ForumTitleContentMemberSexCountryDate/Time
CanadaNR 73
QUOTE (stiggy @ Jan 7 2009, 02:09 PM) <{POST_SNAPBACK}>
Ok, sorry to jump in here, but if you are recieving CTB and UCCB, isnt it a good idea to mail in the NR73??
Or continue to keep having the payments come for the rest of the year, and stash it in savings until they ask for it back?

I was researching this yesterday for after I enter with a K1... at what point I lose the CT amounts and the UCCB, and from what I read, you lose it the day you receive a greencard, since you are not a resident of the US yet



Be careful how you read things. Actually you lose it when you are no longer a resident of Canada. That is not the same as the date you get a Greencard. The date you enter the US on the K-1 is generally considered to the date you ceased to be a resident of Canada.

Edited by zyggy, 08 January 2009 - 01:14 PM.

zyggyNot TellingCanada2009-01-08 13:13:00
CanadaNR 73
QUOTE (stiggy @ Jan 7 2009, 03:36 PM) <{POST_SNAPBACK}>
QUOTE (trailmix @ Jan 7 2009, 05:32 PM) <{POST_SNAPBACK}>
QUOTE (stiggy @ Jan 7 2009, 04:09 PM) <{POST_SNAPBACK}>
Ok, sorry to jump in here, but if you are recieving CTB and UCCB, isnt it a good idea to mail in the NR73??
Or continue to keep having the payments come for the rest of the year, and stash it in savings until they ask for it back?

I was researching this yesterday for after I enter with a K1... at what point I lose the CT amounts and the UCCB, and from what I read, you lose it the day you receive a greencard, since you are not a resident of the US yet


Those payments are based on your tax return.

If you state on your tax return that you ceased to be a resident on such and such a date you won't receive them following that.

As for current, say you have a GST cheque coming to you in October but you left the country in September, you need to call them in September and say - I am leaving the country on September 15th, don't send me any more money.




I don't think there is any Canadian tax law that says in black and white that if you meet this one criteria (for instance getting your green card) you are no longer a resident of Canada.

Residential Ties Elsewhere

The Courts have indicated that an individual must be resident somewhere, but they can also have more than one residence at the same time. Therefore, the fact that the individual is considered a resident of some other country does not preclude a finding that he or she is still resident in Canada.

From this article - which I think is very well written.


Canadian Tax Considerations for Canadians Moving Permanently to the United States

Determination of Residence for Canadian Income Tax Purposes

The term resident is not defined in the Canadian Income Tax Act so we need to refer to case law. Canadian Tax Courts (the "Courts") have held that an individual is resident in Canada for tax purposes if Canada is the place where he, in his settled routine of his life regularly, normally or customarily lives. Canada Customs and Revenue Agency ("CCRA"), formerly Revenue Canada, has indicated that the determination of an individual's residence status is a question of fact and is based on a number of factors that have been set out by the Courts. These factors are discussed below:

Permanence and Purpose

CCRA considers the degree of permanence. For example, if the individual has been absent for less than 2 years, it is presumed that he or she has retained Canadian residence unless all ties to Canada have been severed. If the emigrating individual's return to Canada is foreseen before his or her departure, CCRA will conclude that the individual never ceased to be a resident of Canada.

Residential Ties to Canada

Residential ties to Canada may include the following:
A home which may be kept vacant or leased to a non-arm's length person or for a short term period;

Spouse and dependants who may stay behind unless separated;

Personal property such as furniture, clothing, automobile, driver's license, bank accounts, credit cards, debit cards, etc.;

Provincial medical coverage, cottage, professional memberships, child care benefit payments and GST payments; and

Social memberships in clubs, charities & volunteer organizations.

Residential Ties Elsewhere

The Courts have indicated that an individual must be resident somewhere, but they can also have more than one residence at the same time. Therefore, the fact that the individual is considered a resident of some other country does not preclude a finding that he or she is still resident in Canada.

