ForumTitleContentMemberSexCountryDate/Time
Removing Conditions on Residency General DiscussionNSC working on I-751 petitions dated 1/27/07??
QUOTE (jennybirgitta @ Nov 30 2007, 12:38 PM) <{POST_SNAPBACK}>
QUOTE (Peter T @ Nov 30 2007, 12:22 AM) <{POST_SNAPBACK}>
I think it is the latter: When they published the latest processing date 1/27/07, your application before 1/27/07 was still unanswered (GC or RFE) and therefore outside the processing date. If you still haven't received anything 30 days after the publishing of the latest processing date, your spouse can contact e.g. your US representative (you can always contact them earlier, but they might just ask you to wait a bit longer). On the other hand, do you think it is worth to invest your time and thought into this when you can travel and work anyway? I plan to just get a I-551 stamp at my local office if my NOA expires, before I get a RFE or GC, and wait another year, before I seek outside help.

Haelsning,

Peter


I will definitely contact my congressman. I think all of us in this situation should contact our representatives. What worries me is if I need to apply for a new job. With an expired green card and a paper (or stamp) that says you can only work for a year beyond its expiration date, how attractive are you? I know it’s enough to show SS card and driver’s license, but with the competition on the job market I’m afraid I wouldn’t have much of a chance if they have several qualified candidates to choose from.

I hope you are right about the 30 days. I guess I have to call them and ask.



Why should it matter... you don't have to tell them anything about your PR status and they can't ask anything more.. they only need to know that you have it. Documentary proof of your ability to work is satisfied on an I-9 through a unrestricted Social Security card and a Picture ID. If you don'thave these things, I suggest that you take the time to get them.

Edited by zyggy, 07 December 2007 - 07:39 PM.

zyggyNot TellingCanada2007-12-07 19:38:00
Removing Conditions on Residency General DiscussionNSC working on I-751 petitions dated 1/27/07??
QUOTE (jennybirgitta @ Nov 24 2007, 12:48 AM) <{POST_SNAPBACK}>
I called them on Wednesday. They told me to wait 30 days after my NOA date became current. What a load of #######.



You can write a letter to your Congressperson and the USCIS ombudsman regarding the time it is taking them to process cases. It probably won't do any good, but if enough people do it, it may result in them putting more resources toward some things.

Edited by zyggy, 29 November 2007 - 03:33 PM.

zyggyNot TellingCanada2007-11-29 15:32:00
Removing Conditions on Residency General DiscussionWeird science
Just like US Citizens, the stamping of passports for PR's is optional and at the discretion of the officer.

If they do it, it will have the notation ARC (Alien Registration Card)

Edited by zyggy, 20 December 2007 - 04:44 PM.

zyggyNot TellingCanada2007-12-20 16:43:00
Removing Conditions on Residency General DiscussionWhat happens if my I751 isnt processed in time?
QUOTE (paliboy @ Jan 7 2008, 09:38 PM) <{POST_SNAPBACK}>
My I-751 has been pending since 04/2006. My GC expired on 05/05 and I am still waiting for the final decision. My question here is am I eligible to apply for Naturalization since its been almost 5 years since I got my PR back in 2003( even though i am still married to U.S Citizen) or I have to wait for my I-751 before actually applying? I don't Know what to do anymore. Please help.... One last question, I just got my passport stamped with i-551 but I never updated my SS card to take out the valid for employment with DHS permit before my GC expired, can I still go and get a new card without the restriction with the I-551 stamp with out any hassle or they are going to give me hard time ? I appreciate the help



You do not have to wait for the I-751 to be approved to apply for naturalization... Most times the filing of naturalizsation forced adjudication of the I-751. Filing for naturalization is one of the typical tactics to get that petition acted on. It should not be a problem for you to apply to get an unrestricted SS card with the passport stamp.
zyggyNot TellingCanada2008-01-08 10:48:00
Removing Conditions on Residency General DiscussionDo we have to remove conditions??! direct consular filing
But... were they married for two years at the time they entered the US... if they were then the issuance of the 10-year card is correct. If not, then even though you were erroneously issued a 10-year card, the law still requires you to file for removal of conditions as you are legally a conditional permanent resident.
zyggyNot TellingCanada2008-01-10 10:15:00
Removing Conditions on Residency General DiscussionWill you become a U.S. Citizen?
QUOTE (iansig40 @ Feb 27 2008, 06:41 AM) <{POST_SNAPBACK}>
QUOTE (Cassie @ Feb 27 2008, 12:35 AM) <{POST_SNAPBACK}>
QUOTE (lucyrich @ Feb 26 2008, 11:48 PM) <{POST_SNAPBACK}>
QUOTE (iansig40 @ Feb 26 2008, 06:37 PM) <{POST_SNAPBACK}>
Yes, I know I can have dual citizenship but .....I had enough paying all those absurd and ridicules fees since I started my K-1 nightmare .No,I'm good staying Canadian !!!!!!!!!!!!!!!!


But citizenship is the only way to put a permanent end to those ridiculous USCIS fees. Yes, it does mean paying one more big fee for the N-400, but it puts an end to the fees for green card renewals, replacement cards if you ever lose your GC, address changes, re-entry permits, and whatever other things they may come up with in the future.



ahhh but iansig40 has a British friend living here with an expired GC who is getting along just fine........ whistling.gif

I plan on becoming a dual citizen, so I can get USCIS out of my hair. But if I am ever asked to recind my Canadian citizenship for the US, it ain't happening.


No ,for now you don't have to give up on you Canadian Citizenship but you never know with these SOB from USCIS ,they may change that in their agony for more cash



The US has no say on how another country recognizes their own citizens. SO it does't matter what the US says when you naturalize. It's what the other country of citizenship thinks about it. Some countries do not allow dual citizenship and take the position that taking another citizenship is a defacto renunciation of their citizenship... and others (like Canada, UK) do not.
zyggyNot TellingCanada2008-02-27 10:36:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (AaronInVirginia @ Feb 18 2009, 11:29 PM) <{POST_SNAPBACK}>
Hi Zyggy,

Thank you for all your help for everyone, I hope you can shed some light on my answers as well. yes.gif

I'm a U.S. Citizen, my wife and her daughter are Canadian citizens. We are in the process of getting through the paperwork so they can live here legally. I'm doing MFJ and using turbotax. I've also got the W-7 ITIN forms and I know that we can't efile. The only place there seems to be a place for us to declare her income is on the 2555 foreign income exclusion form. I've done a little bit of research, and it looks like she meets the bona fide resident test because she's lived their her whole life, she worked for a Canadian entity that has no U.S. presence (thus tax home is there). But, since we're going to file MFJ and have her viewed as a U.S. resident for the full year (with a declaration that that's what we're doing).

