a former CBP officer, I have heard many people try to plead their way out of circumstances that they placed themselves in through their own decisions... I can tell you that the CBP does not have much sympathy for self-inflicted pain...

Those on AP are not eligible for FAST or NEXUS... If you are caught using these lanes while on AP, you will lose the privilege of using these systems forever. and in a business where time equals money, that could pose some problems for him...

Look at it this way, if you have to talk yourself into something... it probably isn't the best thing to do... better to follow your first instinct.

The AOS will happen sooner than you think... I know that it is hard, but in this case, patience is truly a virtue...

Edited by zyggy, 04 January 2008 - 09:38 AM.

zyggyNot TellingCanada2008-01-04 09:31:00
CanadaAwaiting AOS w/promised work back in Canada?
This has been discussed before and you and Doug knew this would happen (he couldn't work). If this was a problem, then there were other visa routes that were presented and you could have chosen to avoid this problem...

AP is not meant for daily commutes... whether he could work in Canada without an EAD is a gray area and you could hear pinions either ay on the subject and most likely both could be argued and defended, but what you suggest could be interpreted as skirting the intent of the status upon which he entered...

Edited by zyggy, 03 January 2008 - 10:34 AM.

zyggyNot TellingCanada2008-01-03 10:31:00
CanadaUS Citizen to bring car from USA TO Canada
CHeck out the registrar of imported vehicles...

www.riv.ca
zyggyNot TellingCanada2008-01-30 13:09:00
CanadaFiling 2006 Canadian Income Taxes
QUOTE (Allie @ Jan 31 2008, 11:40 AM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Jan 31 2008, 11:54 AM) <{POST_SNAPBACK}>
QUOTE (Allie @ Jan 30 2008, 03:10 PM) <{POST_SNAPBACK}>
QUOTE (Allie @ Jan 30 2008, 04:47 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Jan 30 2008, 03:24 PM) <{POST_SNAPBACK}>
QUOTE (Allie @ Jan 30 2008, 12:05 PM) <{POST_SNAPBACK}>
Ziggy can you give me some info.

My scenario: I collect a work retirement pension which is administered by a Canadian Financial Institution and paid monthly into my bank account in Canada.

I entered the U.S. in June on a K1, married in July.

1. Does Lorry show on her return the pension payments made only since I've been here or does she show the retirement pension earnings paid for the whole year?

2. Do I, on my Canadian return claim the whole yr. of payments or only the part of the yr. I resided in Canada?

3. As this pension will continue to be paid in the coming yrs as earned and administered in Canada am I required to fill out a Canada Tax form each yr.

4. Will I need any type of forms other than the regular Taxation ones

I appreciate any advice and info you can give us on this as this tax yr. is very confusing to me smile.gif

Thanks
Allie



The bank should be taking 25% non-resident tax directly out of the proceeds of the pension. If this is done, then you do not need to file with CRA after this year. If it is beig done, you should notify your bank of your US address. They will then only take out the non-resident tax..

For this year, you will have to file a Leaving Canada return with CRA. You have a choice... You can report the income made up to the date that you left Canada, or you can file a Section 217 return and report all of the worldwide income you made. Do it both ways and choose the method that is most to your advantage.


You are going to have to report this income to the IRS. The proceeds of your pension should be reported as other income. THe payments before you came to the US can be excluded vis form 8555.. for the proceeds after you came to the US, you will need to file for a foreign tax credit using Form 1116, but it may be more advantageuos for you to take a foreign tax credit for all the money that you made from the pension all year and not to take the exclusion now that the CAD is close to par with the USD.

After this year, you will need to continue to report your proceeds of your pension as other income and take a foreign tax credit for the non-resident tax that Canada takes.



Thank you Ziggy. This is everything I was wanting to know and makes this tax thing a bit easier I forgot to add where does this 25% non resident tax they're going to continue taking in Canada each yr. after I file this yr go. Would I get a tax credit from Canada for the extra 10% they're going to be takin every yr.



Canada takes out a 25% non-resident tax... there is no return required for it.. it is a flat tax taken right off the top... However, you can optionally file a T1 under Section 217 to the International Tax Services Office to see if you can get some of that non resident tax back. You would have to report your worldwide income then.. http://www.cra-arc.g...145/README.html

The IRS will give you a tax credit up to the amount that it would be taxed in the US. The remainder can be carried over into future years if necessary but you do not get it back as a refund.



Thank you Ziggy for your answers to my questions. This all explains my tax situation very well and is very, very helpful



You're very welcome.. glad to be of service smile.gif
zyggyNot TellingCanada2008-01-31 17:43:00
CanadaFiling 2006 Canadian Income Taxes
QUOTE (Allie @ Jan 30 2008, 03:10 PM) <{POST_SNAPBACK}>
QUOTE (Allie @ Jan 30 2008, 04:47 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Jan 30 2008, 03:24 PM) <{POST_SNAPBACK}>
QUOTE (Allie @ Jan 30 2008, 12:05 PM) <{POST_SNAPBACK}>
Ziggy can you give me some info.

My scenario: I collect a work retirement pension which is administered by a Canadian Financial Institution and paid monthly into my bank account in Canada.

I entered the U.S. in June on a K1, married in July.

1. Does Lorry show on her return the pension payments made only since I've been here or does she show the retirement pension earnings paid for the whole year?

2. Do I, on my Canadian return claim the whole yr. of payments or only the part of the yr. I resided in Canada?

3. As this pension will continue to be paid in the coming yrs as earned and administered in Canada am I required to fill out a Canada Tax form each yr.

4. Will I need any type of forms other than the regular Taxation ones

I appreciate any advice and info you can give us on this as this tax yr. is very confusing to me smile.gif

Thanks
Allie



The bank should be taking 25% non-resident tax directly out of the proceeds of the pension. If this is done, then you do not need to file with CRA after this year. If it is beig done, you should notify your bank of your US address. They will then only take out the non-resident tax..

For this year, you will have to file a Leaving Canada return with CRA. You have a choice... You can report the income made up to the date that you left Canada, or you can file a Section 217 return and report all of the worldwide income you made. Do it both ways and choose the method that is most to your advantage.


You are going to have to report this income to the IRS. The proceeds of your pension should be reported as other income. THe payments before you came to the US can be excluded vis form 8555.. for the proceeds after you came to the US, you will need to file for a foreign tax credit using Form 1116, but it may be more advantageuos for you to take a foreign tax credit for all the money that you made from the pension all year and not to take the exclusion now that the CAD is close to par with the USD.

After this year, you will need to continue to report your proceeds of your pension as other income and take a foreign tax credit for the non-resident tax that Canada takes.



Thank you Ziggy. This is everything I was wanting to know and makes this tax thing a bit easier I forgot to add where does this 25% non resident tax they're going to continue taking in Canada each yr. after I file this yr go. Would I get a tax credit from Canada for the extra 10% they're going to be takin every yr.



Canada takes out a 25% non-resident tax... there is no return required for it.. it is a flat tax taken right off the top... However, you can optionally file a T1 under Section 217 to the International Tax Services Office to see if you can get some of that non resident tax back. You would have to report your worldwide income then.. http://www.cra-arc.g...145/README.html

The IRS will give you a tax credit up to the amount that it would be taxed in the US. The remainder can be carried over into future years if necessary but you do not get it back as a refund.

