ForumTitleContentMemberSexCountryDate/Time
CanadaEver see a fatality from an accident?
I was working at a prison building a new cell block, We were on one side of the fence, but on the prisoner side of the fence, I saw a guy take a shank and put it in another guys carotid artery. Blood everywhere. About 40 feet away or so.

The guard later said it was over a radio that the guy who died alegedly stole. The guy who killed him was sent to a solitary max prison.

zyggyNot TellingCanada2009-10-12 18:12:00
Canadawanna go home!!!
Agreed... While you're applying for your PR to Canada, your husband should apply for US Citizenship if he wishes to. If not, he will be abandoning his PR status when you decide to reside in Canada.


zyggyNot TellingCanada2009-10-19 16:04:00
CanadaFor tax purposes
QUOTE (Ravenesque @ Dec 7 2009, 02:38 PM) <{POST_SNAPBACK}>
Geez, hubby and I have been married since 2007 and my hubby the USC has been filing as a single person all this time. Are we leaving money on the table or should hubby go back and refile his tax returns from 2007 onwards?



Your husband should not have filed as single. He has left a significant amount of money on the table. You will need to get a TIN from the IRS for him to file. He can file an amended return for 2007 and 2008.

QUOTE (SunDrop @ Dec 7 2009, 02:50 PM) <{POST_SNAPBACK}>
If I remember correctly, it's no more than 3 years retrospectively for you, but the IRS can claim a lifetime's worth of underpayments, go figure.

A friend of mine recently discovered that when their now 10 year old was born, his deductions were amended but instead of adding another dependent, it was logged as his being dependentless and single!! They can only claim back 3 years' worth of unclaimed deductions, but it still amounted to just over $7,000... well worth it!


The IRS can only claim a lifetime of underpayments if the taxpayer engaged in fraud. If that was not the case, then the 3 years statute of limitations applies.
zyggyNot TellingCanada2009-12-10 11:30:00
CanadaWork in US for Canadian company
I would agree that a transfer to the US branch is the better way to go.
zyggyNot TellingCanada2010-02-19 22:16:00
CanadaTriple (not Dual) Citizenship?

Read: potential war fighters and taxpayers. ;)


More the taxpayer than the war fighter. :)
zyggyNot TellingCanada2010-02-27 17:29:00
CanadaTriple (not Dual) Citizenship?
It esentially boils down to this. Each sovereign country has the right to determine who is their citizen and who is not, how citizenship is gained or lost.

If you are in the US and you are a US citizen, the US only recognizes you as a US Citizen. The same applies in most other countries.

So the true key is does the other country treat the naturalization of a person in another country as a de facto renunciation of citizenship. More and more, it appears that this is not the case. Most countries, including the US, want to keep you as their citizen for various reasons.
zyggyNot TellingCanada2010-02-27 11:25:00
CanadaAuto Insurance in the U.S.

usaa has recently changed their membership requirements to allow anyone who served in the past with an honorable discharge can now join.
children of former military members can join too.



Not quite. Children can't join until the parent with the military affiliation joins. So for instance, if your deceased parent wasn't a member of USAA when they were alive, you are not eligible to join.
zyggyNot TellingCanada2010-02-19 22:35:00
CanadaAuto Insurance in the U.S.

A wealth of information there, Texanadian. Thanks!


I was looking at USAA, but it looks like they require an SSN. I'm going to want to get all of my car issues straightened around in the first few days that I'm down there, which will be before I get my SSN. Looks like I'll still be shopping around... Not sure if Geico is my best bet or not. I wonder if there are any that will accept one's B.C. driving record as proof of safe driving? Hmmm...


USAA is only available to military and their families. Don't know if your eligible, but they are the greatest insurance company on the planet and get my highest endorsement. Their bank and finalcial products rocks as well.

Be "very" careful about GEICO. I've had several insurance adjuster and agent friends of mine tell me their policies have tons of holes in them that are not to your benefit. They are the cheapest around, but remember the old adage that you get what you pay for. You buy insurance to be covered when you have a loss. Just be sure to really read the policy before you buy.