So I guess, my first question is, does that negate the whole bona fide resident thing?

Secondly, if I can't use the 2555 form, then (forgive me if this is a dumb question) where/how DO I declare her income? helpsmilie.gif

Thirdly, she has earned interest on Canadian bank accounts. I have to declare this to the IRS also, correct? what form do I do that with?

Thank you in advance for your help!


YOu can make the option to treat her as a resident alien for tax purposes. You do this in writing and include a statement with yuor return. Even though you can opt to treat her as a resident alien for tax purposes (meaning you must report her worldwide income to the IRS), you can exclude her foreign income using the 2555 she is a bona fide tax resident of Canada and not the US.

It's no different as if you as a USC lived in Canada.. you are requried to report your worldwide income to the IRS, but you can exclude it since you were a bonafide tax resident of Canada.

You would include interest income with the wage income that you exclude on the 2555. It's all foreign income.
zyggyNot TellingCanada2009-02-19 11:02:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (EED @ Feb 17 2009, 02:50 PM) <{POST_SNAPBACK}>
Zyggy.

RE 8891 for the LIRA, if it is managed by the same plan provider as my RRSP, do I report the total combined value of the account in one form or do I report it separately in a new 8891?

I would also like to hear your thoughts on completing NR73, should we just let our final tax with a departure date speak for itself or should we file a NR73?

I appreciate the time and effort you put in responding to this thread. Thank you!


Same form is fine.

Do not file a NR-73 unless CRA specifically asks you to do so. THe Leaving Canada return speaks for itself.
zyggyNot TellingCanada2009-02-18 13:32:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (EED @ Feb 16 2009, 09:33 PM) <{POST_SNAPBACK}>
Hi Zyggy.

I have a 2 part question:

I received $200 income from Universal Child Care Benefit in 2008. This is the only income we have in Canada. Do we have an obligation to file Canadian taxes or can we just include this with our US income?

In regards to form 8891, I am having difficulty figuring out the value of my RRSP at Dec 31. Can I use the value as at the last statement date, which is Oct 2008? Also, are LIRA's reported the same way as RRSP's?

I look forward to your comments.

Thanks


You shoudl not have received the benefit if you filed a Leaving Canada return for 2007. If you entered the US in 2008, you must file a leaving Canada return, even if you have 0 income. In your case, be prepared to pay all or a portion of that benefit back if you entered the uS in 2008.

The value of all retirement plans are reported on the 8891 including a LIRA. You should get a year end statement. If not, call your plan and ask for the value on Dec 31.
zyggyNot TellingCanada2009-02-17 10:46:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (foxmon @ Feb 15 2009, 05:01 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Feb 15 2009, 05:46 PM) <{POST_SNAPBACK}>
QUOTE (foxmon @ Feb 15 2009, 01:26 AM) <{POST_SNAPBACK}>
Ziggy:

One quick question.
I have become a non-resident of Canada in 07 and I have received two NZ-4 slips (1 for bank interest and 1 for dividend).
I tried to file my tax using Taxact but I couldn't find the appropriate field to enter the two slips. There is an option for foreign interest but when I entered Canada it didn't prompt me to the next section. I am wondering is this a software issue or did I not fill in the right section?

Thanks in advance!


If the 25% non-resident tax was taken out, you do not need to file anything to CRA.


Ziggy, thanks for the quick reply. I guess I didn't ask my question clearly. I was wondering which form will I have to use to report my Canadian income to IRS. The software I used (Taxact) didn't have a place for me to enter these income. Does other software like turbotax have a form for these income or do I have to file it manually with paper form?
I am ok on the Canadian side since CRA no longer withhold tax from interest income(Bill C38) and they have already withheld 15% tax from my dividend income.

Thanks again!


You would enter it like any other dividend or interest. Nothing special if its foreign...
zyggyNot TellingCanada2009-02-16 19:13:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (daisylynn @ Feb 13 2009, 07:19 PM) <{POST_SNAPBACK}>
I do have another question. We left Canada in May 2008 but my dh was still paid by his Canadian company for 9 weeks after that. How do we go about filling the papers out for that?



If the non-resident taxes were not taken out, the excess pay is treated as being paid on the date you left Canada.

QUOTE (foxmon @ Feb 15 2009, 01:26 AM) <{POST_SNAPBACK}>
Ziggy:

One quick question.
I have become a non-resident of Canada in 07 and I have received two NZ-4 slips (1 for bank interest and 1 for dividend).
I tried to file my tax using Taxact but I couldn't find the appropriate field to enter the two slips. There is an option for foreign interest but when I entered Canada it didn't prompt me to the next section. I am wondering is this a software issue or did I not fill in the right section?

Thanks in advance!


If the 25% non-resident tax was taken out, you do not need to file anything to CRA.
zyggyNot TellingCanada2009-02-15 17:46:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (Caladan @ Feb 14 2009, 08:56 AM) <{POST_SNAPBACK}>
Hey Mr. Zyggy (or others):

1) Last year C. filed the leaving Canada form and was treated as a non-resident for tax purposes. This tax year, he worked in Canada and has job-related taxes. He is a resident of the U.S. and we will file the U.S. taxes appropriately. My question is what we have to do with Canadian taxes: do we file taxes as a non-resident? He owns no property in Canada and has spent ~ 2 months in Canada in 2008 on work business.

2) Where does one go to find a U.S./Canadian exchange rate calculator to report the income earned in Canada appropriately in USD?

Thanks.


1) He would file a Canadian non-resident return.

2) The Federal Reserve has historical data on daily exchange rates. They also calculate a average exchange rate for the year. You have a choice. You can calculate the amount in USD for each date you were paid, or you can take the total amount you were paid and use the average yearly exchange rate.
zyggyNot TellingCanada2009-02-15 17:42:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (3sila @ Feb 13 2009, 03:16 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Feb 9 2009, 08:55 PM) <{POST_SNAPBACK}>
QUOTE (pegbert64 @ Feb 9 2009, 05:08 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Feb 9 2009, 01:16 PM) <{POST_SNAPBACK}>
QUOTE (pegbert64 @ Feb 9 2009, 07:05 AM) <{POST_SNAPBACK}>
I'm trying to get up to date with all the Canadian taxes. I called CRA to find out what they needed, and they said that I must file a return for 2006, even if I had no income. 2007 will become my "exit" return, as that is the year that I filed for US Permanent Residency.

My question is this: on the 2006 T-1 Identification box, do I use my CURRENT (married) name and current US address, or do I use my PREVIOUS name and former Canadian address?

Thank you.