Edited by zyggy, 31 January 2008 - 12:01 PM.

zyggyNot TellingCanada2008-01-31 11:54:00
CanadaFiling 2006 Canadian Income Taxes
QUOTE (Allie @ Jan 30 2008, 12:05 PM) <{POST_SNAPBACK}>
Ziggy can you give me some info.

My scenario: I collect a work retirement pension which is administered by a Canadian Financial Institution and paid monthly into my bank account in Canada.

I entered the U.S. in June on a K1, married in July.

1. Does Lorry show on her return the pension payments made only since I've been here or does she show the retirement pension earnings paid for the whole year?

2. Do I, on my Canadian return claim the whole yr. of payments or only the part of the yr. I resided in Canada?

3. As this pension will continue to be paid in the coming yrs as earned and administered in Canada am I required to fill out a Canada Tax form each yr.

4. Will I need any type of forms other than the regular Taxation ones

I appreciate any advice and info you can give us on this as this tax yr. is very confusing to me smile.gif

Thanks
Allie



The bank should be taking 25% non-resident tax directly out of the proceeds of the pension. If this is done, then you do not need to file with CRA after this year. If it is beig done, you should notify your bank of your US address. They will then only take out the non-resident tax..

For this year, you will have to file a Leaving Canada return with CRA. You have a choice... You can report the income made up to the date that you left Canada, or you can file a Section 217 return and report all of the worldwide income you made. Do it both ways and choose the method that is most to your advantage.


You are going to have to report this income to the IRS. The proceeds of your pension should be reported as other income. THe payments before you came to the US can be excluded vis form 8555.. for the proceeds after you came to the US, you will need to file for a foreign tax credit using Form 1116, but it may be more advantageuos for you to take a foreign tax credit for all the money that you made from the pension all year and not to take the exclusion now that the CAD is close to par with the USD.

After this year, you will need to continue to report your proceeds of your pension as other income and take a foreign tax credit for the non-resident tax that Canada takes.

Edited by zyggy, 30 January 2008 - 03:29 PM.

zyggyNot TellingCanada2008-01-30 15:24:00
CanadaFiling 2006 Canadian Income Taxes
QUOTE (G&A @ Jan 30 2008, 12:41 AM) <{POST_SNAPBACK}>
Zyggy, Wife is Canadian and has lived and worked in Canada all of 2007. No GC. She got her K3 visa last week and is moving to the US shortly.

For the Federal taxes, it looks MFJ is the way to go for me but with FTC (1116) instead of exclusion (2555). Based on your feedback, we will Canadian taxes first and then file US taxes to make sure the actual Canadian tax figure used in the FTC calcs. (anyways, it looks like i will have some FTC carryover for next year and she worked in Canada 1 month in 2008, we will going thru again next year). Since the taxes she owe for 2007 would not be equal to the taxes withheld in cash during the 2007 period, i would have guessed that you would have to use the accrue method as it reflect the actuals taxes accrued thoroughout the year.

regarding 3) above, why can't i take FTC for the EI taxes paid by her in addition to the CPP taxes paid?

Regarding CA taxes, i made some progress. I spoke with the FTB (tax board) and they told me to file 540NR and exclude all her income (it is like doing the 2555 for the fed taxes).

Since she does not have a social, my understanding is that i need to file a W-7 app. for ITIN with the 1040. Not sure what to do for the state 540NR. need to call them again.


thanks a million!


IRS does not consider what you pay into EI as a tax. They consider it a premium for unemployment insurance. A big difference in their eyes.

Yes, you will need to file a W-7 for her. I don't know what California would require, but they sometimes allow you to put 'pending' with a copy of the W-7. But check with them to see how they want to treat it.

Accrual accounting method is used for businesses. For example, if you used accrual method, you would have to calculate the amount of tax she made each day she worked, instead of when it was actually paid. For individuals, we do our account based on the date that we were paid, not on the time that was worked. So for the end of they year, I may have worked the time in 2007 but was paid for that work in 2008. FOr the cash accounting system (which is what individuals use) that income is counted as being earned in 2008, since that is when you were paid for that work. Individuals use cash method of accounting, don't confuse yourself too much.
zyggyNot TellingCanada2008-01-30 13:24:00
CanadaFiling 2006 Canadian Income Taxes
QUOTE (Len_and_Bren @ Jan 29 2008, 07:39 PM) <{POST_SNAPBACK}>
Woohoo! Since zyggy is back, here go my load of questions...... unsure.gif

We lived in Canada and the US in the past year (we DCF'ed); and were a one-income household. I have no idea how to begin... I asume we file then both in Canada AND here, right?

Now since only I was working, we file married filing jointly in the US; how about Canada? Does Bren need to file if he didn't have income? Do tell.

I get all confused with this stuff - happy to have you around!!!!!! good.gif



All Canadians leaving Canada must file a Leaving Canada return with CRA even if they made nothing. If you were living in Canada as well, you both must submit leaving Canada returns to CRA. Check out the Emigrant and Taxes guide on the CRA website that is mentioned earlier on this thread.

Yes, you both must submit 1040's to the IRS as well as you got your PR status upon entry to the US. If you're a single income household, it would most likely benefit you to file in the manner that is outlined on this thread. That is using Form 2555 to exclude the income that you made in Canada to take a foreign tax credit on your Canadian income by Form 1116.
zyggyNot TellingCanada2008-01-30 13:17:00
CanadaFiling 2006 Canadian Income Taxes
QUOTE (G&A @ Jan 28 2008, 01:16 AM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Mar 28 2007, 05:32 AM) <{POST_SNAPBACK}>
Actually no... your US spouse can opt to treat you as a resident alien for the entire tax year and you can file a joint return. You would have to report your Canadian income on Line 7 of your US 1040, but you can subsequently exclude your foreign income by filing Form 2555 and subtracting out your foreign income on Line 22 (unless you made over $82,400 last year)... so your joint AGI would be the same as your husband's AGI if he filed separately...

However, you'll be able to take an additional $3,300 personal exemption for you as well as claim the larger $10,300 standard exemption... doing this could result in a larger refund in line with about $1,500 to $2,000...

Filing as married filing separate puts you at a huge disadvantage in terms of deductions and other ways of figuring your tax (higher tax table, putting you in a higher tax bracket, etc...)... don't file it unless absolutely necessary... US Taxes are not like Canadian Taxes where it doesn't matter.. each person does their own... the IRS wants married couples to file joint and put in penalties if they don't... there are isolated and special instances where filing separate makes sense, but your situation isn't one of them...

To make the option, he will have to file a statement with his US Tax Return and send it by mail to his Service Center. If you don't have a SSN, he'll have to file a W-7 to get you an ITIN as well. If you have RRSP's, you'll have to file a 8891 with your return to defer the taxes paid on the amount you esarned in your RRSP... you just check off boxes 6a and 6c and file the form with your return...



Editing previsous item... Did not allow me to edit actual post.

Zyggy, Thank you for your help. I have a few questions. I spend most of the day working on our taxes. I learned a lot but also generated a lot more questions.