Edited by zyggy, 19 February 2010 - 10:30 PM.

zyggyNot TellingCanada2010-02-19 22:26:00
CanadaAuto Insurance in the U.S.

My wife has USAA and she loves it. I'll be getting on that policy toot sweet. I don't think Arizona taxes your vehicle annually but I'll be sure to ask her tonight.

There's a lot to deal with and know when it comes to the all of us moving there so it's great to be able to throw issues and quesitons around and get lots of help.

VJ has truly been a superb resource.



AZ has a personal property tax as well. And it's very stiff. For two cars I pay about $800 per year.
zyggyNot TellingCanada2010-02-19 22:22:00
CanadaEI Report card question

I'm in the same position as Galateia... who knew I could get EI from Canada when in the US!! Wow!! Could someone more knowledgeable outline how this works for us... or point us in the right direction??

Thanks!

Laura



See the pinned EI thread at the top of the forum page...
zyggyNot TellingCanada2007-02-07 11:28:00
CanadaEI Report card question

One is work authorized with a K1, theat's why one can get a SSN card with a K1, because work authorization is incident to K1 status. However, an employer cannot hire you without evidence of that Employment Authorization through an EAD Card.

EI accepts the fact that K1 is Employment Authorized incident to status in terms of paying you EI.. but only for the 90 days. They will stop your payments for the period between the 90 days and the day you send them evidence of your renewed Employment Authorization by faxing them a copy of your EAD.


Correct me if I'm wrong in my understanding of this: I am eligible for EI because of my K1 status regardless of whether or not I received the EAD stamp?

- If so, do I answer "Yes" to Question 4 on the report card "Were you ready, willing and capable of working each day?" (Because I am work-authorized due to my being a K1 but just don't have the EAD stamp or card)

- I applied in mid-November and my I-94 expires at the end of January... so I am entitled to payments spanning this period?

Yes, you put "yes" under willing, able to work. . .

ANd Yes, you should be entitled to the payments this whole span as long as they approve you in the 1st place.


Thanks for the confirmation.

So when my I-94 expires and the report cards keep coming, I should start answering "No" to that question (at which point I will stop receiving benefits) and tell them that I am awaiting my EAD. And as soon as they receive a copy of my EAD, they'll start sending out my benefits again assuming I haven't found a job. If this is how it goes, then that's totally awesome... I had it in my mind all this time that I had to wait for my EAD before I could start getting any benefits at all!



You don't have to check no.. because they will automatically stop your benefits 90 days after you arrived in the US until you fax them a copy of your EAD... then it will restart again... of course if you haven't found a job..

ANd you can get a refund of the 25% non-resident tax that you paid by filing a Section 217 return. You can di this one of two ways

1) If you only Canada source income for the year was EI, then you can file a Non-resident T1 with Section 217 written on the top. As long as your worldwide income is not higher than the 25% tax bracket, you will get a refund...

2) If you were resident in Canada part of the year, and out of Canada part of the year and earned EI, you can file a Partial 217 return...

There are guides on the CRA website on how to file a Section 217 return and they are pretty detailed and relatively easy to follow...
zyggyNot TellingCanada2007-01-25 08:44:00
CanadaEI Report card question

I just applied for EI online a week or so ago. I'm about to send in my ROE... do they need the original or can I send a copy?



You must send them the original... a copy will not do...
zyggyNot TellingCanada2006-11-29 15:16:00
CanadaEI Report card question

I just sent mine back regular, el cheapo mail with a normal stamp. Never had a problem.



Me too.. just sent it back with the regular stamp... never had a problem.

One is work authorized with a K1, theat's why one can get a SSN card with a K1, because work authorization is incident to K1 status. However, an employer cannot hire you without evidence of that Employment Authorization through an EAD Card.