Regularity and Length of Visits to Canada

An individual can make the occasional return visits for business or personal reasons but if visits are on a regular basis then this may indicate that the individual continues to be a resident of Canada.

If the individual leaves Canada for two years or less, CCRA's administrative policy is that the individual is presumed to have retained their Canadian residence during their absence, unless he or she can establish that the return to Canada was unforeseen at the time of departure. Any evidence of intent to return to Canada within two years of departure, will cause CCRA to conclude that the individual was a continuing resident of Canada, for tax purposes, during the two years that he or she was absent. This two-year rule is only an administrative policy of the CCRA and has no basis in law.

CCRA has centralized the determination of residence in its International Tax Services Office in Ottawa, and has established procedures to allow the determination of non-residence in advance of an emigrant's departure. An emigrant is not required to obtain this prior determination, but it may be advantageous if he or she requires residence status to be clarified prior to departure. Form NR73 should be completed to request a determination of residence status.

Some of the steps that an emigrant should take in order to be considered a non-resident of Canada are:

Close all Canadian bank accounts if possible or inform the banks of the change in residence.

Inform Canadian remitters of income, such as mutual funds and securities brokers, of their non-residence status to ensure that they withhold tax on payments of certain types of income. Canadian Registered Retirement Savings Plan ("RRSP") and Canadian Registered Retirement Income Fund ("RRIF") accounts are included.

Advise social clubs and professional associations of the change in their status from a resident member to a non-resident member or have them discontinue the memberships if they don't allow non-resident members.

Ensure that a residence is not available in Canada for personal use during the period of non-residence by either selling or leasing his or her home.

Cancel provincial health care coverage.

Termination of Canadian Residence

Date of Departure

The date of departure is generally considered to have occurred on the latest of:

The date the individual leaves Canada;

The date the individual's spouse and/or dependants leave Canada; or

The date the individual becomes a resident of a country to which he or she is immigrating.

Dual Residence

An individual can be a dual resident if he or she creates residential ties in the United States but does not sever all ties in Canada. In such a situation an individual could be subject to double taxation. Relief from this situation is provided by the Canada–U.S. Income Tax Convention. This Convention for the most part will provide a determinacy of residence between Canada and the United States that will override domestic tax law. When an individual is considered a resident of both countries by virtue of domestic law, an individual's residence status is determined by considering which country to which the individual has a closer connection. This is determined by considering the following factors in the following order:

Whether the individual maintains a permanent home in the country;

Whether the country is closer in relation to the individual's personal and economic relations;

Whether the country is the individual's habitual abode; and

Whether the individual has citizenship in the country.

Canadian Income Tax Implications of Ceasing to be a Canadian Resident

Reporting Obligations

Canada's taxation system is based on residence. Residents of Canada are subject to taxation on their worldwide income while non-residents are only subject to taxation on certain types of Canadian source income. When an individual ceases to be a resident, the provisions of the Canadian Income Tax Act attempts to tax the individual on all his or her income earned up to the date that residence terminates (date of departure), especially the income that will not be taxable once the individual becomes a non-resident. This tax is referred to as the "departure tax".



Ok, so are you saying that when I get to the U.S with my K1 visa, I call the CRA and let them know I moved out of Canada, and to stop issuing me CTB/UCCB & GST checks? Were going the K1 route, so I wont be putting on my tax return this year that Im moving this upcoming year, since it wont be till early next year anyways. Or do I continue getting CTB until the end of the year that I moved?


Actually you can try to send CRA anything you want to tell them you moved and they won't stop sending the checks. We called and sent our tax center a letter and nothing stopped. You just have to put it in a savings account somewhere and pay it back when they send you the invoice after you file the leaving Canada return. If they have gotten better at it since when we came over on the K-1, well all the better. But don't be surprised if it doesn't stop.

Do not send an NR-73. It will not stop the checks and only has the potential to get you into trouble as I have explained.