Before i ask my questions, i have a comment on the above based on what i've learned today. Using Form 2555, i sm able to deduct all the income my spouse (the Canadian) made in 2007 so the AGI for the joint return is not increased by her income. The problem was in the way the actual taxes were computed. It turns out, that although her income does not impact my AGI, it does increase my taxes substantially. Say I made 100K and she made 50K. Let's ignore deduction and exemptions for now. AGI would be 100K (since her income is excluded using 2555). But taxes are calculated by computing the tax on the whole 150K and then computing the tax on just the 50K and subtracting the two. This is very different than computing the tax on net 100K AGI due to the effect of the higher tax brackets on the higher income. I was surprised to see this and I am not sure I understand the reason behind it. Note that the taxes computing for the 50K income are less than the taxes paid on the 50K in Canada so i figured i'd try the foreign tax credit method so i can deduct most if not all of the taxes paid on the 50K in Canada.


Now to my questions. Some background: I am the USC. Wife is the Canadian citizen. We are choosing to file our federal taxes as 'Married Filing Jointly' and we are also using the Foreign Tax Credit method to minimize double taxation. All wife income in 2007 is from Canada. Wife was in Canada for more than 330 days. She is electing to be a US resident for tax purposes (married to a USC).

1) Since my wife does not have a W-2, i just looked at her 12/31/07 paycheck to extract her YTD gross income. Is this right?
2) I used the YTD Canadian Federal Income Tax to claim in From 1116. Since i am extracting the tax amount from the paycheck, it is not the actual tax owed in 2007. Does my wife need to file her Canadian taxed first before i compute the US tax credit?
2a) Will the tax accrued vs. the cash paid method come into play here when i look at how much she paid in taxed vs how she really owed? Form 1116 Lines 7h and 7i.
3) My wife pays CPP, EI and Manulife (ins). Do these figures come into play on the 1040?
4) Her employer pays Prov. Health, Pension, and Manulife. Will these come into play at all?
5) Form 1116: Should i go for the Simplified Foreign Tax Credit election? and are there any implications for using the simplified method for future tax years?
6) Form 1116: Is the type of income "income re-sourced by a treaty" or just "general category income"? she has a regular job in Canada.
7) Form 1116 Part II: It asks for the dates foreign taxes were paid/accrued. Since tax were deducted bi-weekly, what date should i put?
8) Form 1116: Can I claim Canadian deductions?
9) Form 1116: beginning part. It asks for Resident of country. Should i put Canada or USA since wife is claiming her self as US resident for tax purposes?


Now i have to figure out California taxes. Initial research indicates i am better of filing as MFS since i do not want to pay state taxes on her income. there is an exception that allows you to file state MFS although the federal is MFJ since her home (domicile) was not in California. The complexity then becomes the whole community property issue. Maybe a good thing if it allows me to cut my income in 1/2.

thanks!



0) Was your spouse in Canada for all of 2007? Does she have a GC but was still living in Canada... THe answers to these questions are important. If she was in Canada for all of 2007 and was not a GC, then she does not have a requirement to file, you can file as married filing seperate or exercise your option for her to be treated as a US tax resident for all of 2007 and file joint. In your case, you choose the case that gives you the biggest refund or the lowest amount of taxes you need to pay.. Typically the increases in standard deductions that you get for being married filing joint make up for the difference in taxes for the 2555. But as incomes get bigger, I can see how that advantage may evaporate, especially now that the currencies are near par...

1) Yes, you use either the amount on her T4 or from her last paycheck for her year to date earnings. Either is fine and it is on the honor system..

2) You have a choice.. you can use the amount that was taken out of her check and file now... but realize that you would have to treat the difference as income the following year... (basically adding it back in). Or you can wait to file the Canadian return and use that number.

2a) Individuals always use the cash method of accounting...

3) CPP does... the others don't

4) These amounts are not included

5) To do simplified, your foreign taxes cannot be more than $300, I assume that your wife has paid more than that..

6) General

7) Using the word "various" is fine

8) Yes to a certain extent... see the instructions for the form

9) In this case, they are asking for the country in which she was actually resident. THe option to include her in your taxes is at your option. FOr ths form it would be Canada

Agreed.. I would look into filing your CA taxes as married filing single.
zyggyNot TellingCanada2008-01-29 13:59:00
CanadaFiling 2006 Canadian Income Taxes

exactly!! You have read on here, that some put in thweir USA spouses income, but that is only done if if ur using a software program to "fool" the tax program to ensure it doesnt give u any credits/deductions for ur spouse, as he isn't entitled to any!!

This thread is confusing since it strayed to filing US taxes as well ;)

I think I got it now, I only put him on page 1, don't include any of his income and don't claim any spouse credits.

Anyone want $20 via Paypal to make sure I've done this right :D
I had no property, no RRSPs, no kids, small income from working in Canada until March 2006 and then EI while in the States, the amount of paperwork in unreal for 3 months of residency.

**I must be doing something wrong, my income including EI was $18,000. I've done a rough draft of the return and it says I owe over $1000.
There is no "premium" tax service here, we're in the middle of nowhere. Is there something online I can purchase that can do this for me?



Remember, your EI income is not placed on your T1 unless you are filing a Section 217 return. If you want to send me your return before you file it for me to look it over, feel free to drop me a line... Remember, there is no efiling of a Leaving Canada return.

Awww phooey! I included it and it's been mailed already. :angry: I didn't do a section 217 either.
How messy is this going to be and can I fix it?


Too late now.. Hopefully the International Tax Services office will catch it and make note of it during your asssessment. You have to wait until the return is assessed now..
zyggyNot TellingCanada2007-05-02 17:46:00
CanadaFiling 2006 Canadian Income Taxes

exactly!! You have read on here, that some put in thweir USA spouses income, but that is only done if if ur using a software program to "fool" the tax program to ensure it doesnt give u any credits/deductions for ur spouse, as he isn't entitled to any!!

This thread is confusing since it strayed to filing US taxes as well ;)

I think I got it now, I only put him on page 1, don't include any of his income and don't claim any spouse credits.

Anyone want $20 via Paypal to make sure I've done this right :D
I had no property, no RRSPs, no kids, small income from working in Canada until March 2006 and then EI while in the States, the amount of paperwork in unreal for 3 months of residency.

**I must be doing something wrong, my income including EI was $18,000. I've done a rough draft of the return and it says I owe over $1000.
There is no "premium" tax service here, we're in the middle of nowhere. Is there something online I can purchase that can do this for me?



Remember, your EI income is not placed on your T1 unless you are filing a Section 217 return. If you want to send me your return before you file it for me to look it over, feel free to drop me a line... Remember, there is no efiling of a Leaving Canada return.

Edited by zyggy, 30 April 2007 - 08:36 AM.

zyggyNot TellingCanada2007-04-30 08:35:00
CanadaFiling 2006 Canadian Income Taxes

Okay.. this makes a little more sense...

1) Yes.. you do have to include your EI income on your US income taxes that was earned in 2006... However, you can get a Foreign Tax Credit for the 25% non-resident tax that Canada takes... File Form 1113 to get the credit on your 1040..

2) Were your investments in an RRSP... if so, you would have to file Form 8891 the amount to place on the 1040...

3) Any earned income that you earned in 2006 while you were still in Canada is excludable.. You use Form 2555 to exclude the income...

ANy other questions, ask away...


Zyggy,

Well, I booked an appointment with H&R Block. I asked if they did cross border income tax, and there happens to be a Canadian specialist. Sure hope so. I think our US taxes will have to be completely redone. Good thing they weren't mailed out yet.