EI accepts the fact that K1 is Employment Authorized incident to status in terms of paying you EI.. but only for the 90 days. They will stop your payments for the period between the 90 days and the day you send them evidence of your renewed Employment Authorization by faxing them a copy of your EAD.
zyggyNot TellingCanada2006-11-29 09:07:00
CanadaAvoiding RFE - Proof of meeting
ATM Receipt, Credit Card Receipt, Credit Card Statement showing charges in Canada, Bank Statement showing withdrawls in Canada, Airline Ticket.

Pictures are worthless. Emails show validity of relationship, they do not show you being in the physucal country.
zyggyNot TellingCanada2011-02-15 12:49:00
CanadaAOS/EAD

Hi all - so I'm getting all together and was reading in the 'step-by-step guide on how to file for adjustment of status for K1 Visa holders' which basically says that i'm not required ot have another medical exam if i file the I-485 within a year of my exam, which I am. Then it says if my DS-3025 is marked incomplete I have to file the I-693...

So couple questions - at what point would I have received a DS-3025? Where would it be? Don't remember seeing/receiving this, and can't seem to find it.

I'm assuming my medical exam was fine as I was approved so should I just go ahead and send in my package without this I-693?

Appreciate your thoughts, thanks, B



The DS-3025 is the Embassy Medical. They would mark it incomplete if say for instance, you were pregnant and they couldn't take an x-ray or couldn't give you an immunization. If that was the case, you would have to get another medical in the US to complete all the requirements. The I-693 is the USCIS medical form.
zyggyNot TellingCanada2011-02-16 14:59:00
CanadaFiling Income Tax in Canada
Canada takes a 25% non-resident tax, you do not have to file.

However, if your total worldwide income would put you in a tax bracket less than the 25%, you can get a refund of the difference by filing a Section 217 return.
zyggyNot TellingCanada2011-02-15 12:52:00
CanadaCanadian EI and the IRS
You take the 25% non-resident tax as a foreign tax credit using Form 1116.
zyggyNot TellingCanada2011-03-07 09:52:00
CanadaList of all visits to the US on DS-160 form
We put "Frequent Visits over the last xx years due to proximity to border". It worked just fine. They understand Canadians take a lot of trips to the US.
zyggyNot TellingCanada2011-03-14 07:30:00
CanadaUK citizen moving to Canada with Canadian fiancee
Canada doen't have a fiancee visa. You would have to marry your finacee and you have one of two choices.

1) Get married in Canada and apply for a Family Class visa in Canada
2) Get married anywhere and apply to get your Family Class Immigrant visa in the UK.

Generally, processing in Canada is quicker and you get to stay while it is being processed. You also get a unrestricted Work Permit after about 3-4 months or so.
zyggyNot TellingCanada2011-03-15 08:37:00
CanadaCanadian husband becoming a US Citizen...need advice/info

Thanks Zyggy!

Just to clarify, I need to put a 0 for the number of days he's been outside of the US (he hasn't left here since we moved almost 3 years ago) instead of counting up the days (during the 5 years) that we were in Canada before we moved?



Guess I'll have to watch out for you then! :lol:



Yes. That's exactly it.
zyggyNot TellingCanada2011-03-15 08:39:00
CanadaCanadian husband becoming a US Citizen...need advice/info

OK, so I was filling out the N-400 and have a couple of questions...

1-On Part 2B...I checked that one even though he won't have been in the US for 3 years until June. I figured since they let you file 90 days before your 3 years it was ok...or do I need to change that?

2-On Part 7A, it asks how many days have you been outside of the US in the past 5 years. Since we've only been here for just under 3 years, do I just put the total that we were in Canada before we moved?

3-On 7B, it asks how many trips you've made outside of the US that have lasted longer than 24 hours in the last 5 years. He hasn't traveled outside of the US but during those 5 years, he lived in Canada for part of it. Does this apply to us at all?

4-On 9B...I am typing it in online and then will print it. I can't fit the entire names or addresses in. Do I just fit what I can or do I need to do something differently here?

