Forum	Title	Content	Member	Sex	Country	Date/Time
Canada	The 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.	zyggy	Not Telling	Canada	2009-01-24 13:21:00
Canada	The IRS/CRA Income Tax Thread	QUOTE (Canadia @ Jan 23 2009, 10:03 PM) <{POST_SNAPBACK}> QUOTE (zyggy @ Jan 22 2009, 03:40 PM) <{POST_SNAPBACK}> QUOTE (Canadia @ Jan 22 2009, 03:26 PM) <{POST_SNAPBACK}> Question I was a student in o7 in the us before we got married Feb 14 2008 we filed our paper work and i b/c a permanent resident in july....I have been in the us the whole time since oct 2007....I had my taxes done last year and was considered no longer a resident on canada....so this year would I be considered a resident for the whole year or what do I need to do?? If you filed a leaving Canada return with the CRA International Services Office in 2007, you need to do nothing further with them in 2008 unless you received Canadian income that did not have the 25% non-resident tax taken out. You would continue to file a US return with the IRS. Can we take the EIC and Child Care Credit then ??? And am I considered a resident for the full year ??? If you elect to treat yourself as a resident for the entire tax year. If that is the case, you must declare all of your foreign income for the entire tax year. You will not be able to exclude your income using Form 2555 but you can take a foreign tax credit and you have a Social Security Card that does not say "Not valid for employment" . And you meet the other criteria, then yes, you would be eligible for EIC. Need to verify child care credit, but EIC is generally more stringent than Child Care.	zyggy	Not Telling	Canada	2009-01-24 00:20:00
Canada	The IRS/CRA Income Tax Thread	QUOTE (sly_wolf @ Jan 23 2009, 12:44 PM) <{POST_SNAPBACK}> QUOTE (zyggy @ Jan 22 2009, 11:48 PM) <{POST_SNAPBACK}> Bona fide residence would be the correct choice. You must include her EI income and take a foreign tax credit on the 25% non-resident tax. You must convert the funds to US dollars. For 2008, the official exchange is 1.0660. You can exclude the income amount that she made before she became a resident or you can take a foreign tax credit on that as well. Zyggy, what is the source for the 2008 exchange rate? Sly Federal Reserve QUOTE (Meridien @ Jan 23 2009, 09:30 AM) <{POST_SNAPBACK}> Another question for you... I am filing a leaving Canada return this year. After I established my residency in the US, I continued to do some contract work remotely for my employer in Canada. They are a Canadian company with no US presence, I was paid in Canadian dollars, deposited into my Canadian bank account. They paid me as an independent contractor and did not deduct any taxes. I am filing a Schedule C in my US taxes to report these earnings. I am wondering if I need to report the earnings on my Canadian return as well. My understand is that I do not need to report income earned after my Canadian residence has ended - However the fact that it was a Canadian employer makes me think that maybe I do need to report it. Will I owe the 25% non-resident tax on this money? It is a relatively small amount of money - less than $10,000. Thanks! As you were not paid as an employee but as a contractor, you are only responsible for paying income taxes to the US as the work was performed in the US. Filing the Schedule C is absolutely appropriate in this case. You do not need to report anything to CRA.	zyggy	Not Telling	Canada	2009-01-23 16:11:00
Canada	The 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? FOr the income that was earned prior to her residing in the US, you have the choice to exclude it using 2555 or take the foreign tax credit using Form 1116. Take the option that gives you the best tax treatment (state taxes count as well). QUOTE (lynamon @ Jan 23 2009, 07:07 AM) <{POST_SNAPBACK}> I have a question about child support. I have been living in the US for over a year and a half and my child support payments are deposited into my Canadian account. Do I have to report and pay taxes on these amounts now that I'm in the US? (these amounts would not have been included on my Canadian tax return as they are tax exempt in Canada) Child support is not taxable income in the US. So you would not report it. Edited by zyggy, 23 January 2009 - 10:39 AM.	zyggy	Not Telling	Canada	2009-01-23 10:38:00
Canada	The IRS/CRA Income Tax Thread	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.	zyggy	Not Telling	Canada	2009-01-22 23:57:00
Canada	The IRS/CRA Income Tax Thread	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.	zyggy	Not Telling	Canada	2009-01-22 23:51:00
Canada	The IRS/CRA Income Tax Thread	QUOTE (mwinburn @ Jan 22 2009, 08:33 PM) <{POST_SNAPBACK}> Okay, I'm confused about how EI fits into this. Here is our situation... I'm the US citizen. My wife is Canadian. She came here on the K-1 in April and we were married in May. She has an SSN and a green card. She had a Canadian job until she came here. After she arrived, she started collecting EI and collected it through the end of the year. For my US tax purposes, do I just total up her income from her job and the payments from EI or are they treated differently? Also, TurboTax is asking me about "physical presence" versus "bona fide residence". Do I just use "bona fide residence" and list the period as the 12 month period ending the day before she moved to the USA? (Or maybe her birth date until the day before?) For her Canadian taxes, again, how does her job income compare to her EI income (all EI income happened after she arrived in the USA) Thanks! Bona fide residence would be the correct choice. You must include her EI income and take a foreign tax credit on the 25% non-resident tax. You must convert the funds to US dollars. For 2008, the official exchange is 1.0660. You can exclude the income amount that she made before she became a resident or you can take a foreign tax credit on that as well.	zyggy	Not Telling	Canada	2009-01-22 23:48:00
Canada	The IRS/CRA Income Tax Thread	QUOTE (mwinburn @ Jan 22 2009, 08:33 PM) <{POST_SNAPBACK}> Okay, I'm confused about how EI fits into this. Here is our situation... I'm the US citizen. My wife is Canadian. She came here on the K-1 in April and we were married in May. She has an SSN and a green card. She had a Canadian job until she came here. After she arrived, she started collecting EI and collected it through the end of the year. For my US tax purposes, do I just total up her income from her job and the payments from EI or are they treated differently? Also, TurboTax is asking me about "physical presence" versus "bona fide residence". Do I just use "bona fide residence" and list the period as the 12 month period ending the day before she moved to the USA? (Or maybe her birth date until the day before?) For her Canadian taxes, again, how does her job income compare to her EI income (all EI income happened after she arrived in the USA) Thanks! Okay... This will answer both questions above. 1) You must file a leaving Canada return if you ceased being a tax resident of Canada in 2008. 