1) I'm so glad they weren't mailed out. The T4E wasn't put on the US taxes. btw you mentioned form 1113 to be filled out. Is that the form number or is it 1116?
2) The investment I got the N4 for are non-registered and not RRSP. Is there a specific form that would go with that?? Also, I do have RRSPs, am I supposed to be getting something for that?
3) I also didn't think that the income I made while still in Canada had to be put on the 1040 at all, excludable or not. I sure hope that H&R Block lady knows what's she's doing.

No more questions for now. I will let H&R do the work now. I thank you very much for the help. I really do appreciate it. Take care :)



Ok, Zyggy. Me again. I'm thinking I should start a new topic about filing 2006 USA Income Taxes.

Here's a recap. I am the Canadian Citizen, my husband the US citizen. He has never lived in Canada. I moved here June 24th of 2006. Got my green card in September. I worked in Canada from Jan to June 2006 (earning way less than 80000 dollars a year). I received EI benefits only since being in the States. I ended up having to go in Canada to do my Canadian taxes (which is fine) and am having my (our) US taxes done by H&R Block in the states. Now, after going back and forth with this lady, she did our taxes and says it's better for us to do them married but separately because we would be getting more back. In doing them separately, she is NOT adding my EI income on the taxes and she is not filling out a form 2555 because she said I either have to be a US citizen or have lived in the states for (I think she said) 360 days. But she did add my income to my husbands income putting him (us) in a higher bracket. So, my T4E is neither on my Canadian Income Tax or our US income tax. Now, I'm not comfortable with that at all. She said " I'd just sit on it". She did calculate the taxes both ways (joint and separate). I think she did form 1116 as joint, but with that we would have to owe more. So, is she supposed to do a 2555? Your help in this matter is greatly appreciated, thanks again.

ps I'm thinking of fedexing our income tax slips to wherever your office is, with a check included so you can do our taxes lol Really, seriously, I am.


Ok.. she's doing them all wrong.. but I'm not surprised...

1) You have to file a US return..

2) The money that you earned while you were still in Canada is excludable.. File Form 2555 to exclude the income that you made in Canada. The income that you made in Canada must be reported on Line 7 of your tax return. You ARE eligible to file the 2555 because you lived in Canada for 330 days in ANY 12 month period... it does NOT have to be in the current tax year... It could be 330 days from April 2005 to April 2006.. if that was the case, you can exclude the income in that period of time...

3) You must report the EI income that you made on Line 7 of your tax return as well, but you have to File a Form 1116 to take a foreign tax credit on the 25% non-resident tax that Canada takes on it... or you can take the entire 25% as an itemized deduction...

This may indeed be one of the cases where it would better to file seperately... but realize this.. if your husband itemizes his deductions, you must as well.. if you have 0 itemized deductions.. you'd be paying a lot in this case... or taking the 25% foreign tax as an itemized decution may work out better for you... I have a feeling that if you included your EI income.. filing separately may not look so good... Actually I think I can go out an a limb and say that you'd be paying quite a bit...

You are in a pretty complicated tax situation.. I know, I was there two years ago doing it with my wife... it is VERY important that you have someone that is extremely competent to handle it... If you have more questions, I am here to assist...



I don't know how to use only the last quote, so sorry about all the attached quotes.

I know nothing about income tax, but one thing I did know is that she was not right. And believe me, I will most likely have more questions after this one.

You say I have to file a US return. Do I have to file it even though I didn't work in the US? How about if we decide to file jointly, do I still have to do a US return?? Thank you so much for your help.


Since you are a permanent residident of the US, yes, you must file a US tax return... even if you earned no income here...

If you file jointly with your husband, you have filed a US tax return... That's why it's joint... (yours and your husband's).. the US is not like Canada where each spouse files their own return. In the US, it is preferred that married couples file jointly and they have put things in the US tax code to encourage that...
zyggyNot TellingCanada2007-04-06 11:50:00
CanadaFiling 2006 Canadian Income Taxes

There needs to be some simplified guide on how to file US taxes for new residents. I'm so confused with everyone's post.

Hopefully, someone can help me. In 2006, I worked in Canada for the first three months. Entered the US on April 1 with my Green Card. Collected EI from Canada for four months, and then was employed in the states for the last five months. Here's what I'm going to be doing:

1) Filing a 1040 jointly with my husband.
2) Submitting 2555 Foreign Income for the income I made in Canada for the first three months, as well as the EI income I received while living in the US.
3) Submitting 8891 for the RRSPs I cashed out and paid 25% non-resident taxes on.
4) Submitting a 1116 Foreign Tax Credit for the the taxes I paid to Canada and the 25% non-resident tax I paid when I collected EI and cashed in my RRSPs.

Have I got this done pat? Am I missing anything important?

Thanks,
SB


Sounds like you've got it covered... Your EI Income is NOT covered under the 2555... You have to report it as income on Line 7 and take the foreign tax credit on that as well..

You may want to consider filing a Section 217 return in Canada to get some of that 25% tax back... depending on the amount of the RRSP that you cashed out...
zyggyNot TellingCanada2007-04-06 08:06:00
CanadaFiling 2006 Canadian Income Taxes

Okay.. this makes a little more sense...

1) Yes.. you do have to include your EI income on your US income taxes that was earned in 2006... However, you can get a Foreign Tax Credit for the 25% non-resident tax that Canada takes... File Form 1113 to get the credit on your 1040..

2) Were your investments in an RRSP... if so, you would have to file Form 8891 the amount to place on the 1040...

3) Any earned income that you earned in 2006 while you were still in Canada is excludable.. You use Form 2555 to exclude the income...

ANy other questions, ask away...


Zyggy,

Well, I booked an appointment with H&R Block. I asked if they did cross border income tax, and there happens to be a Canadian specialist. Sure hope so. I think our US taxes will have to be completely redone. Good thing they weren't mailed out yet.

1) I'm so glad they weren't mailed out. The T4E wasn't put on the US taxes. btw you mentioned form 1113 to be filled out. Is that the form number or is it 1116?
2) The investment I got the N4 for are non-registered and not RRSP. Is there a specific form that would go with that?? Also, I do have RRSPs, am I supposed to be getting something for that?
3) I also didn't think that the income I made while still in Canada had to be put on the 1040 at all, excludable or not. I sure hope that H&R Block lady knows what's she's doing.

No more questions for now. I will let H&R do the work now. I thank you very much for the help. I really do appreciate it. Take care :)



Ok, Zyggy. Me again. I'm thinking I should start a new topic about filing 2006 USA Income Taxes.

Here's a recap. I am the Canadian Citizen, my husband the US citizen. He has never lived in Canada. I moved here June 24th of 2006. Got my green card in September. I worked in Canada from Jan to June 2006 (earning way less than 80000 dollars a year). I received EI benefits only since being in the States. I ended up having to go in Canada to do my Canadian taxes (which is fine) and am having my (our) US taxes done by H&R Block in the states. Now, after going back and forth with this lady, she did our taxes and says it's better for us to do them married but separately because we would be getting more back. In doing them separately, she is NOT adding my EI income on the taxes and she is not filling out a form 2555 because she said I either have to be a US citizen or have lived in the states for (I think she said) 360 days. But she did add my income to my husbands income putting him (us) in a higher bracket. So, my T4E is neither on my Canadian Income Tax or our US income tax. Now, I'm not comfortable with that at all. She said " I'd just sit on it". She did calculate the taxes both ways (joint and separate). I think she did form 1116 as joint, but with that we would have to owe more. So, is she supposed to do a 2555? Your help in this matter is greatly appreciated, thanks again.

ps I'm thinking of fedexing our income tax slips to wherever your office is, with a check included so you can do our taxes lol Really, seriously, I am.