You would use your name on 12/31/06. Use your current address.


Thank you. I have one more question..... the last one, I think! I'm filing Section 217 for 2008 to get back some of the 25% withheld when I cashed out my RRSPs in 2008. I've got the non-resident T1 filled out already. Obviously, I use my current married name and US address. Where it says "marital status", I put "married". But then what do I put under the spouse information, since my husband is the US citizen, never lived or worked in Canada, does not have a SIN# or any other ties to Canada (except me, of course!) Do I just leave that box blank? If it makes a difference, I have no income from anywhere in 2008, except for the RRSP cashout.

Thanks again!


Typing in US Resident would be appropriate

QUOTE (3sila @ Feb 9 2009, 04:28 PM) <{POST_SNAPBACK}>
QUOTE (childress_london @ Feb 2 2009, 09:53 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Feb 2 2009, 01:40 PM) <{POST_SNAPBACK}>
QUOTE (childress_london @ Feb 1 2009, 11:40 AM) <{POST_SNAPBACK}>
QUOTE (childress_london @ Feb 1 2009, 12:54 AM) <{POST_SNAPBACK}>
I married my husband in August and of course he is still in Canada, has never been to the U.S. (and he is an Iranian citizen living in Canada.) I am trying to file Married Separately, but it seems I need a SSN for him, which of course he doesn't have. What do I do?

BTW he is a student and not currently working.



NV, I found out that I have to file as single, since he does not have a SSN.


You may not file as single.. period. Your best tax consideration would likely be to opt to have your husband treated as a tax resident for the entire tax year, file as married filing joint and exclude his income using Form 2555. Also do your taxes as married filing separate as well. You will have to file for an ITIN for your husband.


H&R Block told me to file single. Now I'm thoroughly confused. I already submitted my taxes.

I did the same thing back in 2006..filed as single ..my husband didn t have ssn ...I am going to get money back if I amend it..but I am not sure if I should do that now?;(


You can file an amendment for 2006... Go ahead and do it and get they money you deserve.


you don't think they are going to give me hard time for that?!
thank you so much.


No... if you are eligible for it, there's nothing to be afraid of...
zyggyNot TellingCanada2009-02-13 18:39:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (pegbert64 @ Feb 9 2009, 05:08 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Feb 9 2009, 01:16 PM) <{POST_SNAPBACK}>
QUOTE (pegbert64 @ Feb 9 2009, 07:05 AM) <{POST_SNAPBACK}>
I'm trying to get up to date with all the Canadian taxes. I called CRA to find out what they needed, and they said that I must file a return for 2006, even if I had no income. 2007 will become my "exit" return, as that is the year that I filed for US Permanent Residency.

My question is this: on the 2006 T-1 Identification box, do I use my CURRENT (married) name and current US address, or do I use my PREVIOUS name and former Canadian address?

Thank you.


You would use your name on 12/31/06. Use your current address.


Thank you. I have one more question..... the last one, I think! I'm filing Section 217 for 2008 to get back some of the 25% withheld when I cashed out my RRSPs in 2008. I've got the non-resident T1 filled out already. Obviously, I use my current married name and US address. Where it says "marital status", I put "married". But then what do I put under the spouse information, since my husband is the US citizen, never lived or worked in Canada, does not have a SIN# or any other ties to Canada (except me, of course!) Do I just leave that box blank? If it makes a difference, I have no income from anywhere in 2008, except for the RRSP cashout.

Thanks again!


Typing in US Resident would be appropriate

QUOTE (3sila @ Feb 9 2009, 04:28 PM) <{POST_SNAPBACK}>
QUOTE (childress_london @ Feb 2 2009, 09:53 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Feb 2 2009, 01:40 PM) <{POST_SNAPBACK}>
QUOTE (childress_london @ Feb 1 2009, 11:40 AM) <{POST_SNAPBACK}>
QUOTE (childress_london @ Feb 1 2009, 12:54 AM) <{POST_SNAPBACK}>
I married my husband in August and of course he is still in Canada, has never been to the U.S. (and he is an Iranian citizen living in Canada.) I am trying to file Married Separately, but it seems I need a SSN for him, which of course he doesn't have. What do I do?

BTW he is a student and not currently working.



NV, I found out that I have to file as single, since he does not have a SSN.


You may not file as single.. period. Your best tax consideration would likely be to opt to have your husband treated as a tax resident for the entire tax year, file as married filing joint and exclude his income using Form 2555. Also do your taxes as married filing separate as well. You will have to file for an ITIN for your husband.


H&R Block told me to file single. Now I'm thoroughly confused. I already submitted my taxes.

I did the same thing back in 2006..filed as single ..my husband didn t have ssn ...I am going to get money back if I amend it..but I am not sure if I should do that now?;(


You can file an amendment for 2006... Go ahead and do it and get they money you deserve.
zyggyNot TellingCanada2009-02-09 20:55:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (pegbert64 @ Feb 9 2009, 07:05 AM) <{POST_SNAPBACK}>
I'm trying to get up to date with all the Canadian taxes. I called CRA to find out what they needed, and they said that I must file a return for 2006, even if I had no income. 2007 will become my "exit" return, as that is the year that I filed for US Permanent Residency.

My question is this: on the 2006 T-1 Identification box, do I use my CURRENT (married) name and current US address, or do I use my PREVIOUS name and former Canadian address?

Thank you.


You would use your name on 12/31/06. Use your current address.

Edited by zyggy, 09 February 2009 - 01:17 PM.

zyggyNot TellingCanada2009-02-09 13:16:00
CanadaThe IRS/CRA Income Tax Thread
Just a note... I do not respond to PM's regarding tax issues. If you have a tax question, please post it on the thread.


zyggyNot TellingCanada2009-02-06 16:40:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (Wonder Amy @ Feb 5 2009, 07:54 AM) <{POST_SNAPBACK}>
--I cant seem to edit my above post.

When i am using quicktax - it asks for my address as of december 31st - so i enter non resident and it gives me the non resident tax forms - if i enter ontario, i receive the form i have in paper with the area for if i have ceased to be a resident - but it retains that I was in ontario on dec. 31st (which i clearly wasnt) and then only allows me to enter canadian addresses.

So... which forms should I be using?

Please let me know when you can!
Thanks


I guess Quicktax really breaks down in this instance. You may have to use another program or do what I did and do it by hand. You may want to call their tech support and see if there's a patch or something. YOu definitely want to be using the Ontario form and not the Non-resident one. Remember that you have to pay the full OHIP premium. You don't get to prorate that... wonderful that way aren't they.