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. 4) If you opt to file under Section 217, this means that you freely choose do your return based on your worldwide income. This means you can use all of the deductions for the entire tax year. You include all of your income made inside and outside of Canada. You also report the 25% non-resident tax EI automatically took out as a Canadian tax and you can also take a foreign tax credit if you had taxes on additional income made in the US. You should only file as Section 217 if you believe you will get a bigger refund (get a portion of the 25% non-resident tax back) than if you just do a normal leaving Canada return. Doing a Section 217 is not good for most people (your total worldwide income would place you in or over a combined 25% tax bracket (federal and provincial)) It is good for people if they had little Canadian income in 2008 (entered early in the year) and had very little US income or only EI income for the rest of the year. If you do a quick T1 and see that your income would place you over 25% taxes, then Section 217 is not for you.	zyggy	Not Telling	Canada	2009-01-22 23:43:00
Canada	The IRS/CRA Income Tax Thread	QUOTE (Canadia @ Jan 22 2009, 03:26 PM) <{POST_SNAPBACK}> Question I was a student in o7 in the us before we got married Feb 14 2008 we filed our paper work and i b/c a permanent resident in july....I have been in the us the whole time since oct 2007....I had my taxes done last year and was considered no longer a resident on canada....so this year would I be considered a resident for the whole year or what do I need to do?? If you filed a leaving Canada return with the CRA International Services Office in 2007, you need to do nothing further with them in 2008 unless you received Canadian income that did not have the 25% non-resident tax taken out. You would continue to file a US return with the IRS.	zyggy	Not Telling	Canada	2009-01-22 17:40:00
Canada	The IRS/CRA Income Tax Thread	QUOTE (melusine @ Jan 22 2009, 11:17 AM) <{POST_SNAPBACK}> Awesome ! Thank you ! And if I took out my REER (retirement thing) and paid taxes on it does it count as income as well ? Yes it does. CRA should take out a 25% non-resident tax on it. You take this as a foreign tax credit or if you did it while you were in Canada you can exclude it. Edited by zyggy, 22 January 2009 - 05:04 PM.	zyggy	Not Telling	Canada	2009-01-22 17:02:00
Canada	The IRS/CRA Income Tax Thread	QUOTE (melusine @ Jan 21 2009, 05:08 PM) <{POST_SNAPBACK}> I am checking all the guides and my biggest question so far is.... For the IRS (federal US) part of things.... I will make the choice to be treated as US residents for the entire tax year I will fill married joint I "earned" a few months of welfare in Quebec... is it considered as income (even if it's welfare) or taxable income ?? Should I add it or no on my 1040 ? Is is considered income and must be reported to the IRS. However, you can exclude the income or take a foreign tax credit for it.	zyggy	Not Telling	Canada	2009-01-22 12:52:00
Canada	The IRS/CRA Income Tax Thread	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.	zyggy	Not Telling	Canada	2009-01-21 18:10:00
Canada	The IRS/CRA Income Tax Thread	QUOTE (sly_wolf @ Jan 21 2009, 02:10 PM) <{POST_SNAPBACK}> Zyggy, you are the best One more puzzle. I got married in 2008 and also fall under the IRS's Substantial Presence Test. Because I lived and worked in Canada in 2008, my tax home is Canada. Can I just chose whether I take the Foreign income exclusion versus the Foreign tax credit? Sly Yes... Choose the one that gives you the best tax situation. Don't forget to include any state taxes in your analysis. (i.e. most state taxes are based on the Adjusted Gross Income calculated on the Federal 1040, the exclusion lowers this amount) Edited by zyggy, 21 January 2009 - 04:14 PM.	zyggy	Not Telling	Canada	2009-01-21 16:13:00
Canada	The IRS/CRA Income Tax Thread	QUOTE (daisylynn @ Jan 21 2009, 02:01 PM) <{POST_SNAPBACK}> I'm so confused I am a USC who was living with my husband (a Canadian citizen) in Canada. We moved to the US in June 2008 when he got his permanent residency. He began working in the US in August. So, I think I'm understanding that he has to file with Canada (first? or does it matter) and then file with the US, with proof that he filed in Canada? Or am I getting that all wrong? I keep reading about filing world income to the US, using his Canadian income. I don't understand. Also, I don't work so does he file married, filing single and then I just don't file? Or does he file married filing jointly and then I just report $0 earnings? We have 3 kids if that makes a difference. I have been asking around and reading the IRS forms, but nothing is clear to me. Then I remembered what a great resource VJ was and thought I'd ask the 'pros' Thanks for the help! It's really not that hard. 1) SInce he became a Permanent Resident in the US in 2008, he must file a return to the IRS and report his worldwide income. 2) Since you are married, you must file as married.. either as married filing single or married filing joint. It is almost always more advantageous to file as married filing joint.. This is especially true if you don't work. 3) See my response above, but your husband will be permitted to either a) Exlclude the income earned in Canada by filing Form 8555 with his 1040 or Take a foreign tax credit for the taxes he paid in Canada using Form 1116 4) Your husband must also file a Leaving Canada T1 return with CRA. To do this, you put the date he left Canada on the T1 and you must proporation exclusions by the days he was in Canada. He only has to file using the income he earned in Canada while he was a reisdent there. He does not include any income where the CRA took out the 25% non-resident Tax, unless you opt to file a leaving Canada retirn under Section 217 of the Revenue Code. In this case, one file a T1, but include all of their worldwide income, including the 25% non-resident taxes paid and any foreign income credits one would pay in the US. In almost all cases, it is not beneficial to file under Section 217 unless one had no income in the US other than Canadian EI for the rest of the tax year. Edited by zyggy, 21 January 2009 - 04:10 PM.	zyggy	Not Telling	Canada	2009-01-21 16:05:00