Ok.. she's doing them all wrong.. but I'm not surprised...

1) You have to file a US return..

2) The money that you earned while you were still in Canada is excludable.. File Form 2555 to exclude the income that you made in Canada. The income that you made in Canada must be reported on Line 7 of your tax return. You ARE eligible to file the 2555 because you lived in Canada for 330 days in ANY 12 month period... it does NOT have to be in the current tax year... It could be 330 days from April 2005 to April 2006.. if that was the case, you can exclude the income in that period of time...

3) You must report the EI income that you made on Line 7 of your tax return as well, but you have to File a Form 1116 to take a foreign tax credit on the 25% non-resident tax that Canada takes on it... or you can take the entire 25% as an itemized deduction...

This may indeed be one of the cases where it would better to file seperately... but realize this.. if your husband itemizes his deductions, you must as well.. if you have 0 itemized deductions.. you'd be paying a lot in this case... or taking the 25% foreign tax as an itemized decution may work out better for you... I have a feeling that if you included your EI income.. filing separately may not look so good... Actually I think I can go out an a limb and say that you'd be paying quite a bit...

You are in a pretty complicated tax situation.. I know, I was there two years ago doing it with my wife... it is VERY important that you have someone that is extremely competent to handle it... If you have more questions, I am here to assist...

Edited by zyggy, 06 April 2007 - 08:02 AM.

zyggyNot TellingCanada2007-04-06 07:51:00
CanadaFiling 2006 Canadian Income Taxes
I'll take 25% of your increased refund :)... ok not really.. but glad to be of service...
zyggyNot TellingCanada2007-03-28 09:24:00
CanadaFiling 2006 Canadian Income Taxes

If your spouse is not resident in Canada, you do not include their income on the Canada T1. For their SIN you put US Citizen and include a statement in your return that your spouse is not a resident of Canada.



Difficult to find the equivalent of "married but separate" (mentionned above by reba) rule for US taxes, i search on behalf of my hubby (USC), he mentionned publications 501 and 519, did not finish to read the last and longer one; i reffered him to this thread but still is not clear for him...Anyone can guide us? as of where is the rule or section? Thanks.



You actually NEVER want to file as married filing seperate unless absolutely necessary (like you're separated and your wife is not playing ball)... your question is far too general to give you any specific guidance... please elaborate on what you want to do...



Now i'm more confused :)...i'm the beneficiary living in Canada, as i said, my hubby, living in US, can not find that info.for his US taxes....Ziggy, why "never"? file separate as we live separately now...or in other words...what and where to find the applicable rule for our situation? Of the research i began to do, i understand one can not file joint unles they live together in the US correct?...or, what qualifies to file joint or separate? the basics...and where to find this info in the instructions...that i can give it to my hubby...thanks a lot!



Actually no... your US spouse can opt to treat you as a resident alien for the entire tax year and you can file a joint return. You would have to report your Canadian income on Line 7 of your US 1040, but you can subsequently exclude your foreign income by filing Form 2555 and subtracting out your foreign income on Line 22 (unless you made over $82,400 last year)... so your joint AGI would be the same as your husband's AGI if he filed separately...

However, you'll be able to take an additional $3,300 personal exepmtion for you as well as claim the larger $10,300 standard exemption... doing this could result in a larger refund in line with about $1,500 to $2,000...

Filing as married filing separate puts you at a huge disadvantage in terms of deductions and other ways of figuring your tax (higher tax table, putting you in a higher tax bracket, etc...)... don't file it unless absolutely necessary... US Taxes are not like Canadian Taxes where it doesn't matter.. each person does their own... the IRS wants married couples to file joint and put in penalties if they don't... there are isolated and special instances where filing seperate makes sense, but your situation isn't one of them...

To make the option, he will have to file a statement with his US Tax Return and send it by mail to his Service Center. If you don't have a SSN, he'll have to file a W-7 to get you an ITIN as well. If you have RRSP's, you'll have to file a 8891 with your return to defer the taxes paid on the amount you esarned in your RRSP... you just check off boxes 6a and 6c and file the form with your return...

The publication you're looking for is Pub 519... http://www.irs.gov/p...p519/index.html

An excerpt

Nonresident Spouse Treated as a Resident
If, at the end of your tax year, you are married and one spouse is a U.S. citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U.S. resident. This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year.

If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. Neither you nor your spouse can claim under any tax treaty not to be a U.S. resident. You are both taxed on worldwide income. You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years.

Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. It should contain the following information.

A declaration that one spouse was a nonresident alien and the other spouse a U.S. citizen or resident alien on the last day of your tax year, and that you choose to be treated as U.S. residents for the entire tax year.

The name, address, and identification number of each spouse. (If one spouse died, include the name and address of the person making the choice for the deceased spouse.)

Resident Aliens
Resident aliens may be able to exclude the following items from their gross income.

Foreign Earned Income and Housing Amount
If you are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months, you may qualify for the foreign earned income exclusion. The exclusion is $80,000. In addition, you may be able to exclude or deduct certain foreign housing amounts. You may also qualify if you are a bona fide resident of a foreign country and you are a citizen or national of a country with which the United States has an income tax treaty. For more information, see Publication 54.


This publication was published for the 2005 tax year, the exclusion is $82,400 for the 2006 tax year

Edited by zyggy, 28 March 2007 - 07:48 AM.

zyggyNot TellingCanada2007-03-28 07:32:00
CanadaFiling 2006 Canadian Income Taxes

If your spouse is not resident in Canada, you do not include their income on the Canada T1. For their SIN you put US Citizen and include a statement in your return that your spouse is not a resident of Canada.



Difficult to find the equivalent of "married but separate" (mentionned above by reba) rule for US taxes, i search on behalf of my hubby (USC), he mentionned publications 501 and 519, did not finish to read the last and longer one; i reffered him to this thread but still is not clear for him...Anyone can guide us? as of where is the rule or section? Thanks.



You actually NEVER want to file as married filing seperate unless absolutely necessary (like you're separated and your wife is not playing ball)... your question is far too general to give you any specific guidance... please elaborate on what you want to do...
zyggyNot TellingCanada2007-03-27 07:57:00
CanadaFiling 2006 Canadian Income Taxes

For the Canadian taxes, you have to file a "Leaving Canada" return, you do this by doing a normal T1 and placing the date that you left Canada on the front page. You only have to inlcude the income that you made while you were in Canada, but your deductions have to be reduced by the time you were in Canada... You send the Leaving Canada return to the Internatioal Tax Services Office in Ottawa. Read the great guide Emigrants and Income Tax on the CCRA website. They give you tons of info...

http://www.cra-arc.g...56/t4056-e.html

For Provincial.. I assume that you previously lived in Quebec?...



Would the H&R Block rep be able to do the Canadian Taxes too?? And yes, you assume right. I lived in Montreal.