5-Also on 9B, it asks where our children were born. They were born in Canada but we got their Consular Report of Birth Abroad as well. There is no place to indicate that they are US citizens too. Is that OK or am I missing something?

6-It asks about being charged with a crime. We went through this when we applied for his immigration and it had me so worried. Almost 20 years ago, he threatened someone and was arrested for it. He ended up only getting probation but we had to list it on the paperwork and were concerned about rather they would find it a CMT or not. They didn't and it was no big deal. But now that I see the same questions again, I'm wondering if it is more strict with becoming a citizen and if we'll have issues with it. Does anyone know?

Thanks! :)


1) it's fine.
2) yes, you would put it as of the last 3 years. you only have to document the tine since he got is PR status.
3) see above
4) I would leave it blank and insert by hand if it cuts things off
5) it's fine.. it asks where they were born.
6) No difference.. if it wasn't a problem when he got his PR status, it wouldn't be a problem now. The standards for CIMT are the same.
zyggyNot TellingCanada2011-03-14 13:14:00
CanadaUS Citizen filing taxes for first time with Canadian spouse

Thank you kindly. I will look it over tonight. :thumbs:


You are below the filing threshold, you don't have to file. Your spouse is not a USC or a Permanent Resident so he is not required to file. You have the option to file as joint with his income or seperately and file on your own. In this case, I would not opt to file joint with your husband and file seperately. As your income is below the filing threshold, you would not be required to file a return on your own.

Edited by zyggy, 17 March 2011 - 08:46 AM.

zyggyNot TellingCanada2011-03-17 08:46:00
CanadaH&R Block did our US taxes

We went to H&R Block to get our taxes done. The first office we went to no one had a clue how to deal with foreign income, so I called a couple of other offices and found that said they had someone who was experienced in doing foreign income. I am still unsure if they did it correctly tho. Here is my story, and if anyone can comment on whether is sounds like it is done correctly or if we should find someone else to look at it, it would be very much appreciated.

I POE'd in April 2010. In Jan 2010 I recieved a severance package from my former employer, so this will be the only 'employment' income I have. I cashed in some of my RRSP's in 2010 as well. This is what I am most concerned about as they entered this income as a capital gain (used the market value minus the book value) and not the amount I recieved when I cashed it in. I also collected maternity benefits (same as EI), this was entered as other income. Does this seem to be correct?

With my husband just losing his job and a new baby I want to be sure that things are done correctly...especially if it means possibly getting a bigger refund.

TIA


As an RRSP is tax deferred shelter, accoridng to the US-Canada Tax Treaty, income from it is pension or retirement income, i.e. it is considered the same as cashing out a 401k (without having to worry about the early distribution penalty)... So in this case it was done incorrectly. If he had filled out Form 8891, it would have directed him to report the income correctly. You would treat the amount as pension income and it would be taxed as ordinary income. However, you would take the 25% non-resident tax as a foreign tax credit. Your maternity benefits are classified as unemployment insurance.. i.e. ordinary income as well. Entering it as other income is fine as it is reported.

In this case, doing it correctly won't result in a bigger refund. Taxes on Capital Gains are lower than taxes on ordinary income.

Edited by zyggy, 21 March 2011 - 08:12 AM.

zyggyNot TellingCanada2011-03-21 08:10:00
CanadaWhich one?

True, and if anyone is reading this, please note that the small one is completely useless with the consulate, and that if your birth was registered in French, you will not be able to have one issued to you in English. You'll need to have it translated.


Translation into French is not required if it is presented to the Consulate. Only required if sending documents to USCIS.
zyggyNot TellingCanada2011-03-29 11:07:00
CanadaPOE by bus
You're going in with a CR-1... returning to your home is not expected. So no, it wouldn't be a problem.
zyggyNot TellingCanada2011-03-28 08:08:00
CanadaCanadian filing taxes for the first time in the US!

It includes it... it can go over it...