Canada	The IRS/CRA Income Tax Thread	QUOTE (jedinite @ Jan 21 2009, 01:14 PM) <{POST_SNAPBACK}> zyggy I want to know do I have to file for taxes for the 2008 tax year in the US. 1) I only lived and earned income in Canada for 2008 2) I received my CR-1 Visa at the beginning of Dec 2008 and activated it mid-Dec 3) Previous to 2008 I was filing tax in the US as I was working there with TN-1 Visa (Filed for taxes for the years 2001-2007) I heard that I may have to fill out form 8055 for Foreign Input Tax Credit Finally, my last question if I have to file taxes, how does IRS handle dividend payments for Small Business owners? 4) Worked 4 months in 2008 as a temporary employee - assuming this is handled regularly with input tax credit 5) Had to register my own corp for IT consulting, therefore paid myself dividends as a business owner. In Canada you are not charge for taxes under $30K approximately, you pay what your business owes right? So how will this be reflected in my filing 2008 tax return to the IRS. Thanks for the help. 1) Per the Green Card Test, since you became a permanent resident of the US in 2008, you must report all of your worldwide income to the IRS in 2008. I'm going to have to do some research on the other points... Is your business a Canadian business, or a US one. Were your business operations perfromed in the US or Canada in 2008? Worked as a temp employee for whom? Was it in US or Canada? I'm not as familiar with Cross Border Business Taxes as I am with Individual Taxes, so you'll have to bear with me on this one... Edited by zyggy, 21 January 2009 - 03:43 PM.	zyggy	Not Telling	Canada	2009-01-21 15:40:00
Canada	The IRS/CRA Income Tax Thread	QUOTE (Meridien @ Jan 21 2009, 12:22 PM) <{POST_SNAPBACK}> You are a lifesaver! Here is my question, and I'm sure it's a pretty common one. I arrived in the US in May 2008 on a K-1 Visa. I now have my green card, so I quality as a Resident Alien. I want to file jointly with my husband, so I am electing to be treated as a resident for the full year, rather than filing as a dual-status alien. I understand that this means I will be required to pay US taxes on my Canadian earnings. So far so good. I am trying to figure out what to do with my Canadian income which I earned before I arrived. Where do I declare this income? I am filling out the 'Foreign Earned Income' section in Turbo Tax - and I'm a little confused about whether I qualify for the Foreign Earned Income exclusion. Thanks! 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. See the following from IRS Publication 54 Bona fide resident for part of a year.<A class=indexterm name=d0e2824> Once you have established bona fide residence in a foreign country for an uninterrupted period that includes an entire tax year, you are a bona fide resident of that country for the period starting with the date you actually began the residence and ending with the date you abandon the foreign residence. Your period of bona fide residence can include an entire tax year plus parts of 2 other tax years.	zyggy	Not Telling	Canada	2009-01-21 14:28:00
Canada	The IRS/CRA Income Tax Thread	QUOTE (sly_wolf @ Jan 21 2009, 11:25 AM) <{POST_SNAPBACK}> QUOTE (sly_wolf @ Jan 21 2009, 12:57 PM) <{POST_SNAPBACK}> QUOTE (zyggy @ Jan 21 2009, 12:53 PM) <{POST_SNAPBACK}> By popular demand, I am beginning a thread to share everyone's eventual cross border tax issues so it can be kept in one central place and can be continually used as a resource in this and coming years. So feel free to post and share the love and information. Zyg Wow, that was quick. Great stuff! Sly Let me be the first to post here I have Quebec employment income. What do I report as income in the US .... the Canada T4 amount or the Quebec amount? I have Canadian deductions at source such as RRSP's and alimony. What do I report as income in the US ... the net amount or the gross amount. If it's the gross amount, how and where do I apply the deduction on the US tax forms? Which Canadian taxes do I include to calculate the foreign tax credit .... does this include deductions for QPP and UI tax? Sly 1) I would use the amount on your T1. 2) Per the latest convention of the US/Canada Tax Treaty, your contributions to your RRSP are tax deductible in the US and would not be included in any foreign source income you report in the US. However, you must report the total amount in your RRSPs each year to the IRS by using Form 8891 See Paragraphs 10, 11and 12 of Article XVIII of the US/Canada Tax Treaty 10. Contributions made to, or benefits accrued under, a qualifying retirement plan in a Contracting State by or on behalf of an individual who is a resident of the other Contracting State shall be deductible or excludible in computing the individual's taxable income in that other State, where: (a) The individual performs services as an employee in the first-mentioned state the remuneration from which is taxable in that State and is borne by an employer who is a resident of that State or by a permanent establishment which the employer has in that State; and ( The contributions and benefits are attributable to those services and are made or accrued during the period in which the individual performs those services. This paragraph shall apply only to the extent that the contributions or benefits qualify for tax relief in the first-mentioned State. 11. For the purposes of Canadian taxation, the amount of contributions otherwise allowed as a deduction under paragraph 10 to an individual for a taxation year shall not exceed the individual's deduction limit under the law of Canada for the year for contributions to registered retirement savings plans remaining after taking into account the amount of contributions to registered retirement savings plans deducted by the individual under the law of Canada for the year. The amount deducted by an individual under paragraph 10 for a taxation year shall be taken into account in computing the individual's deduction limit under the law of Canada for subsequent taxation years for contributions to registered retirement savings plans. 12. For the purposes of United States taxation, the benefits granted under paragraph 10 shall not exceed the benefits that would be allowed by the United States to its residents for contributions to, or benefits otherwise accrued under, a generally corresponding pension or retirement plan established in and recognized for tax purposes by the United States. For purposes of determining an individual's eligibility to participate in and receive tax benefits with respect to a pension or retirement plan or other retirement arrangement established in and recognized for tax purposes by the United States, contributions made to, or benefits accrued under, a qualifying retirement plan in Canada by or on behalf of the individual shall be treated as contributions or benefits under a generally corresponding pension or retirement plan established in and recognized for tax purposes by the United States. Alimony is also covered under the same section of the tax treaty and is also not included in your net foreign income that you report to the IRS. 3) FOr the IRS, you would include the amount of foreign taxes paid on your T1 and the 25% non-resident tax paid on your EI income. YOu would take the Quebec amount as a foreign tax credit on your applicable state taxes. If you have no state taxes, I believe taking it on your 1040 would be appropriate. Edited by zyggy, 21 January 2009 - 02:21 PM.	zyggy	Not Telling	Canada	2009-01-21 14:19:00