H&R Block in the US does not have access to the Canadian Tax Program as far as I know... I know we do not have access to it in our office... They may send your information to an office in Canada for that portion...
zyggyNot TellingCanada2007-03-21 08:52:00
CanadaFiling 2006 Canadian Income Taxes

Okay.. this makes a little more sense...

1) Yes.. you do have to include your EI income on your US income taxes that was earned in 2006... However, you can get a Foreign Tax Credit for the 25% non-resident tax that Canada takes... File Form 1113 to get the credit on your 1040..

2) Were your investments in an RRSP... if so, you would have to file Form 8891 the amount to place on the 1040...

3) Any earned income that you earned in 2006 while you were still in Canada is excludable.. You use Form 2555 to exclude the income...

ANy other questions, ask away...


Zyggy,

Well, I booked an appointment with H&R Block. I asked if they did cross border income tax, and there happens to be a Canadian specialist. Sure hope so. I think our US taxes will have to be completely redone. Good thing they weren't mailed out yet.

1) I'm so glad they weren't mailed out. The T4E wasn't put on the US taxes. btw you mentioned form 1113 to be filled out. Is that the form number or is it 1116?
2) The investment I got the N4 for are non-registered and not RRSP. Is there a specific form that would go with that?? Also, I do have RRSPs, am I supposed to be getting something for that?
3) I also didn't think that the income I made while still in Canada had to be put on the 1040 at all, excludable or not. I sure hope that H&R Block lady knows what's she's doing.

No more questions for now. I will let H&R do the work now. I thank you very much for the help. I really do appreciate it. Take care :)


Oh okay.. if it's not RRSP, then it would be reported on your US return as a normal Capital Gain on Schedule D... Take the Foreign Tax Credit on the Capital Gains that Canada took out though... And yes.. it's 1116... damn number pad...

When you have an RRSP, you have to get taxed on the amount of gain that is inside it. However, you can elect to defer getting taxed on it until you withdraw it. You make this election on Form 8891 as well. You need to know the amount in the account as of December 31...

Since you got your Green Card in September, you are considered to have been a resident alien for the entire tax year and therefore must report your worldwide income for that year on Line 7. However, you can exclude the income that was made in Canada by filing Form 2225 with your return up to $84,200. This amount is reduced ratio of the amount of time that you were actually in Canada to the year... So If you entered the US on April 1 you would be able to exclude $20,762 of income and $231.68 for each day thereafter.


Wow, you are just full of info :) I am so glad I came on here. Our US taxes were done so wrong. It's really a "to do all over again" . So with all that done with the US taxes, are the Canadian taxes done the same way? What about the provincial taxes? :)

Flames9, thanks for the serbinski site. I'm still checking it out. btw hope you like Falls Church. I lived there many moons ago (in my teen years) and I absolutely loved it.



For the Canadian taxes, you have to file a "Leaving Canada" return, you do this by doing a normal T1 and placing the date that you left Canada on the front page. You only have to inlcude the income that you made while you were in Canada, but your deductions have to be reduced by the time you were in Canada... You send the Leaving Canada return to the Internatioal Tax Services Office in Ottawa. Read the great guide Emigrants and Income Tax on the CCRA website. They give you tons of info...

http://www.cra-arc.g...56/t4056-e.html

For Provincial.. I assume that you previously lived in Quebec?... since every othe rprovince attaches with the Federal return...

If so, there is a spot on the Quebec Return that includes the date that you left Canada and the reason why... You would do your taxes the same way.. only report the income that you earned while you were resident in Canada and reduce the deductions by the ratio of days that you were in Canada..

Edited by zyggy, 21 March 2007 - 08:45 AM.

zyggyNot TellingCanada2007-03-21 08:29:00
CanadaCanadian TV in the US

Call Star Choice and buy a receiver, dish + self installation kit. When you get to the USA, set it up. Keep your Canadian cell phone # so you can call them to activate your programming packages (they will think you are calling from Canada through an ID caller) and chose the paperless option so you do not receive an invoice monthly. Then use your USA Visa/MC to pay the bill online.



I call them from the US all the time when I have trouble. You can't use the toll free number through. They actually have a ghost number in Montreal for people in the US. They don't advertise it though, you have to be sneaky to find out what it is..
zyggyNot TellingCanada2007-02-19 09:00:00
CanadaCanadian TV in the US

However since they do not have the liscence to broadcast in the states they are pretty strickt about enoforcing this. They have ways technical and logistical to know where the unit is being used and will immediately disconect the account once they find out.

Take ExpressVU or Star Choice with you... of course, you'll need someone to pay for it for you...



Hogwash... I and thousands of others have been using ExpressVu in the US for years... I personally have had it for over 4 years now and it has never been turned off... I keep paying the bills, they keep sending the programming..
zyggyNot TellingCanada2007-02-15 08:15:00
CanadaCanadian TV in the US
Take ExpressVU or Star Choice with you... of course, you'll need someone to pay for it for you...
zyggyNot TellingCanada2007-02-13 15:13:00
CanadaDid you remember to do this...after leaving Canada
Because it's the way to close off your tax status in Canada.... I don't know about you, but the prospect of CRA coming after me for any taxes after I had left is not a very thrilling thing... It's but another thing you do to show you are cutting off your ties to Canada....
zyggyNot TellingCanada2007-02-22 08:46:00
CanadaDid you remember to do this...after leaving Canada

Hi Zyggy,

Good luck on your immigration journey. Thanks for your reply. So do I just print out the first page of the T1 (lol..I didn't even know it was called this until I looked it up and found out it was the proper name for the tax return form), and fill it out with the date that I left and send it in to the CRA?

As for the GST cheques, well, it's a little too late to hold on to them, as they were already sent back "return to sender". But if I did not cash in those cheques, then I do not owe them any money, so why should they send me a bill for cheques that I never cashed in? Frankly, if the uncashed returned cheques got lost in the mail and/or the government does not keep track of cheques that are not cashed, it's not my problem anymore (blame it on Canada Post or the CRA for that). Hey, at least I did the honest thing, I returned those cheques and did not cash them in, as due to that fact that I left the country I am not legally entitled to those cheques in the first place!

Ant

Ant..

All Canadians must file a leaving Canada return which is a T1 from the province that you left with the date that you left on the front. You must file it even if you had absolutely no income during the year that you left...

You should not have done the return to sender on the GST checks. You should have either held onto them uncashed and sent it back when they asked for them or cashed them so that you would have the money to write a check back when they send you the ultimate bill. If you do a mere return to sender, they may not have accounted for it when it was returned and you will still owe the money...



Nope.. you actually have to fill in all the blanks... you can't just send in the first page... if you have 0 income.. you have to prove that you have 0 income and that you don't owe the government anything like for instance if you cashed in a RRSP for education and didn't pay it back.. you would owe the tax for that when you left Canada...

And you could always just keep them in a drawer uncashed and could cash them in later after you told them that you never received them :)'.. believe me that's not the first time that has been pulled... The goverment has no easy way to track if you ever cashed the checks...
zyggyNot TellingCanada2007-02-21 08:50:00
CanadaDid you remember to do this...after leaving Canada

Hi Zyggy and Everyone Else,

Good luck on your immigration journeys. Thanks for your replies. So if I do fill out a tax return, the only thing that I need to fill out is the date that I left Canada? That's it? I don't have to fill out the financial numbers stuff? Lol...in that case then maybe it's better that I fill out a tax form instead of a NR73? Boy, am I confused, as I thought that filling out the NR73 would be easier for me (since it is easier for me to fill out words than to fill out numbers, I was never much of a math person)..lol...As for the GST cheques, I simply asked someone in Canada who picked up my mail to put "return to sender" on any government stuff and any other letters that were addressed to me after I left. I did not cash in any cheques after I left, as I am not legally entitled to them anyways. And yes, I am not a resident of Canada anymore, so frankly I don't care how they determine that I'm not a resident there, as the bottom line is I'm not.