Edited by zyggy, 08 January 2009 - 01:11 PM.

zyggyNot TellingCanada2009-01-08 13:09:00
CanadaNR 73
QUOTE (MandE @ Jan 7 2009, 09:44 AM) <{POST_SNAPBACK}>
hmmm... now I'm really confused. When I collected EI, it was based on the fact that I was living in the US on a K1 Visa, like I've seen many other posters on here do. There was nothing secretive about that when I applied for EI... the benefits people were aware I had moved to the states, so I should think they would have taken out more taxes based on that already.

Oh... maybe I just need to call CRA... good times



If you filed EI as a non-resident, then you don't have to worry about taxes. HSDRC is taking out the non-resident tax for you.

I would do what trailmix said, file an amended T1 with the international tax services office with a leaving Canada date of 12/31.

Or you can file a leaving Canada return for 2008 with the International Tax Services Office with a leaving Canada date of January 1 with no income. If you received GST rebates, you will be expected to pay it back for the whole year. Do not pay it back until CRA sends you an invoice.
zyggyNot TellingCanada2009-01-07 15:32:00
CanadaNR 73
QUOTE
Agreed, the first two statements are valid...

But why are you filing an NR73... did CRA request it... if CRA didn't request it, I would not file that form. It could open a whole can of worms that you don't want to open. All you need to file is a Leaving Canada return at the end of 2008. If CRA request an NR73 at that time, then I would do it then.

Hi zyggy,

In my case, I am permanently leaving Canada and have no plans to return as a resident in the near future; the earliest would be our retirement. That is why I am filling out the NR 73.

By a whole can of worms, what do you mean? whistling.gif



My wife and pretty much everyone on here was in the same boat.. the NR-73 is an optional form.. it is not required. Cassie is one of the only people that I know of who have filed that form.. All you have to do is file a leaving Canada reurn at the end of the tax year. Your responses on the NR-73 may lead Canada Revenue to classify you as a deemed resident of Canada even through you may not and once that determination is made, it's very difficult to get them to unmake it... Deemed residents of Canada must pay Canadian taxes on their worldwide income... until CRA decides that you are no longer a deemed resident.

I will say it again in the most strongest of terms.. Do not file that form unless CRA formally asks you to... you wouldn't want to paint yourself into a corner that you could have avoided.. Most cross border tax experts recommend that the NR-73 not be filed unless CRA formally requests it..

Edited by zyggy, 27 June 2008 - 07:31 PM.

zyggyNot TellingCanada2008-06-27 19:23:00
CanadaNR 73
Agreed, the first two statements are valid...

But why are you filing an NR73... did CRA request it... if CRA didn't request it, I would not file that form. It could open a whole can of worms that you don't want to open. All you need to file is a Leaving Canada return at the end of 2008. If CRA request an NR73 at that time, then I would do it then.

Edited by zyggy, 27 June 2008 - 06:35 PM.

zyggyNot TellingCanada2008-06-27 18:34:00
CanadaTaxes
QUOTE (trailmix @ Jan 8 2009, 10:34 AM) <{POST_SNAPBACK}>
A USA citizen who is a perm resident of Canada and working in Canada would have to file USA income taxes, but wouldn't have to pay any taxes to the USA?

No, that is not true. As YuandDan mentioned, you have to file U.S. taxes and you may have to pay taxes to the IRS, it depends on your income - if it is over, roughly, the 80k U.S. mark then yes, you may have to pay U.S. taxes on the amount exceeding this.


After the exclusion is taken out, if you still have foreign income, you can take a foreign tax credit to take care of the rest. This provision is to make highly compensated individuals pay tax if one were to move to a tax haven.
zyggyNot TellingCanada2009-01-08 13:21:00
CanadaTaxes
QUOTE (CitizenUS @ Jan 8 2009, 08:40 AM) <{POST_SNAPBACK}>
I was wondering......

If a Canadian citizen immigrates to the USA and becomes a permanent resident with a green card and has a job in the USA, does the Canadian citizen still pay income taxes to Canada?