Edited by zyggy, 05 February 2009 - 04:33 PM.

zyggyNot TellingCanada2009-02-05 16:32:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (Allie @ Feb 3 2009, 10:40 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Feb 4 2009, 12:13 AM) <{POST_SNAPBACK}>
QUOTE (Allie @ Feb 2 2009, 11:29 PM) <{POST_SNAPBACK}>
Hi Ziggy

I have a couple points I would like you to clear for us before we have our taxes done this yr.

I've been here in the U.S since 07 and collect a monthly pension which is deposited in my bank in Canada.

Last yr. my first tax filing here Jackson Hewitt did our taxes and when I pointed out about my pension earnings in Canada they said it didn't have to be reported here in the U.S. as pension payments would be tax exempt and Canada already taxed it.
My question is. Was this correct, I'd like to know for sure I don't want the IRS chasing after me saying we failed to report foriegn income.

My 2nd question: Do I just file a normal Canadian tax return this yr or do I have to notify them again for a section 217 return. Last yr. I filed under section 217.
Also this yr I have income earnings here in the U.S do they go on my Canadian return with my pension earnings

Thanks
Allie


THe gentlemen at JH was most incorrect. Pension payments are definitely NOT tax exempt with the exception of SS payments. If your pension payment is CPP, then it may be. I need more information.

If you had the 25% non resident tax taken out, then you are not required to file with CRA. If you believe your worldwide income will place you in a tax bracket below 25%, by all means file the Section 217 and get a portion of that 25% back.



The pension is a company retirement pension. When I moved here I called Mellon ( the pension administrator) to inform them I was now living in the U.S. and inquired whether they would be taking the 25% non-residence tax and they said they would be taking a rate of 15%.
Does this now mean I no longer file a Canadian Tax return ? Also how do I now go about reporting to the IRS the pension payments from Canada that weren't put in last yrs. U.S. return?

Thanks for yourassistance Ziggy

Allie


The 15% may be due to Tax treaty and it's treatment of pension funds. But yes, you would no longer file a Canadian tax return.

You would convert the amount of your pension into US Dollars and report it on the pension line on the 1040. (Line 16) If it is a pension from employment (defined benefit plan), 100% is taxable. You would take a foreign tax credit on the pension amount.

Edited by zyggy, 04 February 2009 - 11:00 PM.

zyggyNot TellingCanada2009-02-04 22:59:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (Wonder Amy @ Feb 4 2009, 11:42 AM) <{POST_SNAPBACK}>
Hi,

I've read through this thread but haven't found quite what i'm looking for. I lived in canada for part of the year and worked full time, then came to the US in the spring and received EI (and was married etc). I understand that i'll have to file leaving canada taxes once i receive my t4's - what is the best way to do this? ie: can i use quicktax or something similar, or do i search for the forms and print them out and mail them in?

Also - I've been paying OSAP back for their wonderful loans and I know I normally count the amount paid on interest against my taxes - how does that work in this case? for the leaving canada taxes, would i just count the interest paid until i left canada?

Afaik - for the IRS, we're filing jointly, and counting myself as a tax resident for the year - and using some of the forms to exclude my income from american taxes... so i think the remaining confusing is just on the canadian side with the CRA:)

Thanks for your help!


You can use Quicktax to do the return, but you won't be able to electronically file it. You need to send it to the International Tax Services Office. You will be able to prorate the interest payments against your return. The proration is # days in Canada/366.

EI and any other Canadian Income that had the non-resident tax taken on it is not included on the Leaving Canada return unless you elect to file under Section 217.
zyggyNot TellingCanada2009-02-04 22:53:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (a-jeanne @ Feb 4 2009, 05:23 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Jan 22 2009, 11:57 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Jan 22 2009, 09:51 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Jan 21 2009, 04:10 PM) <{POST_SNAPBACK}>
QUOTE (a-jeanne @ Jan 21 2009, 03:45 PM) <{POST_SNAPBACK}>
Ok - here is my question. The tax guides are soooooo confusing. One says one thing and the next says another. Whew....

I am the US citizen and married a UK citizen in May 2008. He retired January 2008, came here on his K1 in March and receives a monthly portion of a Pension. He still doesn't have adjustment of status - is it beneficial to consider him as an alien or non alien resident? Where the heck do I put the pension income on the 1040 - it's only $3000?

What also has been messing up my 1040 is that in prior years, I as able to take the Earned Income Credit and Child Care Credit for my 2 daughters, but I am running into an issue with him not having income so it says I'm not eligible. HELP!



Your situation is somewhat more involved due to your wanting to claim the EIC and Child Care Credit and your husband not yet being a Us permanent resident. I want to look one thing up, but I won't be able to get the resource I want to look at until tomorrow night. I can give a clearer response then.



YOu can not get EIC if you are excluding your husband's foreign income using Form 2555. In addition, your spouse must also have a valid Social Security Number. If he entered the US on a K-1, he should have a SSN that qualifies. He definitely is considered a resident alien for tax purposes.

You income is combined, so I don't see how that would apply to you. Are you filing as MFJ. One is not eligible for EIC if you file as MFS. You would put the pension income under the pension line on the 1040 or under other income. Be sure to convert to US dollars. The exchange rate for 2008 is 1.8545. If tax is taken out, be sure to take a foriegn tax credit using form 1116.


Thank you for your help. We have filed MFJ and also have included his pension on "other income" on the 1040. And we have converted the pounds to $. So as long as we include his income, we can claim the EIC - correct? He does have a SS#. whistling.gif



Yes.. as long as you don't exclude it, the foreign income in itself does not cause you to be ineligible for EIC.
zyggyNot TellingCanada2009-02-04 22:50:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (Allie @ Feb 2 2009, 11:29 PM) <{POST_SNAPBACK}>
Hi Ziggy

I have a couple points I would like you to clear for us before we have our taxes done this yr.

I've been here in the U.S since 07 and collect a monthly pension which is deposited in my bank in Canada.

Last yr. my first tax filing here Jackson Hewitt did our taxes and when I pointed out about my pension earnings in Canada they said it didn't have to be reported here in the U.S. as pension payments would be tax exempt and Canada already taxed it.
My question is. Was this correct, I'd like to know for sure I don't want the IRS chasing after me saying we failed to report foriegn income.

My 2nd question: Do I just file a normal Canadian tax return this yr or do I have to notify them again for a section 217 return. Last yr. I filed under section 217.
Also this yr I have income earnings here in the U.S do they go on my Canadian return with my pension earnings

Thanks
Allie


THe gentlemen at JH was most incorrect. Pension payments are definitely NOT tax exempt with the exception of SS payments. If your pension payment is CPP, then it may be. I need more information.