Also, the terms of the U.S. Canada Tax Treaty overcome those directions.

The terms are as follows:

1. For the purposes of this Convention, the term "resident of a Contracting State" means any person
who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of
management, place of incorporation or any other criterion of a similar nature, but in the case of an estate
or trust, only to the extent that income derived by such estate or trust is liable to tax in that State, either
in its hands or in the hands of its beneficiaries.

1. Subject to the provisions of Articles XVIII (Pensions and Annuities) and XIX (Government
Service), salaries, wages and other similar remuneration derived by a resident of a Contracting State in
respect of an employment shall be taxable only in that State unless the employment is exercised in the
other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom
may be taxed in that other State.

To sum up, income that was earned while a resident of Canada is only taxable in Canada and therefore must be excluded from taxable income in the other state.
zyggyNot TellingCanada2011-04-12 08:42:00
CanadaCanadian filing taxes for the first time in the US!

Sorry, I think you're wrong. Bona fide residence test IS BASED ON A CALENDAR YEAR. The instructions clearly say: "bona fide resident of a foreign country, or countries, for an uninterrupted period that includes an entire tax year (January 1–December 31)"



It includes it... it can go over it...
zyggyNot TellingCanada2011-04-12 07:49:00
CanadaCanadian filing taxes for the first time in the US!

Hmmm... That's interesting, Mr. Tax Man. I presume, the OP does not qualify under bona fide residence test, right? So, are you saying that the 12 months for physical presence test can be selected arbitrarily? Please correct me if I am wrong.



She qualifies under the bonafide residence test for the 2555. Canada was her bonafide residence when she lived in Canada. The bonafide residence and substantial presence tests for the 2555 is based on 12 consecutive months. It is not based on a calendar year. So if you enter the US in January 2011, the time period is January 2010 through January 2011. If she meets the tests for that period one can exclude the income up to January 2011.

Edited by zyggy, 11 April 2011 - 07:57 AM.

zyggyNot TellingCanada2011-04-11 07:54:00
CanadaCanadian filing taxes for the first time in the US!

Under the described circumstances the OP IS NOT ABLE to use 2555. The only options are either tax deduction or tax credit for Canadian taxes accrued/paid.

By the way, 1116 is used for foreign tax CREDIT, not for the DEDUCTION.



Actually she can. You can use the 2555 to exclude the income you earned in Canada, since she would pass both the substantial presence test and the tax home test for the time she was resident in Canada. Canada was her tax home before she entered the US and she has to live in the foreign country for 183 days of the previous 12 months. It is not based on a calendar year basis. Any Foreign income earned after you entered the US to become a permanent resident is subject to US tax. Any foreign tax on that income would be taken as a foreign tax credit using Form 1116.

You need to file a form 8891 for the RRSP. It's an infomation only form.

Edited by zyggy, 08 April 2011 - 08:35 AM.

zyggyNot TellingCanada2011-04-08 08:33:00
Canada2010 Tax thread - For Canada and the U.S.

Ziggy,

My husband left Canada March of 2010. Not sure that it matters, but he got his first job in the US in April. Thanks for the help!



The EI that he earned in Canada would be excluded using Form 2555

The EI that was earned in the US would have to be reported and the tax you paid on it would be taken as a foreign tax credit.

You can get the T4E from the HRSDC website.

Edited by zyggy, 08 April 2011 - 08:28 AM.

zyggyNot TellingCanada2011-04-08 08:26:00
Canada2010 Tax thread - For Canada and the U.S.

I have posted in here before but still have some questions.
I am the US citizen but I am living with my husband in Canada with him. (Have been for two years today)
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!