Canada	The IRS/CRA Income Tax Thread	By popular demand, I am beginning a thread to share everyone's eventual cross border tax issues so it can be kept in one central place and can be continually used as a resource in this and coming years. So feel free to post and share the love and information. Zyg	zyggy	Not Telling	Canada	2009-01-21 12:53:00
Canada	POE question	when you fly from Canada to the United States, whichever airport you fly out of will be your POE .. you don't have a choice, you have to hand over your visa packet at customs & immigration in Canada before you fly out of Canada Sorry, Marilyn.....Correction.......not every airport in Canada is a POE, you may have to go through customs after you leave Canada. When I flew to Boston in October, I flew from Newfoundland to Halifax to Boston.........Boston was my POE (I went through customs there). But you are right about Toronto being a POE (and bigger airports...........Halifax will one in the future). Good luck and God bless in your journey..............{{{{{{{{{{{HUGS}}}}}}}}} yeah, I thought there was one that wasn't and I thought it was Halifax but I wasn't 100 percent sure Quebec City doesn't either... or Hamilton... or lots of other smaller cities and airports	zyggy	Not Telling	Canada	2006-03-03 08:45:00
Canada	Canadian RRSP withdrawal and our US taxes	QUOTE (Texanadian @ Jul 23 2008, 09:44 PM) <{POST_SNAPBACK}> Withdrawing the RRSP from Canada when you live in the US is the easy part. They deduct 25% before you get the money. Canada is done. Quebec may have a non-resident tax. I don't know about Quebec. They do tend to have a different tax system than the other provinces. But the answer you're looking for is NO, you do not have to file a Canada tax return on that money at the end of the year. Same with Canada EI. They take the 25% non-resident tax off when they send you money in the US and that's it. No return necessary. I would advise withdrawing that money quickly. The reason being is that although Canada allows that money to grow tax free until you take it out, the USA doesn't allow RRSP's to grow tax free the same way. They see it as nothing more than a regular savings account that's growing. This means you will be paying US income taxes on any unrealized RRSP growth every year that you leave it in Canada. Will they catch you? Who knows. Probably not. But I wouldn't like to have to owe back taxes down the road. US states also tend to charge you tax on your unrealized RRSP gains as well. On the US side, you can take the Foreign tax credit. I forget the exact form number for it. But you get an $80,000 exemption before you have to pay US taxes. And even if you did pay US taxes, you would take a credit for Canadian taxes already paid (the 25% they took off as non-resident tax). Leaving you with no taxes owing in the US (unless you are a high income high tax person which most of us aren't) Get that money out of your RRSP is the message you need to take away from all of this. Not only are you being taxed on it in the US, but as a non-resident of Canada, you aren't allowed to change your portfolio around. You need to be a Canadian resident to do that. The exemption is only if you qualify as a non-resident... which is not the case in this instance. They would have to declare it as income and take the foreign tax credit.	zyggy	Not Telling	Canada	2008-07-24 11:27:00
Canada	Canadian RRSP withdrawal and our US taxes	QUOTE (pegbert64 @ Jul 23 2008, 02:15 PM) <{POST_SNAPBACK}> Hi... I'm chiming in a bit late on this, but I am wondering a few things.... 1) I'm the Canadian, now a US PR, living in the US with no intention of returning to Canada to live 2) Just called RBC and cashed out one of my RRSPs (the other is a non-redemable GIC, so I have to wait until the term is up). Since I no longer have any bank accounts with RBC, the lady said they will mail me a check. 3) She said the withholding will be 25% 4) She said that IN ADDITION to the 25% withheld, I will have to pay income tax on the amount cashed out. I have not filed a Canadian tax return since the 2005 tax year (I entered the US early in 2006, fell in love, ended up getting married, blah blah blah..... no income in either country). For 2006, I asked my Canadian tax accountant if I needed to file anything, and he said NO, because I had no income to report. For 2007, my husband and I filed jointly in the US. So, when I get this RRSP check, where do I claim this? In Canada, or in the US? Or both? I'm assuming that I claim it in the US on our joint tax return. Do I then use the 25% withheld as a tax credit? I'm not a Canadian resident, so I don't think I need to file anything there? Correct? Oh, and I've spent hours reading the Serbinski forums, and it's all greek to me..... surely it can't be that complicated!! Thanks! Not true... your only obligation to Canada is the 25%. You do not have to file a Canadian Tax return. You do have to report the distribution on your US tax return and take the 25% witholding as a Foreign Tax Credit as described by one_day earlier. Depending on your own personal income, you may qualify for a partial refund of the 25% withheld by CRA by filing a Section 217 return with CRA. Edited by zyggy, 23 July 2008 - 05:42 PM.	zyggy	Not Telling	Canada	2008-07-23 17:40:00
Canada	The IRS/CRA Income Tax Thread	I need alittle insight, I worked and lived in canada in 2011 until aug 4th when i moved to the us on a cr1 visa I have not worked in the us in 2011 , do I have to file a taxes with IRS or just do my T1 Tax form in canada. Along with the T1 form is there any other forms I need. My wife is a USC and works. My wife never lived in canada or worked there, so she does not have a SSN card. Do we Just file as single for last year so everything doesn't get messed up? We married in 2010 and filed as single for the 2010 taxes, does it matter?. 1) If you were married in 2010, you must file as married in 2010. You cannot file as single, unless you meet one of the exemptions, which you would not. You'll have to amend your 2010 return to reflect that, but you'll likely get more money back if you do file as married filing joint. In your case, she would declare you as a resident for tax purposes, and subsequently exclude your Canadian income in 2010. 2) As a permanent resident in 2011, you do have a filing requirement. You would file jointly with your spouse in 2011. I doesn't matter if you make no income, your household with your spouse does. Your spouse could also file as married filing single, but the IRS take a dim view of filing that way and stacks the tax code accordingly. There are very few reasons why filing as married filing single would be more beneficial, more so since you didn't work. Same case applies, you would report your Canadian Source Income, and subsequently exclude it using the forms and procedures expalined on this thread. If you have any RRSPs and bank accounts having more than $10,000 between all of them, you must report your accounts to the US Treasury. See the rules for reporting these account on the following website http://www.irs.gov/b...=148849,00.html	zyggy	Not Telling	Canada	2012-01-27 14:31:00