If you had the 25% non resident tax taken out, then you are not required to file with CRA. If you believe your worldwide income will place you in a tax bracket below 25%, by all means file the Section 217 and get a portion of that 25% back.

Edited by zyggy, 04 February 2009 - 12:14 AM.

zyggyNot TellingCanada2009-02-04 00:13:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (childress_london @ Feb 2 2009, 07:53 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Feb 2 2009, 01:40 PM) <{POST_SNAPBACK}>
QUOTE (childress_london @ Feb 1 2009, 11:40 AM) <{POST_SNAPBACK}>
QUOTE (childress_london @ Feb 1 2009, 12:54 AM) <{POST_SNAPBACK}>
I married my husband in August and of course he is still in Canada, has never been to the U.S. (and he is an Iranian citizen living in Canada.) I am trying to file Married Separately, but it seems I need a SSN for him, which of course he doesn't have. What do I do?

BTW he is a student and not currently working.



NV, I found out that I have to file as single, since he does not have a SSN.


You may not file as single.. period. Your best tax consideration would likely be to opt to have your husband treated as a tax resident for the entire tax year, file as married filing joint and exclude his income using Form 2555. Also do your taxes as married filing separate as well. You will have to file for an ITIN for your husband.


H&R Block told me to file single. Now I'm thoroughly confused. I already submitted my taxes.


They were wrong.... go back and get them to file an amendment free of charge. Their guarantee that they will get you the best refund, I guarantee you that they didn't do that.

Edited by zyggy, 04 February 2009 - 12:10 AM.

zyggyNot TellingCanada2009-02-04 00:08:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (chukskinboots @ Feb 1 2009, 10:03 AM) <{POST_SNAPBACK}>
Hello, during 2008 my girlfriend lived with me in the US as a student. I filed my taxes using turbo tax and was able to claim her as an unrelated dependent, nearly doubling my return. Unfortunately, I just found out that her parents are also claiming her as a dependent in Canada. My question is, should I immediately make corrections and refile, or should I wait for the government to send me something? Does the US and Canada share that information? Thanks in advance.


If you provided more than 50% of her support, lived with you for the ENTIRE tax year, and you can document that and she made no more than $3,500 in income, you may claim her. With her as a student, I question if you truly provided more than 50% of her support. That means everything (food, tuition, shelter, etc.).

If you don't believe you will be able to substantiate that claim, I suggest you file an amendment once you get your refund and pay the money back.

Edited by zyggy, 02 February 2009 - 02:48 PM.

zyggyNot TellingCanada2009-02-02 14:44:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (childress_london @ Feb 1 2009, 11:40 AM) <{POST_SNAPBACK}>
QUOTE (childress_london @ Feb 1 2009, 12:54 AM) <{POST_SNAPBACK}>
I married my husband in August and of course he is still in Canada, has never been to the U.S. (and he is an Iranian citizen living in Canada.) I am trying to file Married Separately, but it seems I need a SSN for him, which of course he doesn't have. What do I do?

BTW he is a student and not currently working.



NV, I found out that I have to file as single, since he does not have a SSN.


You may not file as single.. period. Your best tax consideration would likely be to opt to have your husband treated as a tax resident for the entire tax year, file as married filing joint and exclude his income using Form 2555. Also do your taxes as married filing separate as well. You will have to file for an ITIN for your husband.
zyggyNot TellingCanada2009-02-02 14:40:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (Texanadian @ Feb 1 2009, 08:43 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Jan 22 2009, 10:57 PM) <{POST_SNAPBACK}>
Be sure to convert to US dollars. The exchange rate for 2008 is 1.8545. If tax is taken out, be sure to take a foriegn tax credit using form 1116.


This exchange rate needs to be settled. Using the Federal Reserve website for year 2008, I see 1.066 being the exchange rate.

http://www.federalre...ent/default.htm

Where exactly are you getting 1.8545 from?


Read the question.. The OP was refering to British Pounds... I gave 1.066 for the CAD in an earlier post.
zyggyNot TellingCanada2009-02-02 14:37:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (jedinite @ Jan 30 2009, 12:14 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Jan 26 2009, 08:20 PM) <{POST_SNAPBACK}>
To expand on the above...

You must meet 3 tests to use the 2555. 1) You must be a bona fide tax resident of another country 2) You must the a citizen of a country that the US has a tax treaty with and 3) you must not meet the definition of a US Tax resident by the SUbstantial presence test. Remember for the substantial presence test, a full day has to be a full day. Your travel days do not count. For instance if you entered the US on Friday and left on Sunday, only Saturday would count.


http://www.irs.gov/b...=129390,00.html

So as a Greencard holder even if we have been a permanent resident for less than 31 days we must still file for taxes correct?


Yes, you pass the green card test.. you must file

QUOTE (Texanadian @ Jan 31 2009, 03:06 AM) <{POST_SNAPBACK}>
Treasury seems to have different exchange rates for CDN-USD money than the Federal Reserve listed earlier in this thread.

http://fms.treas.gov/intn.html#rates

1.1910


That was the rate ON December 31. That is not the composite rate for 2008. The Federal reserve rate is the correct rate.
zyggyNot TellingCanada2009-01-31 14:37:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (BH45 @ Jan 29 2009, 12:10 PM) <{POST_SNAPBACK}>
Hi Zyggy

First let me say, thank you. This is a great thread.

Now, here's my dilema. My US hubby went ahead and filed his taxes. He filed jointly without having any of my information and he couldn't figure out how to enter Canada, so he input CA - which is California, right. He used Turbo Tax.

How do I fix this? I've been here since June 30/08. We went to Canada for 8 days at Christmas. I did come for a visit in March of 2008 and was here for 13 full days. I received income from my former work place in Canada until July 4 (they were paying out my vacation time) and then collected EI.

Any advice / help would be greatly appreciated.



He filed already.. not good. You're going to have to amend your return to reflect your EI income and the foreign tax credit. YOu're probably not going to like the results. Don't file the amendment until after you get your refund back or you pay the balance due and get acknowledgement from the IRS.

BTW the IRS HATES amendments... and they let you know it.

Edited by zyggy, 30 January 2009 - 01:22 PM.

zyggyNot TellingCanada2009-01-30 13:21:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (LindaB @ Jan 26 2009, 06:04 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Jan 26 2009, 10:05 AM) <{POST_SNAPBACK}>
QUOTE (LindaB @ Jan 25 2009, 11:34 AM) <{POST_SNAPBACK}>
Hi Ziggy,

I have a few questions (hope it all makes sense!):

I am the Canadian, we got married in June 2007, and came here on my CR1 visa in July 2008. I still commute to work in Canada every day. My husband is the U.S. citizen and is on a non-taxable disability pension.