1. No, if he is not a US Permanent resident or Citizen, he has no obligation to file a US Income Tax return.
2. You send it to Austin, TX, or you can file electronically. If your husband does not have an ITIN, you have to file by mail.
3. A while...
4. Use your Canadian address
5. YOu would file a normal 1040. But would exclude your foreign income using Form 2555. YOu would also have to file an W-7 to get an ITIN. YOu have to go to an acceptance agent to have them verify his documents. A list of acceptance agents is on the IRS website.
6. Not sure what you mean..
7. If your income is 0... you have no obligation to file as you have no worldwide income.
8. See question 1 and 7
9. See question 1 and 7

Help! I'm so confused! I'm reading the US Tax guide for Aliens but I don't see anything about EI payments in there. My husband was unemployed and on EI his entire time in Canada in 2010 (until March) and for like a month in the US. I'm not sure if he received a T4E or not. If he received that form, do I need to report his EI income on the unemployment line and then file the Tax Credit form 1116 for that money? If he didn't receive the form, should I just fill out my forms as usual and not worry about his EI payments?

Thanks for any advice you can give.



When did your husband leave Canada. That is an important question. Once you answer that, we can answer the rest.
zyggyNot TellingCanada2011-04-07 10:35:00
Canada2010 Tax thread - For Canada and the U.S.

Thanks zygg - for input...but not sure i comprehend 100%! I lived in Canada with my 18 yr old daughter until Dec of 2010...She graduated from h/s in june...so when i do my exit return in Canada I am claiming her there. (have to find out how much i can claim her for...at any rate.) It looks like my husband will file married/jointly...Do you mean to say that he can also claim my daughter? Sorry if this was something simple that i miscontrued.!


If you file joint... yes. You will have to get a ITIN for her though.

Edited by zyggy, 14 March 2011 - 01:17 PM.

zyggyNot TellingCanada2011-03-14 13:16:00
Canada2010 Tax thread - For Canada and the U.S.

Thanks for response...much appreciated. I entered in dec of 2010 and we married dec of 2010. I am caliming my daughter in canada - however she remained in canada...he is not claiming her. We are having h n r block do his taxes....will they do it both ways to find the best option? Or will having my foreign income exempt be enough for him to file here married/jointly? Gawd - i wish this part was over...I'd rather fill out another k1 package!
tx


Why aren't you claiming her? You should if she qualifies as a dependent according to US tax rules. Whether she lives with you or not has nothing to do with it, it has to do whether or not you provide more than half her support. And it's BOTH of your taxes... not just his, he would at least have to declare you as his spouse to get the better tax treatment. The guys at HRB usually have no clue how to do cross border taxes, especially a special subset like a foreign spouse, you usually have to hold their hand through it.

Seperately is probably not the better deal. The better deal is almost always joint, especially if you have a lower income.

Edited by zyggy, 14 March 2011 - 07:28 AM.

zyggyNot TellingCanada2011-03-14 07:25:00
Canada2010 Tax thread - For Canada and the U.S.

See above - hmm that doesn't look like the right thing either nor the 1116. Oh, drats this is complicated and what happens in 2 years when I can get my superannuation out of BC?


Help!


You would use the 1116 for the 25% non-resident tax. Same thing for when you take your pension out of BC... but personally I would leave it alone until I had to pull it.
zyggyNot TellingCanada2011-03-14 07:22:00
Canada2010 Tax thread - For Canada and the U.S.

I'm pretty sure Canada counts your leave date as the physical date you left Canada.

For the US, they base your residency a bit differently and they explain it on their site.

I'm confused about the 2555 now too.



Use the Form 2555 is not dependent on the calendar you, but on a continuous 365 day period. So if you left Canada in March 2010 and you lived in Canada from March 2009 to March 2010, you can exclude the income earned in Canada using Form 2555 up to March 2010. Any foreign income earned after that period cannot be excluded.

You do not need to submit any evidence of the income with the Form 2555 or any other forieng income. You are more on the honor system. But if you get audited, the IRS can find out about the sources of your worldwide income due to their relationship with other taxing authorities and the fact that they can place pressure on foreign banks to divulge foreign account information due to the US being a world banking center.

Edited by zyggy, 07 March 2011 - 10:21 AM.

zyggyNot TellingCanada2011-03-07 10:19:00
Canada2010 Tax thread - For Canada and the U.S.