Also if a USA citizen immigrates to Canada and becomes a permanent resident and has a job in Canada, does the USA citizen still pay income taxes to the USA?


1) Canadian does not have to pay taxes to CRA or report non-Canadian income once they are no longer a resident of Canada. If no-rsident tax is paid on Canadaian income, then you do not have to report that either.

2) USC must always report their income to the IRS no matter where they live for life. However, there are exclusions and foreign tax credits that take care of any Canadian income, so it's extremely unlikely that you would ever have to pay US income taxes while living and working in Canada. But you do have to report it.

Edited by zyggy, 08 January 2009 - 01:18 PM.

zyggyNot TellingCanada2009-01-08 13:17:00
CanadaTaxes time is coming...
If you filed your leaving Canada return with CRA last year, you do not have to file this year. You are finished with them unless you decide to move back or get some source of Canadian income from a source that does not withhold the 25% nonresident tax from you (rental income is the main one). And we did get a tax package the following year that we filed the leaving Canada return. We immediately placed it into the recycle.

Edited by zyggy, 20 January 2009 - 11:03 AM.

zyggyNot TellingCanada2009-01-20 11:02:00
CanadaFiling Taxes Abroad?
QUOTE (Udella&Wiz @ Jan 20 2009, 06:56 AM) <{POST_SNAPBACK}>
I'll be filing mine for 2008 asap. I just have to remember to get my UI T4's (EI now??? smile.gif ) and I'm away to the races. Thankfully I only have that as Canadian income for 2008 and then of course i'll file my US taxes once I get my W-2 from work here.


Don't know if anyone else had issues with the Canadian Government evaluating whether you are a factual resident or not during the first year - I had a few troubles when I mistakenly said my 'world income' was not taxed' and the Canadian government decided I was a Factual resident for the entire of 2007 (won't be aproblem this year).

It's funny because the US Gov had no problem understanding that my world income that year had already been taxed by Canada already so they waived it when we reported it on my husband's 2007 taxes....but my gawd - the Canadian Gov't gave me a major song and dance for no reason - I lived for 11 months out of 2007 in Canada, had worked and paid taxes as usual and they still couldn't understand it. I've ended up paying about $800 more then I ever have in taxes last year - so bizarre.

My words of wisdom - read the fine print and if you don't understand (or even think you do like I did) call the Tax Centre to get more info.



If you received the EI income while you were resident in the US, you do not include it on your leaving Canada return unless elect to file under Section 217.
zyggyNot TellingCanada2009-01-20 10:21:00
CanadaA Canadian/US baby
QUOTE (trailmix @ Jan 7 2009, 07:54 PM) <{POST_SNAPBACK}>
Hi Ant,

Yes, because you were also born outside Canada, you would have to register their birth before age 28, plus they will have to meet the criteria below. They will not get a Canadian birth certificate (you can only get a birth certificate in a country you were physically born in).

note: these guidelines are only for the 2nd generation born outside of Canada to at least 1 Canadian parent.

How do I retain Canadian citizenship?
You must

Register as a Canadian citizen, and

Make an application to retain citizenship, and

Be under 28 years of age.

Live in Canada for at least one year immediately before filing your application, or

Have a substantial connection with Canada in one of the following ways:

for at least two of the four years immediately before filing your application, you worked for the federal or a provincial government, or
you were a member of the Canadian Forces or the Royal Canadian Mounted Police (RCMP),

or you were a Canadian representative to the United Nations or one of its affiliated agencies,

or you have basic knowledge of English or French to be able to carry on a simple conversation, and your knowledge of Canada's history, geography, government and the rights and responsibilities of citizenship to pass a test,

and

for at least one year after turning 14 years of age, you attended a recognized secondary or post-secondary educational institution in Canada, or
you lived in Canada with a family member.


Actually this does not apply to naturalized citizens. Your baby will be considered the first generation born abroad, so Citizenship can pass to your baby. You must file for a Citizenship Certificate.