1. Last year when I was doing my Canadian 2007 taxes, I entered that I was married and put my husbands name and that he was a non-resident of Canada. I was told once that I would not enter his income in and then a tax place and someone at CRA told me I had to put it in and use the percentage to calculate from U.S. to Canadian. (I attached a letter to my income tax saying if I had done it wrong...explaining that is was a non-taxable pension to please correct it but I got back exactly what I had entered). Yesterday, I was talking to someone at a tax place and they said I should enter "zero" as his income as it is non-taxable. Is this right even in Canada? Is so, can I go back and get CRA to adjust my 2007 income tax return? Need to know for this year too.

2. If I will still be working in Canada, do I still have to fill out the "leaving Canada" form you were talking about in other posts? I know I would click on "no" in the "were you living in B.C. on Dec 31, 2008 etc.

3. Is Turbotax fairly easy to use to do your U.S. taxes if you are claiming forgein income etc? If so, I would rather do that than pay big bucks to a tax preparer.

Thanks so much for your help! (I am sure I will think of a "ton" more questions before I am finished...lol)

1. You are supposed to compute his income using the standard exchange rate (I have posted it on this thread) and report it on your return. You are correct in putting US Resident in where you put the SIN number.

2. Even though you are still working in Canada, you are no longer a resident of Canada. You need to file a leaving Canada return for this year, listing the date of your CR-1 as the date that you left Canada. However, I would actually File under Section 217 since you have earned income in Canada for the entire year. In future years, I believe you should file a non-resident return, unless there is something that could cause you to be a deemed resident of Canada (still own a house, etc.). I'm going to do some further research to confirm this.

3. In your case, I would pay for a well-qualified cross-border tax preparer to do your first year or two of your taxes. Once that is done and you get an understanding on how it works by asking your preparer lots of questions, you can use those returns as a guide and try to do them yourself. Cross border taxation, especially in your case when you live in one country and work in the other is no place where you want to do it yourself if you don't fully understand what you're doing.


Would I still enter his income even if it is a non taxable disability pension in the U.S.?

Thanks for your help!

Linda


Do you mean a disability pension provided by an employer or SSI from Social Security. There is a difference in how it is treated.

QUOTE (KiKi @ Jan 26 2009, 05:13 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Jan 26 2009, 05:49 PM) <{POST_SNAPBACK}>
QUOTE (KiKi @ Jan 26 2009, 12:39 PM) <{POST_SNAPBACK}>
Yes, it does count in your total income and it will be used in determining if you are eligible for the EIC. You should have received advise from a tax professional before you cashed it out and you could have avoided these issues.

Thank you for your reply.

The fact that I asked about the EIC should answer the question about hiring proffessional help....in and of itself ;-)


There are places and agencies that give pretty good tax advise for free.



Really? Would you happen to have a list of those resources becuase we could sure use it right about now....thanks!


Your local society of AICPA would be a good place to start.
zyggyNot TellingCanada2009-01-26 22:24:00
CanadaThe IRS/CRA Income Tax Thread
To expand on the above...

You must meet 3 tests to use the 2555. 1) You must be a bona fide tax resident of another country 2) You must the a citizen of a country that the US has a tax treaty with and 3) you must not meet the definition of a US Tax resident by the SUbstantial presence test. Remember for the substantial presence test, a full day has to be a full day. Your travel days do not count. For instance if you entered the US on Friday and left on Sunday, only Saturday would count.
zyggyNot TellingCanada2009-01-26 22:20:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (sly_wolf @ Jan 26 2009, 06:44 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Jan 26 2009, 02:08 PM) <{POST_SNAPBACK}>
QUOTE (sly_wolf @ Jan 26 2009, 11:37 AM) <{POST_SNAPBACK}>
Zyggy,

If I meet all of the other requirements, can I still use Form 2555 if I visited the US on a regular basis (ie weekends) during 2008?

Sly



Yes, I wouldn't think weekend visits would trip the substantial presence test that would make you a tax resident of the US and therefore ineligible to use the 2555.



I do meet the substantial presence test, but I was a bona fide resident of Canada in 2008. Are you saying that I cant use form 2555?

Sly


Hmmm.. I'm going to need to do further research...remember that a full day has to be a full day. Your travel days do not count. For instance if you entered the US on Friday and left on Sunday, only Saturday would count.

Edited by zyggy, 26 January 2009 - 10:17 PM.

zyggyNot TellingCanada2009-01-26 22:13:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (KiKi @ Jan 26 2009, 12:39 PM) <{POST_SNAPBACK}>
Yes, it does count in your total income and it will be used in determining if you are eligible for the EIC. You should have received advise from a tax professional before you cashed it out and you could have avoided these issues.

Thank you for your reply.

The fact that I asked about the EIC should answer the question about hiring proffessional help....in and of itself ;-)


There are places and agencies that give pretty good tax advise for free.
zyggyNot TellingCanada2009-01-26 16:49:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (Darryl @ Jan 26 2009, 09:58 AM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Jan 26 2009, 11:12 AM) <{POST_SNAPBACK}>
QUOTE (Darryl @ Jan 25 2009, 06:37 PM) <{POST_SNAPBACK}>
Hi all,

My wife (Canadian+US citizen) and myself (Canadian Green card holder) have been living in the USA for about 1.5 years now. Last year we filed both US and Canadian taxes because we had moved halfway through the year and had both Canadian and US income (from our jobs). This year we've both only got US income. So my question is this - at the beginning of 2008 I sold some RRSPs that I had from when we lived in Canada (to close out the Canadian account) When I did this I paid 25% right off the top as a 'non-resident tax'. So my questions...

1. Do I have to list that sale anywhere on my US return? If so, where?
2. Do I have to file a Canadian tax return reflecting that sale, and if so is there any tips on how to file that with no Canadian (job related) income (just US work income)?

I'm wondering if this is something I need to be really careful with or if I can just do the turbo tax straight return in the USA (we have nothing complicated other than this RRSP thing) not listing anything about the RRSPs as it was in Canada and than file a simple return in Canada just listing that RRSP sale - OR - if I need to go to a professional as this is super complicated?

If anyone can shed some light here I would appreciate it - I just don't want to get stuck paying some expensive accountant a ton of money if there is an easy way to do it on my own (if it's simple).

Thanks for you help (in advance).


Darryl


1. Yes, you must report the sale of the RRSP's as a pension distribution on a 1040. You take the 25% non-resident tax as a foreign tax credit. You also must file the form to report the RRSP amount that I mentioned earlier in this thread (the number escapes me right now)

2. You have no obligation to file any return with Canada as they took out the non-resident tax.



Thanks for your help on this Zyggy! I have a couple more questions - you mention that I have to report the sale on a 1040 - do I have to report the full amount withdrawn or just the gains (total amount when we left Canada - value when cashed out)? It seems like if we put the entire sale amount in TurboTax it calculates our refund as if it's taxing that whole amount as additional income and says we have to pay like 25%-30% of the total amount - which I don't see as being possible considering we already paid the 25% non-resident tax.