Canada	The IRS/CRA Income Tax Thread	My husband (the Canadian) and I got married in July 2010. He quit his job in Canada about a week before he crossed the border (end of June). We finished his AOS Oct. 2010 and he got a job a couple days later. He worked for a month and made $2275. He was unemployed and received EI for Nov. and Dec. 2010. I am trying to use turbotax. Can we exclude his income from Canada (for Jan. to June 2010 and his EI for Nov. and Dec. 2010)? In the little "questions turbotax asks", it says "Was my husband a citizen in 2010, or became one?" I said yes because he AOSed and became a permanent resident. Is this correct? We stated that my husband is required to pay foreign taxes on the income he received. When my husband does his Canadian taxes will he be claiming "nonresidency" status in Canada? To qualify for the foreign income exclusion would it be better for my husband to use bona fide resident test or the physical presence test? I used the bona fide resident test using his birthday as when he started living in the foreign country and June 30, 2010 as the day he left. You can exclude his income in Canada until June. You must report any income earned after his entry... even if is foreign income. So he will have to report the EI and take a foreign tax credit against it. No your husband is not a Citizen, so you would answer no. Your husband will have to file a "leaving Canada" return that include his income up to the date he left Canada. There is a lot of coverage on what that consists of on this thread. In your case, he would qualify under both.	zyggy	Not Telling	Canada	2011-04-07 10:39:00
Canada	The IRS/CRA Income Tax Thread	Hi! USC hubby and I have been married since 2007 but he has been filing single. I've POed in March 2011. I'm wondering if there is any benefit to amending his 2007-2009 taxes to filing as maried jointly? If so, what do we have to do?--does he write in to the IRS to elect to treat me as resident alien for tax purposes and I to fill out Form 2555? Help! Yes, there should be a benefit. He would have to file an 1040X for each of the years to amend his income tax. Maybe someone can help out with my situation.. I'm a mexican natioan and hold a Permanent Resident card in Canada. In May 2010 my company transfered me to the US under a L-1A visa. I got married in October 2010 with a French citizen and we live together in the US. I wonder how to file my taxes in the US. Can I file married filing jointly?, do I file CAD income and obtain tax credits? do I have to report my wife's France (from Jan-Sept) income even though she was in the US only for 3 months? Any help would be greatly appreciated I guess the first question is what is your wife's status....	zyggy	Not Telling	Canada	2011-04-06 07:38:00
Canada	The IRS/CRA Income Tax Thread	You can always call the IRS and see if your return has been posted to their system yet. We were waiting to order transcripts for an amended return and the agent was able to tell us that the return had be processed but not yet posted so we didn't bother to order the transcripts. Called back again a week later, still not posted because someone "forgot". The agent said it could take up to 6 weeks but I suspect she would be doing it asap as she was very apologetic about the mishap. WHen you get your refund, it will be in their system and you can request the transcript.	zyggy	Not Telling	Canada	2011-03-21 08:14:00
Canada	The IRS/CRA Income Tax Thread	I have posted this before in another tax thread and of my own thread. Still not getting my questions answered. So I will post it in the last tax thread in hopes that somewhere I will get some answers. I am the US citizen but I am living with my husband in Canada with him. (Have been for two years) I haven't earned any worldwide income and we got married in May 2010. He is not immigrating to the US but we are currently awaiting Canada's decision on our application for me to immigrate there. I just now found out that I need to file a US tax return since I got married last year. I have never filed a US tax return before because it wasn't needed. Now I am not sure what forms I need to fill out, where to mail it to, etc. I am planning on filing as "married filing separately" since my husband doesn't have an ITIN or SSN. And I know that I should fill out the spot as NRA or NR in the spot where it asks for his SSN number. And I will include a letter explaining our situation. I just want to make sure I am going about things in the right way. Here are my questions: 1. Usually when you applied as "married filing separately" you would both be filing separately but my husband doesn't need to, will he get in trouble for that later on? 2. What address do I mail the return to? 3. How long does it take to get a reply back about it? 4. Do I apply with my address from the US or here in Canada? 5. What forms do I need to mail since I am living abroad with my husband? 6. What is tax with-holding? 7. My income is zero, how would I fill this out? 8. Will my husband's income play a factor into my return? 9. Will I get a refund even with no income, if so would they mail it abroad and could I still cash it here? I know we got to get this done soon so I would appreciate any answers/tips you can give to us soon. I just don't want to get in trouble later on down the line and looking for a fairly simple way about this. Looking forward to your responses. Thank you! If you had no income, then you don't need to file a return. As long as your spouse is not a US Permenent Resident or a US Citizen, you don't need to include him on a US tax return and your income stands on it's own. If you didn't work, you are below the filing threshold and are not required to file.	zyggy	Not Telling	Canada	2011-03-17 08:42:00
Canada	The IRS/CRA Income Tax Thread	Thanks everyone for the guidance with this topic. I have read the Canadian revenue agency site as well, but cannot confirm one thing and am hoping that someone could chime in. Left Canada in Dec if 2010. My daughter who turned 18 in March of 2010; lived with me - she graduated in June of 2010. Can I claim her = to a dependant and if so how do I know how much I can claim her for.??? Thanks in advnace! You can claim her this year as a qualifying child if she lived with you for more than half the year or attended school, she will not qualify as a qualifying child next year unless he is a student. However, next year, she may qualify as a qualifying relative if you meet those tests. See Publication 17 for more information on the qualifying relative tests. Rules for Qualifiying Child. Relationship Your son, daughter, adopted child1, stepchild, foster child2 or a descendent of any of them such as your grandchild Brother, sister, stepbrother, stepsister or a descendant of any of them such as a niece or nephew <LI>Age. At the end of the filing year, your child was: Younger than you (or your spouse if married filing jointly) and younger than 19, or younger than 24 and a full-time student Any age if permanently and totally disabled3 <LI>Residency Child must live with you in the United States4 for more than half of the year. <LI>Joint Return The child cannot file a joint return for the year, unless the child and the child's spouse did not have a filing requirement and filed only to claim a refund.	zyggy	Not Telling	Canada	2011-03-07 10:07:00