Ant

You don't need to fill out the NR73 and I wouldn't unless I had a request from CRA in writing. Why give them more ammunition in making a determination if you are a deemed resident when they always declare you a non-resident when you just put down the date you left Canada on the form.



Ant..

All Canadians must file a leaving Canada return which is a T1 from the province that you left with the date that you left on the front. You must file it even if you had absolutely no income during the year that you left...

You should not have done the return to sender on the GST checks. You should have either held onto them uncashed and sent it back when they asked for them or cashed them so that you would have the money to write a check back when they send you the ultimate bill. If you do a mere return to sender, they may not have accounted for it when it was returned and you will still owe the money...

Edited by zyggy, 20 February 2007 - 04:25 PM.

zyggyNot TellingCanada2007-02-20 16:24:00
CanadaDid you remember to do this...after leaving Canada
You don't need to fill out the NR73 and I wouldn't unless I had a request from CRA in writing. Why give them more ammunition in making a determination if you are a deemed resident when they always declare you a non-resident when you just put down the date you left Canada on the form.
zyggyNot TellingCanada2007-02-20 08:14:00
CanadaEI and EAD

So I was reading somewhere, can't remember where, that us Canadian K3s should file EAD separate from AOS because we would get it faster (and be able to apply for EI) and it would last longer than if we filed with AOS? Is that correct? I know that Cdancer mailed off her EAD only immediately.

Someone correct me if I'm wrong:

- enter U.S. on K3
- file EAD separately
- file AOS separately

Where in that mix do we file for a SSN in that? I have checked off on one of my forms (DS-230 I think that yes I will be applying for a SSN).

Thanks!


You can't apply for a SSN until you get an EAD as a K3...

But yes... An EAD filed based on a K3 will last as long as the K3 status is valid (2 years)... An EAD filed with AOS will only last for a year.
zyggyNot TellingCanada2007-02-27 11:59:00
CanadaEI Tax Slip

You can still file Cdn taxes. My exit taxes were 2004(december). I received EI from Feb to Oct. 2005 My only income for the most part was the EI (and a bit of severence pay carried over from 2004) You may not get much back for 2 months, bu tprobably enough for a good night out!! I think my refund check was over $2000 cdn. And there is a income tax progrom (probably a few) that allows you to file for FREE if u make under a certain amount, and it recognizes non-residents in its software. Think it was quick tax??


I'm really confused now.

Why would I be filing Canadian taxes and reporting world income on that? Won't I be taxed by them just as I'm being taxed by the US?

Don't I recoup the 25% nonresident tax on my US taxes somehow?

I'll check out Serbinski but this makes no sense to me on the face of it...tell me where I might have it wrong.


Cerise...
t
As a non-resident, the Canadian Tax Code states the amount of taxes that you owe them can be determined in one of two ways:

The first way is to just have then take the 25% non-resident tax on Canadian source income and ignore your worldwide income otherwise which I believe is Section 216..

The Second way is to opt to get taxed on your worldwide income based on filing a return as if you were a Canadian resident via Section 217.

Basically, if the amount of tax based on your worldwide income is less that the amount that they took on your Canada source income, you can apply to get the portion of the 25% non-resident tax back. In essence, you have to be under the 25% tax bracket to make it work. Or you really need no or very little US income.

Or in another way.. if your worldwide income causes you to owe more than 25% tax, all you owe Canada is the 25%. If your worldwide income causes you to owe less than 25%, you get a refund between the amount you owe and the amount they collected.

Even if the International Tax Office told you you wouldn't qualify, I would probably do the Section 217 anyways to make sure. You never know until you do the numbers. Remember, your spouses income DOES NOT come into play here...

Rememebr that you have to report ANY Canada source income on your US 1040, but you can take a credit of those taxes by filing for a foreign tax credit. The US/Canada tax treaty does not allow for ANY double taxation.


Thanks Zyggy. I'm familiar with the declaration on the 1040 along with the foreign tax credit...I withdrew an RRSP in late 2005 so have already run hat exercise. My confusion arose because I couldn't see a purpose in filing Canadian taxes when I know that there is no double taxation...but now it's clearer. :)

So essentially what I'm reading here is that even if my total income last year moves me to a higher than 25% tax bracket, because the US is taxing me, Canada won't? And that the 25% I've already paid on my EI is all they'll take? Is that correct?

I'll run the numbers on the 217. Because I love math soooo much. :lol:

Seriously, though, thanks! Y'all are great!


Exactly... You got it...
zyggyNot TellingCanada2007-02-20 08:17:00
CanadaEI Tax Slip

You can still file Cdn taxes. My exit taxes were 2004(december). I received EI from Feb to Oct. 2005 My only income for the most part was the EI (and a bit of severence pay carried over from 2004) You may not get much back for 2 months, bu tprobably enough for a good night out!! I think my refund check was over $2000 cdn. And there is a income tax progrom (probably a few) that allows you to file for FREE if u make under a certain amount, and it recognizes non-residents in its software. Think it was quick tax??


I'm really confused now.

Why would I be filing Canadian taxes and reporting world income on that? Won't I be taxed by them just as I'm being taxed by the US?

Don't I recoup the 25% nonresident tax on my US taxes somehow?

I'll check out Serbinski but this makes no sense to me on the face of it...tell me where I might have it wrong.


Cerise...

As a non-resident, the Canadian Tax Code states the amount of taxes that you owe them can be determined in one of two ways:

The first way is to just have then take the 25% non-resident tax on Canadian source income and ignore your worldwide income otherwise which I believe is Section 216..

The Second way is to opt to get taxed on your worldwide income based on filing a return as if you were a Canadian resident via Section 217.

Basically, if the amount of tax based on your worldwide income is less that the amount that they took on your Canada source income, you can apply to get the portion of the 25% non-resident tax back. In essence, you have to be under the 25% tax bracket to make it work. Or you really need no or very little US income.

Or in another way.. if your worldwide income causes you to owe more than 25% tax, all you owe Canada is the 25%. If your worldwide income causes you to owe less than 25%, you get a refund between the amount you owe and the amount they collected.

Even if the International Tax Office told you you wouldn't qualify, I would probably do the Section 217 anyways to make sure. You never know until you do the numbers. Remember, your spouses income DOES NOT come into play here...

Rememebr that you have to report ANY Canada source income on your US 1040, but you can take a credit of those taxes by filing for a foreign tax credit. The US/Canada tax treaty does not allow for ANY double taxation.

Edited by zyggy, 19 February 2007 - 01:39 PM.

zyggyNot TellingCanada2007-02-19 13:30:00
CanadaEI Tax Slip

I cashed in a pile of RRSp's this yr as well. According to wife's parents accountant (who doesnt know much about USA/Cnadad taxes mind you) he stated since I already paid taxes in canada on them, i should not have to do anyhtign about them with regards to my USA taxes. Doesnt sound right to me though, so i have to investigate further.