I hope this isn't getting too detailed but would it be possible to provide some details on how to record all of this in TurboTax (or can it be done in TurboTax)? As for the form you mentioned - were you talking about the 1116 or 8555? Can this be done in TurboTax as well?

Thanks again - your help is greatly appreciated

Darryl





See my reply above, the full amount must be claimed as it was a tax sheltered account. I do not believe you are going to be able to file using TurboTax as Form 8891 is very likely not supported by TurboTax (It's not the most used Form). GO to their website and see which if any version supports this form. YOu will have to use 1116 to take the foreign tax credit.

Edited by zyggy, 26 January 2009 - 02:12 PM.

zyggyNot TellingCanada2009-01-26 14:11:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (KiKi @ Jan 26 2009, 09:16 AM) <{POST_SNAPBACK}>
My husband worked for Canada Post for several years and this past year he cashed out his pension. He was taxed 25% by Canada.

When filing our taxes this year (married/joint) where do we claim this money?
Do we have to claimm this money???
Is there a way to exempt this money (and if so, which form) because the taxes have been aid to CANADA

If we can, in fact, exempt this money, but still have to claim it.....will it count towards our total income for the year (and therefore losing us the EIC?)

thank you very much.


You must claim it all since it was pre-tax money in the pension. You must fill out Form 8891 which will direct you to place the appropriate amount on Line 16 of the 1040. Remember to convert the amount to US Dollars. You can take a foreign tax credit on the distribution using Form 1116.

Yes, it does count in your total income and it will be used in determining if you are eligible for the EIC. You should have received advise from a tax professional before you cashed it out and you could have avoided these issues.

QUOTE (sly_wolf @ Jan 26 2009, 11:37 AM) <{POST_SNAPBACK}>
Zyggy,

If I meet all of the other requirements, can I still use Form 2555 if I visited the US on a regular basis (ie weekends) during 2008?

Sly



Yes, I wouldn't think weekend visits would trip the substantial presence test that would make you a tax resident of the US and therefore ineligible to use the 2555.
zyggyNot TellingCanada2009-01-26 14:08:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (sly_wolf @ Jan 26 2009, 11:37 AM) <{POST_SNAPBACK}>
Zyggy,

If I meet all of the other requirements, can I still use Form 2555 if I visited the US on a regular basis (ie weekends) during 2008?

Sly



Yes
zyggyNot TellingCanada2009-01-26 13:57:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (Darryl @ Jan 25 2009, 06:37 PM) <{POST_SNAPBACK}>
Hi all,

My wife (Canadian+US citizen) and myself (Canadian Green card holder) have been living in the USA for about 1.5 years now. Last year we filed both US and Canadian taxes because we had moved halfway through the year and had both Canadian and US income (from our jobs). This year we've both only got US income. So my question is this - at the beginning of 2008 I sold some RRSPs that I had from when we lived in Canada (to close out the Canadian account) When I did this I paid 25% right off the top as a 'non-resident tax'. So my questions...

1. Do I have to list that sale anywhere on my US return? If so, where?
2. Do I have to file a Canadian tax return reflecting that sale, and if so is there any tips on how to file that with no Canadian (job related) income (just US work income)?

I'm wondering if this is something I need to be really careful with or if I can just do the turbo tax straight return in the USA (we have nothing complicated other than this RRSP thing) not listing anything about the RRSPs as it was in Canada and than file a simple return in Canada just listing that RRSP sale - OR - if I need to go to a professional as this is super complicated?

If anyone can shed some light here I would appreciate it - I just don't want to get stuck paying some expensive accountant a ton of money if there is an easy way to do it on my own (if it's simple).

Thanks for you help (in advance).


Darryl


1. Yes, you must report the sale of the RRSP's as a pension distribution on a 1040. You take the 25% non-resident tax as a foreign tax credit. You also must file the form to report the RRSP amount that I mentioned earlier in this thread (the number escapes me right now)

2. You have no obligation to file any return with Canada as they took out the non-resident tax.

QUOTE (Southern_Canadian @ Jan 25 2009, 01:26 PM) <{POST_SNAPBACK}>
Hey,

Great thread!!!

I have a few questions... I'll quickly explain my situation.

I worked in Canada all of 2008 till my move to the US which was in July of 2008. Since then, I have not worked and I do not recieve EI.

How do I go about doing my taxes??? I know that I will file one for Canada but do I add Eric on it aswell? Do I show his earnings for the year? OR just write his name to show that I am now married?

For the US taxes, what do I do???? Since I have not worked yet, do I just fill everything out with zero for earnings? OR am I able to file with Eric on his?

Last question, I am still waiting on my AP and EAD to apply for my SIN, will it be a problem that I don't have a SIN on my tax returns??

Sorry for so many questions, I just find all of this VERYYYY confusing! Any advice would be really appreciated!

Thanks!


You will not be able to file until you have a SSN, if you don't have it by April 15, file for an extension with the IRS.
zyggyNot TellingCanada2009-01-26 10:12:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (Southern_Canadian @ Jan 25 2009, 01:26 PM) <{POST_SNAPBACK}>
Hey,

Great thread!!!

I have a few questions... I'll quickly explain my situation.

I worked in Canada all of 2008 till my move to the US which was in July of 2008. Since then, I have not worked and I do not recieve EI.

How do I go about doing my taxes??? I know that I will file one for Canada but do I add Eric on it aswell? Do I show his earnings for the year? OR just write his name to show that I am now married?

For the US taxes, what do I do???? Since I have not worked yet, do I just fill everything out with zero for earnings? OR am I able to file with Eric on his?

Last question, I am still waiting on my AP and EAD to apply for my SIN, will it be a problem that I don't have a SIN on my tax returns??

Sorry for so many questions, I just find all of this VERYYYY confusing! Any advice would be really appreciated!

Thanks!



I have answered these questions previously on this thread. Please read through it and if you have any further questions, I would be happy to answer them.
zyggyNot TellingCanada2009-01-26 10:07:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (LindaB @ Jan 25 2009, 11:34 AM) <{POST_SNAPBACK}>
Hi Ziggy,

I have a few questions (hope it all makes sense!):

I am the Canadian, we got married in June 2007, and came here on my CR1 visa in July 2008. I still commute to work in Canada every day. My husband is the U.S. citizen and is on a non-taxable disability pension.