Canada	The IRS/CRA Income Tax Thread	So i spoke to my tax acct. unfortunately, the guy that helped me last year doesnt work at the office anymore so someone else is helping me and she has talked to other offices near the border regarding my taxes. They said It is voluntary to file my T4E b/c it is "passive" income (it is 4K & 1K in taxes)??? and I dont need to ammend my taxes to include my T4E. Is this right? ...... she also said, if i ammend my taxes, my income would increase and I will end up paying IRS even with 1116. I stayed in US all year. I have no ties to canada. But, this is confusing. i thought I had to report all world wide income. Is this true that its voluntary? if it is, i'd rather not report it since the best situation for me is not to file it. No it is not voluntary. Income is income whether it is passive or not and must be reported.	zyggy	Not Telling	Canada	2011-03-07 09:57:00
Canada	The IRS/CRA Income Tax Thread	Hi thanks for answering earlier zyggy! I'm curious about the non-resident state return. Is it possible to file a non-resident state return if you own a home in Nebraska? I know I left that out earlier but I didn't know you could do something like file two state returns. How does it work filing joint Idaho and non-res Nebraska returns? Could you explain it in laymans terms for my understanding? if its to long to explain thats fine don't bother lol. Federal law states that the state that the servicemember is a resident of at the time of the start of their service is their state of residence, no matter if they purchase a house, etc. However, at any time that servicemember may opt to change their state of residence. A lot of military members change their state of residence to a state that has no income tax as soon as they are stationed there, i.e. Texas, Washington, Florida, etc. This protection is also afforded to the servicemember's spouse and minor children. Therefore, your residence is Idaho and not Nebraska. See the following from the Publication from the Nebraska Department of Revenue, Nebraska Income Tax for Military Servicemembers (their Spouses) Servicemember and Spouse. An individual's legal residence is the same as his or her place of domicile. The place of residence at the time of entry into the service is presumed to be the state of legal residence and remains so until legal residence in another state is established. Military assignments do not affect the servicemember's or spouse's domicile. No change of legal residence (domicile) results from moving to a new location for a limited period of time, such as under a temporary duty (TDY) assignment. A permanent change of station (PCS) order also does not automatically change legal residence. Physical presence in a state by the servicemember does not necessarily establish domicile in that state. Because of certain federal law restrictions, Nebraska's six-month automatic residence provision does not apply to the military servicemember or spouse. The military servicemember or spouse, however, may choose to change his or her legal residence. Unless the servicemember or spouse produces adequate evidence, and has the intent to change his or her legal residence (see Change of Legal Residence below), the Servicemembers Civil Relief Act prevents a change in legal residence solely because of physical presence in a state. A spouse with the same legal residence in another state as the servicemember, who has been required to file as a Nebraska resident in prior tax years, does not have to file as a resident for 2009 or later years because of changes in federal law. To receive a refund of Nebraska income tax withholding, file Form 1040N and Schedule III as nonresidents. On line 66 of Schedule III enter zero and write "Exempt Nonresident Military Spouse" on the line provided. Contact your state of legal residence regarding filing and estimated tax requirements. The tax returns for prior years cannot be amended to nonresident returns because the federal law changes are not retroactive. So in your case, if you had Nebraska tax withheld from your employer, you will need to file a Nebraska Return and file as a non-resident. You will get all the income tax from Nebraska witheld back. File a Nebraska Nonresident Employee Certificate, Form 9N with your employer and they will stop witholding Nebraska tax. See if they will withold Idaho tax for you. If they are a national employer, they should have no problem with that. If your national employer will not withhold Idaho taxes, you will have to pay estimated taxes on your income to Idaho each quarter. Use Idaho tax form 40V to do so. You will now have to file an Idaho return as a resident and declare the income you earned in Nebraska as Idaho income. Since you most likely did not pay estimated taxes to Idaho, expect to be writing them a check for the taxes on your earnings. Zyg Edited by zyggy, 17 February 2011 - 09:35 AM.	zyggy	Not Telling	Canada	2011-02-17 09:34:00
Canada	The IRS/CRA Income Tax Thread	No but it seems that a lot of people have the same/similar situations Maybe so, but I take the view that if something isn't cookie cutter, people can take something and either take it incorrectly or think it applies to them when it really doesn't and never ask. For taxes, I would much rather hear the individual case and then answer it.	zyggy	Not Telling	Canada	2011-02-16 16:20:00
Canada	The IRS/CRA Income Tax Thread	There should be a step by step wiki on how to do the taxes. Just saying. Except these taxes aren't so easy, especially not in a one size fits all wiki.... If they we're easy, no one would be asking me questions. Zyg	zyggy	Not Telling	Canada	2011-02-16 14:48:00