My wife's interview is on 03/11/10 by the time she get her passport back and then get her ssn it might take 2months, i want to wait until she come's here to file my taxes but i think it going to be impossible before the tax deadline.
Another question i had is can i file joint tax return if she does not meet the tax deadline or do i jus go ahead and file married but single tax return im very confused here, can anyone shed some light!!! :huh:


THis would be a good use of filing an extension.
zyggyNot TellingCanada2011-03-07 10:09:00
Canada2010 Tax thread - For Canada and the U.S.

I'm so worried though, like apparently they want all of my husbands tax information and what not. I'm so worried I'll owe the government like a thousand or something. Am I just being paranoid, or am I in trouble? ):



you're being paranoid. I assume by what you said above that you're a Canadian still living in Canada. It's no big deal.
zyggyNot TellingCanada2010-02-24 20:40:00
Canada2010 Tax thread - For Canada and the U.S.

1) Exactly
2) Include the amount prior to your leaving Canada date with the amount on Line 7
3) Report the pension income after your leaving Canada date on Line 16a with the taxable amount the same as 16b. Take the tax Canada takes out on it as a foreign tax credit on Form 1116.



I have read the US Canada tax treaty, and what I wrote above in #2 is incorrect. You would report the full amount of your pension for the entirety of 2009 on Line 16 and take a foreign tax credit on the entire amount.
zyggyNot TellingCanada2010-02-22 22:51:00
Canada2010 Tax thread - For Canada and the U.S.

Ok, so I read it. I apologize for being lazy! I don't do my own taxes, I never have and never will, but my husband insists in doing them himself, which means I need to trust him to file for us both. This question was courtesy of him and I assumed he had read the thread when he asked me to post in it.

Anyways... This is what I've gathered. Please correct me If I'm wrong.



So, I should put my foreign Canadian income on line 7 as if it is normal earned income, then fill out form F2555 to exclude it. I'm eligible for it based on this bellow- since I lived in Canada for the entire period spanning March 2008 and March 2009 correct? I moved out of Canada in June of 2009.

And then for US only income on line 22 it would be $0 since I didn't make any money in the US.






I also have a small pension income from January to July of 2009. Would that be included in the income I'm claiming on line 7? I believe since EI income is included (as someone stated earlier) a pension income would as well. Should I fill out form 1116 in conjunction with form 2555? Is that permitted?

Thanks for the help!!


1) Exactly
2) Include the amount prior to your leaving Canada date with the amount on Line 7
3) Report the pension income after your leaving Canada date on Line 16a with the taxable amount the same as 16b. Take the tax Canada takes out on it as a foreign tax credit on Form 1116.
zyggyNot TellingCanada2010-02-22 22:43:00
Canada2010 Tax thread - For Canada and the U.S.

Here's a simple one...

Okay... let's say you earned $10,000 in Canada based income and Canada took 25% of that for the non-resident tax meaning you would pay $2,500 in tax to Canada your proceeds would be $7,500

Let's say for argument that you also earned $10,000 in the US in addition to the $10,000 Canada source income of $20,000 total and the Canada tax bracket for that $20,000 is 10%... so if you lived in Canada, you would only pay $2,000 in tax if that entire income was earned in Canada.

What a Section 217 return does is it allows you to prove that you only need to pay the 10% and not the 25%. In the above example, CRA would send you a refund for $500.

The return is due by June 30



On the flip side, let's say you earned $10,000 in Canada source income and Canada took the $2,500 in non-resident tax and you earned $50,000 in the US. In this case, if you filled out a T1 for your worldwide income, you would be in a bracket above the 25% non-resident tax rate. So it is better to let them keep their 25% and walk away. However, be sure to report the $10,000 Canada source income on the 1040 and take the $2,500 as a foreign tax credit using Form 1116.
zyggyNot TellingCanada2010-02-22 22:02:00