Based on the new naturalization act, your child will not be able to pass Canadian Citizenship to her children unless the children are born in Canada.
zyggyNot TellingCanada2009-01-08 13:24:00
CanadaA Canadian/US baby
To get a Canadian passport for the baby, You have to first apply for a Citizenship Certificate for the child through CIC. After you have the citizenship certificate, you can then apply for a passport. The citizenship certificate takes about 6 months to get.
zyggyNot TellingCanada2008-11-18 11:10:00
Canada2008 Filing Income Tax Return
QUOTE (jhunjhun @ Feb 11 2009, 07:26 PM) <{POST_SNAPBACK}>
Hello, I was just wondering if we can file our 2008 tax return electronically when I get my SSN? I spent 164 days here in USA in year 2008 and I'm not a green card holder. Meaning, I didn't meet both substantial residency test. I been here in USA for about 7 months (= more than 180 days if 2008 and 2009 combined) now and my AOS interview went well today but the lady cannot approve my green card because she wanted us to file our 2008 tax return as my wife income for 2007 was below the poverty limit. I just received my EAD card today and I'm going to SSA office to apply for my SSN tomorrow. I was wondering if we can file our tax return for this year electronically using efile? Thank you very much!!!!


I would say no... IRS checks your SSN against the numbers the SSN gives them. I'm not sure if SSA is going to get your SSN to the IRS that fast, it's probably going to reject if your e-file.

I think you're going to need to wait a month or so for IRS to update their records or you can mail it in.
zyggyNot TellingCanada2009-02-12 13:28:00
CanadaBoyfriend or Fiance?
On that article, that couple was nailed because they made a material misrepresentation to the officer. What that means is if your misrepresentation would make a material difference in an officer's determination of your admissibility, it carries significant penalties. THe CBP officer is the sole judge on whather your statement is a material misrepresentation and there is no appeal once that determination is made.

As a former CBP officer, It it my opinion that there is a material difference in the strength of your relationship and therefore your ties to the US between the terms boyfriend and fiancee. BOth connotate a relationship, but one has a much higher level of commitment.

If you have a fiancee, I would use the term fiancee... If the commitment to marriage isn't there yet, then use boyfriend. I believe most people on here have made that commitment and therefore should use the term fiancee and allow the CBP officer to make the decision on your admissibility. YOu've come to far to find yourself with a ban on admission to the US because of a difference in terms.

If you come prepared, the fact you have a fiancee in the US shouldn't be a bar.
zyggyNot TellingCanada2009-02-18 16:49:00
CanadaSSN number
I would apply for the SSN ASAP.... It opens a lot of doors for elsewhere. To get your name changed on it after marriage is relatively easy.

Plus, there are people who have had issues getting a SSN with a K-1 after marriage.


zyggyNot TellingCanada2009-02-12 13:31:00
CanadaMust file CANADIAN and US Taxes
QUOTE (liz_legend 'n Ol @ Mar 4 2009, 10:54 AM) <{POST_SNAPBACK}>
Moved to USA in Nov 2007.
I live in VA and work at the Canadian Embassy (subject to Canadian Taxes - T4) and also have a PT job with an American Employer -W2..
I'm a Canadian Citizen.

Married in Jan 2008 to a US Citizen who works for a US Employer-W2 (nice and straight forward)

We also bought a house in Nov 2008.


So, Is there anyway possible that I can do our Taxes myself with Tax software for Canada and the US? or do I need to shell out $1000 and get an accountant who can do both US & Canadian Taxes to do it for us?

HELP!

PS. I'm going to the LEAFS vs. caps game tomorrow night! woooohooooo!



It is very important you come to the thread. Your situation is very complicated and it is VERY important that you do things right. If you don't it would jeopardize your PR status.