Canada	The IRS/CRA Income Tax Thread	Hi there! I am in a bit of a different situation than most here. Well I am currently being sponsored to Canada by my husband but waiting approval. I have not found much help on Canadian immigration forums about tax purposes other than regarding just the CRA and that is why I have come here as it is a bit more specific to the US side of things. This year will be our second year filing with the CRA. I am the US citizen and am turning 21 soon. I haven't ever filed a tax return as at the time it was my understanding that you didn't need to if you made under a certain amount. I only made $70 for a temporary position 2 years ago so didn't file a return. I have been "visiting" with my husband in Canada for 2 years now in March. I have not earned any income but he has earned Canadian income. Anyway here are my questions: I was wondering if I should file for a tax return this year seeing as I am now married? If I need to what would be the best way to go about this seeing as I don't have any foreign or US income and living in Canada? Should I file jointly or separately? Does he need a temporary tax number and does it take long to get? And would I be punished for not filing a tax return yet? Sorry for so many questions but I am hoping to reach some relief here by having these questions answered. We would be eternally grateful if you could. As you all know, filing for one country is confusing enough as it is but add another country it is definitely confusing and especially when you haven't ever filed a return to begin with. Thanks in advance if you can help us. As a US CItizen living outside the US, A US Citizen must report their worldwide income. However, since you personally earn less than the amount required to file, you are not required to file a 1040 with the IRS. If you make less than the amount needed to file, you do not have to file no matter where that income is earned. As he is not a resident alien or a US Citizen, you are not required to report his income to the IRS. In future, if you do earn more than the filing threshold, in your case, I would file as married filing separate and exclude the foreign income. You would be required to get an ITIN number for your husband. It does take some time and you would be required to go to an agent to do the paperwork for you or visit an IRS office in Canada. The IRS website has addresses for both.	zyggy	Not Telling	Canada	2011-02-16 09:41:00
Canada	The IRS/CRA Income Tax Thread	Does anyone know anything about having to be in the US FOR 31 days in order for my usc husband to file as married together with me???? I arrived in the US on Dec3 2010... thanksssssssss You USC husband can elect to treat you as a resident alien for tax purposes at any time no matter how long you have been married or where you live. It just has to be done in writing.	zyggy	Not Telling	Canada	2011-02-16 09:35:00
Canada	The IRS/CRA Income Tax Thread	ok Guys...I need some clarification and answers....I've read and read and the more I do, the more confused I become. I p.o.e'd., in Dec., of 2010; I worked in Canada right up until end of Nov ember of 2010 - So..I understand I need to file an exit return in Canada...But...we married in December of 2010, so my husband USC, is gearing up to file his taxes and would advice and what is the best route for us to take. We file as married/together - understood....but then what....Is my Canadian income going to hurt as far as us having to owe the irs?...By filling out the 2555 (believe it is-form to exempt foreign income) does this mean we do not have to claim my Canadian income here as i will have to in Canada? Is there a difference between exemption from foreign income and foreign income exclusion? As far as my status goes in Usa - do i file as non resident alien? I do have my ssn but have only recently filed for aos. Can't thank you enough in advance for help. Your Canadian income will cost slightly more than if you weren't there at all, but the increases presonal exemptions usually is more beneficial. Even though you are a non-resident alien for tax purposes, your spouse can elect to treat you as a resident alien in 2010 by claiming that option in writing. You would use Form 2555 to exclude your foreign income earned in Canada. However, you must claim EI income you earned in the US as regular income and take the 25% non-resident tax as a Foreign Tax Credit.	zyggy	Not Telling	Canada	2011-02-15 12:39:00
Canada	The IRS/CRA Income Tax Thread	My husband and I file state tax for Idaho even tho we live in Nebraska. ( hes in the military and his home state is Idaho ) We will file the same way this year again married joint Idaho state. But next years taxes, I will have been working in Nebraska for a while(hopefully if I don't lose my newly acquired job lol) -- Will we still be able to file Joint State taxes for Idaho? Yes Or will we have to file married separate and then Idaho and Nebraska state taxes? You can file a separate non-resident state return for Nebraska. Keep Idaho joint. I hope someone can help me out. This will be my 2nd tax year in US and I thought I was done with CRA but I guess I made 4000 in EI in 2010. I already filed my 2010 US tax a wk ago. Does that mean I need to ammend it? I just received my T4E. Last year was such a nightmare for me. After dealing w/ 2 accountants that didn't know anything and thank god for visa journey, I was able to do it by myself and didn't have to pay anything like the 2 accountants told me. I actually did it perfectly and IRS thought I did it wrong then 2 months after I filed my 2009 taxes, IRS changed their mind and gave us the total money I calculated the first time.lol. So anyways... Back to my orig question... What do I do??? You don't need to file anything in Canada. HRSDC already took the 25% non-resident tax out. You must claim the EI income, but you can take the 25% non-resident tax as a Foreign Tax Credit using Form 1116. this is lame... our tax return is already so low since i worked a bunch of part time jobs and my employer didnt take enough withholding tax. i really hope i dont have to pay IRS.... lets say i dont report my foreign income??? then what happens??? CRA and IRS do talk to each other. If you don't claim your income and the IRS finds out some day, you will get charged the tax you would owe, plus penalties and interest from April 15 2011.	zyggy	Not Telling	Canada	2011-02-15 12:34:00
Canada	The IRS/CRA Income Tax Thread	You are dealing with two separate issues... Issue 1 is can you file as married filing joint with a non-resident alien. The answer is yes, but you must declare your intention to treat your non-resident alien spouse as a resident alien for tax purposes in writing. You won't be able to efile your return. Issue 2 is once you opt to treat your non-resident alien spouse as a resident alien, is she able to take the foreign income tax exclusion. That's where the bonafide presence test comes into play. If you meet that test, then you can use the foriegn income exclusion. Be sure you do your taxes both ways - joint and seperately. While you do get the bonus of the higher exclusions, they way they calculate the tax is as follows - Tax you would owe with both your incomes minus tax owed on her income alone. If you jump a tax bracket, your tax will be more than if they figured it on yours alone. (i.e. calculate the tax after the foreign income is excluded) Zyg Tax question for 2010: Me US Citizen. Wife Canadian. Married August 2010. I-130 applied for and pending. Wife lived and worked in Canada for Canadian company/ employer the whole of 2010. I am filing our US taxes as "Married filing jointly" and claiming wife as exemption. Filling out Form W-7 for her ITIN. Trying to apply for foreign earned income exclusion. After reading the instructions for 2555EZ again, I find the bonafide residence test kinda confusing....! She lived in Canada continuosly since 2002, Canadian citizen, Tax home country = Canada all these years, Employer = Canadian. Continues to be a bonafide residence of Canada in 2010....! Is the physical presence test (330 days in 2010) necessary too to qualify as a bonafide resident for US tax purposes for 2010? She visited me in the US a few times in 2010 - making her days in Canada in 2010 = 310 days total. Can we still apply for foreign earned income exclusion??? Thank you.	zyggy	Not Telling	Canada	2011-02-11 09:06:00