1. Last year when I was doing my Canadian 2007 taxes, I entered that I was married and put my husbands name and that he was a non-resident of Canada. I was told once that I would not enter his income in and then a tax place and someone at CRA told me I had to put it in and use the percentage to calculate from U.S. to Canadian. (I attached a letter to my income tax saying if I had done it wrong...explaining that is was a non-taxable pension to please correct it but I got back exactly what I had entered). Yesterday, I was talking to someone at a tax place and they said I should enter "zero" as his income as it is non-taxable. Is this right even in Canada? Is so, can I go back and get CRA to adjust my 2007 income tax return? Need to know for this year too.

2. If I will still be working in Canada, do I still have to fill out the "leaving Canada" form you were talking about in other posts? I know I would click on "no" in the "were you living in B.C. on Dec 31, 2008 etc.

3. Is Turbotax fairly easy to use to do your U.S. taxes if you are claiming forgein income etc? If so, I would rather do that than pay big bucks to a tax preparer.

Thanks so much for your help! (I am sure I will think of a "ton" more questions before I am finished...lol)

1. You are supposed to compute his income using the standard exchange rate (I have posted it on this thread) and report it on your return. You are correct in putting US Resident in where you put the SIN number.

2. Even though you are still working in Canada, you are no longer a resident of Canada. You need to file a leaving Canada return for this year, listing the date of your CR-1 as the date that you left Canada. However, I would actually File under Section 217 since you have earned income in Canada for the entire year. In future years, I believe you should file a non-resident return, unless there is something that could cause you to be a deemed resident of Canada (still own a house, etc.). I'm going to do some further research to confirm this.

3. In your case, I would pay for a well-qualified cross-border tax preparer to do your first year or two of your taxes. Once that is done and you get an understanding on how it works by asking your preparer lots of questions, you can use those returns as a guide and try to do them yourself. Cross border taxation, especially in your case when you live in one country and work in the other is no place where you want to do it yourself if you don't fully understand what you're doing.
zyggyNot TellingCanada2009-01-26 10:05:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (LindaB @ Jan 25 2009, 11:34 AM) <{POST_SNAPBACK}>
Hi Ziggy,

I have a few questions (hope it all makes sense!):

I am the Canadian, we got married in June 2007, and came here on my CR1 visa in July 2008. I still commute to work in Canada every day. My husband is the U.S. citizen and is on a non-taxable disability pension.

1. Last year when I was doing my Canadian 2007 taxes, I entered that I was married and put my husbands name and that he was a non-resident of Canada. I was told once that I would not enter his income in and then a tax place and someone at CRA told me I had to put it in and use the percentage to calculate from U.S. to Canadian. (I attached a letter to my income tax saying if I had done it wrong...explaining that is was a non-taxable pension to please correct it but I got back exactly what I had entered). Yesterday, I was talking to someone at a tax place and they said I should enter "zero" as his income as it is non-taxable. Is this right even in Canada? Is so, can I go back and get CRA to adjust my 2007 income tax return? Need to know for this year too.

2. If I will still be working in Canada, do I still have to fill out the "leaving Canada" form you were talking about in other posts? I know I would click on "no" in the "were you living in B.C. on Dec 31, 2008 etc.

3. Is Turbotax fairly easy to use to do your U.S. taxes if you are claiming forgein income etc? If so, I would rather do that than pay big bucks to a tax preparer.

Thanks so much for your help! (I am sure I will think of a "ton" more questions before I am finished...lol)

zyggyNot TellingCanada2009-01-26 09:52:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (Meridien @ Jan 24 2009, 12:43 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Jan 24 2009, 01:21 PM) <{POST_SNAPBACK}>
No, if you elect to treat yourself as a resident for the entire tax year, you may not use the foreign income exclusion. You delcare your election by attaching a statement to your return. You will not be able to efile if you take the election.


Thanks so much for all the advice! It is my understanding that I must make the election (to be treated as a resident for the entire year) if I want to file a joint return with my husband this year. Is that correct?


No... As long as you meet either the substantial presence test (in the US before July) or the green card test (you received your GC at any time in 2008), you are not required to make the election. You already qualify to be a resident alien for tax purposes. If you don't meet either test, then yes, you must make the election.
zyggyNot TellingCanada2009-01-24 16:15:00
CanadaThe IRS/CRA Income Tax Thread
QUOTE (mwinburn @ Jan 22 2009, 10:07 PM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Jan 22 2009, 11:43 PM) <{POST_SNAPBACK}>
2) In that leaving Canada return, you must report your income earned up to the date that you left Canada. You also proportion your deductions to the amount of time you were a tax resident of Canada.

3) Your EI income that you got AFTER you left Canada and was sent to the US (should have a US address on your EI statements) automatically took out a 25% non-resident tax. This income is NOT included on your leaving Canada return except if you opt to file under Section 217 of the Revenue Code. You DO report this income to the IRS and take the 25% non-resident tax as a foreign tax credit using Form 1116. The EI income CANNOT be excluded using Form 8555.


Okay, that's very helpful. One clarification though. You mentioned the EI incoming goes on 1116. Does the income from her canadian job (before she moved to the USA) go on 2555? Meaning I will have both forms attached to our join USA return?


You have a choice. YOu can exclude the income that was earned in Canada prior to her arriving in the US, or you can elect to be treated as a tax resident for the entire tax year and keep the income and take a foreign tax credit on it. For the EI income that was earned after she entered the US, you MUST take the foreign tax credit. That income cannot be excluded. So yes, you can have both forms attached to your return.

QUOTE (Canadia @ Jan 23 2009, 10:28 PM) <{POST_SNAPBACK}>
I have no foreign income since i have no been out of the US since oct 2007 (except to visit my family with the baby during the holidays)...and as far as i can see we meet all the criteria.
Thanks So much


In that case, you are considered a tax resident of the US anyways since you meet the substantial presence test.

QUOTE (Meridien @ Jan 24 2009, 08:28 AM) <{POST_SNAPBACK}>
QUOTE (zyggy @ Jan 21 2009, 02:28 PM) <{POST_SNAPBACK}>
You qualify for the foreign earned income exclusion as the time you were outside the US before you arrived on the K1 meets the bonafied residence test for your time outside of the US.


I just wanted to confirm that this still applies if I elect to treat myself as a U.S. resident for the entire tax year?



No, if you elect to treat yourself as a resident for the entire tax year, you may not use the foreign income exclusion. You delcare your election by attaching a statement to your return. You will not be able to efile if you take the election.

Edited by zyggy, 24 January 2009 - 01:23 PM.

zyggyNot TellingCanada2009-01-24 13:21:00