Zyg
zyggyNot TellingCanada2009-03-04 22:00:00
CanadaMy brother in the military?
I agree... being a JAG could open more doors to him than going to a private firm out of law school, especially if he's not the top in his class. As a former military officer, I salute his sense of duty to his country and wish him the best.
However, make sure he just goes into the JAG commissioning process. The JAG process is a very demanding process and there is no obligation to join if he is not selected. If he goes into the normal commissioning process with OCS, he may not get to be a JAG and he will be commissioned as a regular officer, meaning he could be sent anywhere doing anything. If he went through the normal JAG process, he would be commissioned as a First Lieutenant, unless he went through the student program (OCS while in law school, commissioned as an inactive reserve second lieuitenant through law school and then promotion to first lieutenant after passing the bar exam and the Naval Justice School.)

He should not under any circumstances be talking to a normal recruiter if he only desires to be a JAG officer. He should only be talking to a JAG recruiter through the law school.

Edited by zyggy, 09 March 2009 - 08:11 PM.

zyggyNot TellingCanada2009-03-09 20:07:00
CanadaFind "real" Coke made with sugar
QUOTE (Married_my_love @ Apr 2 2009, 12:57 PM) <{POST_SNAPBACK}>
QUOTE (La Souris @ Apr 2 2009, 02:32 PM) <{POST_SNAPBACK}>
The Consumerist article also states that you can find some in Mexican Grocery Stores, but I didn't have the chance to confirm that...


We live in So. California and several of our local mexican fast-food burrito type places sell the "real" sugar bottle coke. My canadian Dh buys 2 whenever we're somewhere that has them... one to gulp down immediately and the other to take home and try not to gulp down immediately.



THey sel Mexican cane sugar Coke in every convenioence store here in AZ. THey even sell cases of it at Costco.
zyggyNot TellingCanada2009-04-02 16:28:00
CanadaInsuring your Canadian House
I know Economical does this. I have a cottage in Canada that I insure with them. From what I understand, they are one of the few Canadian insurers that does. CUMIS used to as well, but I'm not sure if they do anymore. Expect to pay 50% more.


Edited by zyggy, 02 April 2009 - 04:24 PM.

zyggyNot TellingCanada2009-04-02 16:23:00
CanadaTaxes and form 2555 Excluding foreign earned income
QUOTE (Texanadian @ Jan 16 2009, 12:53 PM) <{POST_SNAPBACK}>
Can you show me where or how this works? Because when I did the 2007 return, there was no mention anywhere of being in a 25% tax bracket during calculations.



See the Foreign Earned Income Tax Worksheet- Page 37 in the instructions to Form 1040.

Edited by zyggy, 17 January 2009 - 03:12 PM.

zyggyNot TellingCanada2009-01-17 15:12:00
CanadaTaxes and form 2555 Excluding foreign earned income
QUOTE (Texanadian @ Jan 14 2009, 10:24 PM) <{POST_SNAPBACK}>
Hmmmm, if we added our income, it would have meant the 25% bracket. But we were married-joint and in the 15% bracket using the 2555-EZ (excluding Cdn income)

The wording of the 1040 is a bit confusing. Because if you look only at the 1040, it says add up the lines from 7-21 and line 22 is your total income......The 2555-EZ says to put in your foreign income on line 21 of the 1040, which would make it seem like it's being added to your total on line 22. But you actually subtract it rather than add it. So in reality, it is being added to your 1040 and then it's being subtracted to your 1040.

The net result being the 1040 only taxes the US spouse's income.

The AGI is on line 37 which comes later on. The 2555-EZ amount (assuming you made less than $85,700 foreign income or whatever the limit is for your tax year) is invisible to the AGI.

(I filed as resident alien for the entire year. Also meant I was eligible for the full stimulus package that got mailed out last year. Non resident aliens wouldn't have qualified)



That's how your AGI is calculated but it is NOT how your taxes are calculated. THe way the taxes are calculated is they take the Tax calculated on the 25% bracket and subtract it from the taxes calculaed on the amount of Foreign income (probably 15% tax bracket). It subtracts the former from the latter. So the tax will be higher in this case than if it was calculated on the USC income alone. Especially if both incomkes together push you into a higher tax bracket.