Canada	The IRS/CRA Income Tax Thread	QUOTE (AyaJulia @ Apr 15 2009, 12:06 PM) <{POST_SNAPBACK}> Hi... I'm a US Citizen. Last year since my husband lived with me in the US, I filed jointly, got him a Taxpayer ID number, the whole shebang... part of getting him that number means of course all of his income has to get reported, something I'm not willing to skimp on since we want to live in the US again some time.... We've moved to Canada, so stupid me waiting until the last minute... I'm sitting here surrounded by all of his T4s staring at a form 1116 crying 'cuz I'm so frustrated. I thought with all the relationship between our two countries, someone would have easy instructions posted somewhere... Add line 16, 18, and 22 from your T4, put it into line 2 on your 1116.... >.< I can't find anything like that though, so I'll just ask this. My husband has CPP deductions, EI deductions, and of course Income Tax deductions listed on his T4s. Which of these do I put in to the 1116 as "expenses definitely related to the foreign income?" Can I use it all? Is any of it not "expenses definitely related to the foreign income?" I can't find this information online and we can't afford a tax service, meanwhile here I am stuck on line 2. We're just a young couple with no property tax, no interest income, nothing but about $18k USD worth of income, 100% of it earned in Canada. No kids. Our situation is about as basic as it gets. Thank you for any help you can offer. Edit: Augh, now I see line 2 isn't related to deductions at all. I'm so lost. My question still stands, I just need to keep digging to find out where to put it. THe 1116 is not the proper form for you. THe proper form is the 2555. Zyg	zyggy	Not Telling	Canada	2009-04-16 12:39:00
Canada	The IRS/CRA Income Tax Thread	QUOTE (Frenchy @ Apr 6 2009, 03:43 PM) <{POST_SNAPBACK}> QUOTE (zyggy @ Apr 6 2009, 03:52 PM) <{POST_SNAPBACK}> QUOTE QUOTE (S & J @ Apr 5 2009, 07:42 PM) <{POST_SNAPBACK}> Thanks for your reply! 1) They have declared me as a deemed non-resident. The only property I own or owned was RRSPs and bank accounts, I've never owned a house. Do you think I should re-file the NR-73? Don't refile, they got it right. Your departure return would have been your return for 2007 with the date of departure written in. I filled out an NR-73 also with no problems, but then mine was simple like yours, all I had was RRSPs and bank accounts. I am keeping my bank accounts open for when I visit. Especially now with the exchange rate, I am hoping it will improve. Ummm no.. don't file anything. You can keep your stuff there no problem. Make sure you tell your custodians there about your non-resident status. If you have withdrawls, they will take care of the non-resident tax. You do no need to file anything with CRA again. Ziggy: where have you been all my life? LOL You know I've warned both my banks (RRSP and Mutual Funds) I'd left the country and had NO reaction from them. When you say I do not need to file anything with CRA again, does that mean for income tax also? They sent me a packet and an accountant talked about final tax or departure tax? Thanks for being there for all of us! If you filed a leaving Canada return with the International Tax Services Office when you left Canada in 2007, you need to file nothing more. Nothing for income tax or RRSP. THey will take the 25% non-resident tax and you need to file nothing as long as they do that.	zyggy	Not Telling	Canada	2009-04-06 19:20:00
Canada	The IRS/CRA Income Tax Thread	QUOTE QUOTE (S & J @ Apr 5 2009, 07:42 PM) <{POST_SNAPBACK}> Thanks for your reply! 1) They have declared me as a deemed non-resident. The only property I own or owned was RRSPs and bank accounts, I've never owned a house. Do you think I should re-file the NR-73? Don't refile, they got it right. Your departure return would have been your return for 2007 with the date of departure written in. I filled out an NR-73 also with no problems, but then mine was simple like yours, all I had was RRSPs and bank accounts. I am keeping my bank accounts open for when I visit. Especially now with the exchange rate, I am hoping it will improve. Ummm no.. don't file anything. You can keep your stuff there no problem. Make sure you tell your custodians there about your non-resident status. If you have withdrawls, they will take care of the non-resident tax. You do no need to file anything with CRA again.	zyggy	Not Telling	Canada	2009-04-06 15:52:00
Canada	The IRS/CRA Income Tax Thread	QUOTE (Frenchy @ Apr 5 2009, 08:14 AM) <{POST_SNAPBACK}> In 2007 I filed as a deemed non-resident (after filing the NR73), I don't think I paid non-resident taxes. 1. How can I make my "final" tax declaration in Canada? I've searched for "departure tax" return on the CRA site but found nothing. 2. I was told to file the T1161 but my total property value was below $25,000 so I don't think I should have to file this, or do I? 3. Also, should I immediately close all Canadian bank accounts such as mutual funds and checking (other than my RRSP)? 4. Can I do a direct transfer from my Canadian account to my US account? Thanks! I am really confused... Since you're a deemed resident of Canada, I don't believe you left Canada yet until the date you sold your property. I suggest you call the International Tax Services office to confirm this. They are very helpful with these sort of issues. Based on the assumption, I submit the following: 1) You're going to need to file a new NR-73 showing that you no longer hold property in Canada to be reclassified as a non-resident of Canada. I would also file a leaving Canada return with the date you sold your house as the date that you "left" Canada. The capital gain on your house would be included in the Leaving Canada return. 2) This form is filed for any of the property listed that you own as of the date that you "left" Canada. If you have any securities etc as listed on the form, you must pay capital gains based on the values of those securities on the date you left Canada. 3) That's up to you. Others have kept those accounts open with no adverse effects. However, since you're a deemed resident and need to apply to get that designation removed, this may be harder for you. Just make sure you notify those institutions of your non-residency. Your example is one of the reasons why I recommend people to NOT send a NR-73 to CRA unless they ask you to. 4) You sure can. There should be no issues. IF the amoutn is larger than $10,000, your bank will report it to the Treasury Department for money laundering monitoring. YOur money is your money and it will not be taxed if you transfer it.	zyggy	Not Telling	Canada	2009-04-05 17:15:00