Flames...

You do have to report the amount that you cashed in on your RRSP's as income on your US 1040. However, if Canada taxed you on them, you can take a foreign tax credit on the foreign tax that was paid on them... So you may not have to owe US tax on anything. The US/Canada tax treaty does not allow for double taxation, but you do have to report it. If the tax in Canada is less than that in the US (doubtful), you have to make up the difference in the US.

I would also fill out a Section 217 return to see if you can get a portion of the non-resident taxes that were taken out of your RRSP's back from CRA.

I really should go into business doing foreign taxation... I am giving away all this free stuff when I could get some bucks for doing it...

Edited by zyggy, 19 February 2007 - 08:57 AM.

zyggyNot TellingCanada2007-02-19 08:55:00
CanadaEI Tax Slip
I'll do it for you :)'

It's not that bad... Just do some reading... If you need any assistance, I'll help out where I can without actually seeing the numbers...
zyggyNot TellingCanada2007-02-19 08:52:00
CanadaGrrr...


One last thing -- where is the Alphagetti when you need it?!?!?!?! ;)

You have to buy "alphabet-shaped" Spaghettios!! :D Trust me, I have a 10 year old haha I went in a store asking where the Alphaghetti was and got the proverbial "HUH?" :P

Oh, how about Gravol? My husband has never heard of it but we use it alot (was part of his Christmas stocking the last couple of years!!!)

Do you mean the stuff to prevent nausea and motion sickness? If so you can get Dramamine here....same stuff. :yes:


Yeah, except Gravol is much better. My wife keep it in the medicine cabinet at all times as well as Buckley's and NeoCitran
zyggyNot TellingCanada2006-02-01 16:04:00
CanadaGrrr...

I thinking that the only dream whip ive seen is in the container like the cool whip in the refrigerated section. The only thing so far hubby cant seem to find is cheese curds. And friends sent us some Passion Flakies I just got thru eating one :yes:

Found this for you..... http://www.foodservi.../Dream_Whip.htm



Cheese Curds are illegal in the US by health code because all cheese must be pasteurized and you can't get cheese curds if the milk has been pasteurized..
zyggyNot TellingCanada2006-01-31 10:30:00
CanadaNon-resident Tax withheld

Hey all, I'm hoping someone might be able to provide some experience.

I lived and worked in Canada for the first 3 months last year. After I moved to the US, I collected EI for 4 months.

On my T4E in box 24 is an amount of the 25% non resident tax deducted from any EI benefits which I can report on line 437 of my tax form.

Now I also have a NR4 for cashing in my RRSPs shortly after I left the country. Box 17 on the NR4 has the amount of non-resident tax withheld. I'm not sure what to do with the number in Box 17. Can I also report that on line 437?

I don't think I qualify to do a Section 217 as it says one must be a non-resident of Canada for all of 2006. I was still a resident of Canad from January to the end of March.

Any insight?

Thanks.


You can qualify to do a partial Section 217.. read more about it to find out more... Tax BUlletin T4056

Election under section 217 of the Income Tax Act
When you receive certain types of income from Canada after you emigrate, the Canadian payer has to withhold non-resident tax on the income and send it to us. This tax withheld is usually your final tax obligation to Canada on the income.

However, under section 217 of the Income Tax Act, you can choose to file a Canadian return to report the types of Canadian-source income listed in the next section. By doing this, you may be able to pay tax on this income using an alternative taxing method and receive a refund of some or all of the non-resident tax withheld. Choosing to report these types of income on a Canadian return is called "electing under section 217 of the Income Tax Act."

What income is eligible for this election?
This election applies to certain types of Canadian-source income which you receive after you leave Canada, including:

Old Age Security pension;
Canada Pension Plan or Quebec Pension Plan benefits;
most superannuation and pension benefits;
registered retirement savings plan payments;
registered retirement income fund payments;
death benefits;
Employment Insurance benefits;
certain retiring allowances;
registered supplementary unemployment benefit plan payments;
deferred profit-sharing plan payments;
amounts received from a retirement compensation arrangement, or the purchase price of an interest in a retirement compensation arrangement;
prescribed benefits under a government assistance program; and
Auto Pact benefits.
What date is your section 217 return due?
If you elect under section 217 for 2006, you have to file your 2006 return on or before June 30, 2007.

If you are late in sending us your section 217 return, your election will not be valid.

You may also be reporting Canadian-source income, other than eligible section 217 income, on your return. If you have a taxable capital gain from disposing of taxable Canadian property, or if you have to pay tax on employment income you are reporting, you have to file your return by April 30, 2007.

If you are reporting business income and you have to pay tax on that income, you have to file the return on or before June 15, 2007.

Note
If you owe tax for 2006 and do not file your return for 2006 within the dates we specified above, we will charge you a late-filing penalty. We will also charge compound daily interest starting May 1, 2007, on any unpaid amounts owing for 2006.

Completing your section 217 return
Do not file a separate return to elect under section 217. Instead, complete one return for 2006. Follow the instructions in the section called "Completing your 2006 return", and the following special rules.

Identification
Write "section 217" at the top of page 1 of your return and enter your date of emigration from Canada.

Income
On your return, include:

the income you are reporting as an emigrant (see the section called "Income"); and
all amounts eligible for the section 217 election (see the section called "What income is eligible for this election?") that were paid or credited to you in the part of 2006 that you were a non-resident of Canada.
Federal and provincial or territorial tax
Special rules apply for calculating federal and provincial or territorial tax on your section 217 return in the year that you emigrate. Generally, you have to pay federal tax, as well as provincial or territorial tax for the province or territory where you lived before you left Canada.

Federal and provincial or territorial non-refundable tax credits

If you include on your return at least 90% of your net world income for the part of 2006 that you were not a resident of Canada, you can claim all of the federal and provincial or territorial non-refundable tax credits that apply to you. This represents your allowable amount of federal and provincial or territorial non-refundable tax credits.

If you do not meet this 90% rule, your allowable amount of federal non-refundable tax credits cannot be more than 15.25% of the section 217 income (see the section called "What income is eligible for this election?") that was paid or credited to you in the part of 2006 that you were not a resident of Canada. You can claim all of the provincial or territorial non-refundable tax credits that apply to you.

Notes
Attach a note to your return giving a breakdown of your 2006 net world income (in Canadian dollars) for the part of 2006 that you were not a resident of Canada. Show separately the income you received from sources inside and outside Canada for that part of 2006. We cannot allow any non-refundable tax credits without this information.

For the other rules that may apply, contact the International Tax Services Office.


Remember, for your leaving Canada return, you only have to declare the income that was earned while you were still in Canada. All your income that was earned outside of Canada would not be reported and the 25% tax is all that you would owe.

What Section 217 allows you to do is to opt to have that Canada SOurce Income that you earned after you emigrated treated as if it was earned in Canada and figure out your tax that way... That is what Section 217 is...

Do your taxes both ways... A normal Leaving Canada return with the income that was earned while you were only in Canada... and again with all of your Canada source income with the Canadian taxes that were withheld from the in Canada income and the income after you emigrated. File the return that gives you the biggest refund...

Edited by zyggy, 03 March 2007 - 12:46 PM.

zyggyNot TellingCanada2007-03-03 12:45:00