Edited by zyggy, 16 January 2009 - 12:34 PM.

zyggyNot TellingCanada2009-01-16 12:33:00
CanadaTaxes and form 2555 Excluding foreign earned income
QUOTE (S & J @ Jan 12 2009, 07:50 PM) <{POST_SNAPBACK}>
Hey All,
Just wanted to clarify some info as prior posts relating to taxes always refer to using form 2555. As I was contemplating going back and amending my husbands (the USC) income tax returns to married filing jointly and then excluding my Candian income using this form I found out that in 2006 the legislation changed and it is no longer so black and white.

They have changed it so that even though the foreign income will be excluded the income that is to be taxed (eg. my husband's US income) is now taxed at a higher rate - and from what I have read it starts at 25% (previously 10%). Needless to say the couple of hundred I expected to get in a refund had I filed actually would have had us owing.

So for all of you who are like me and have foreign income - it looks like the new favorite choice would be including all of your foreign income in the T1040 and using Form 1116 for the Foreign tax credit.

Obviously, this isn't meant to replace any tax accountants advice, but I wanted to put the warning out there - if you have a tax program run the numbers using the different scenarios instead of soley using Form 2555.



Using Form 2555, you have to look at the entire picture and understand how it works.

1) When you use Form 2555, one needs to understand that the way taxes are calculated is a little different. Most people expect that you pay the amount on the AGI after the foreign income has been excluded. THis is not the case. The tax you owe is calculated as follows:

a) tax is calculated on taxable income with the foreign income
cool.gif tax is calculated on foreign income amount

the tax that is owed is a-b

If one is filing MFJ, and the foreign income is such that income a is in one tax bracket and income b is in amother tax bracket, you could end up paying a larger percentage of tax that one would expect on just the USC income alone as MFJ.

2) You can declare the income and use form 1116 and take a foreign tax credit on the foreign income amount. This could result in a lower federal tax, however, if you live in a high state tax state, you could take a big hit in state taxes since your AGI would be higher than with option 1.

The lesson is that you have to do your taxes several ways and see which method leaves you with the lowest overall tax burden. There is no one clean cut way to do it.

And doing either option 1 or 2 is almost always more beneficial than doing your taxes as MFS.

Edited by zyggy, 14 January 2009 - 05:14 PM.

zyggyNot TellingCanada2009-01-14 17:09:00
CanadaPOE ?
QUOTE (Crikey! @ Feb 19 2008, 09:05 AM) <{POST_SNAPBACK}>
You have up to one year to import your belongings after entry to the US. Check this site for a port of entry near you. You don't have to return to the border to do it.

As for the car ownership issue.... since yours is packed away I'm wondering if we're talking about the same thing...... because it's a requirement for you to carry your ownership in your car. It's the small one that people usually keep in the same envelope as their proof of insurance. The one that you put the sticker on when you renew your license tags.



You actually have 10 years to import all of your stuff.. but the car is kind of an exception due to DOT and EPA regulations. All Catou needs is the registration for the car and the compliance letter. CBP will take care of the rest of the paperwork.
zyggyNot TellingCanada2008-02-20 10:49:00
CanadaPOE ?
QUOTE (Catou1181 @ Feb 19 2008, 08:24 AM) <{POST_SNAPBACK}>
QUOTE (Crikey! @ Feb 19 2008, 10:21 AM) <{POST_SNAPBACK}>
You just need your ownership and your compliance letter, Catou. Here's some additional information.


So basically, if I don`t find the original papers of my ownership of the car(Im guessing that my immatriculation papers aren`t enough), I can always say that Im importing my car at a later date when I find my original ownership paperwork that`s packed away in a box ? And I`d be good with that ?



Catou,

Your car has to be imported when you do... find the papers and get the compliance letter... it will save you a big headache.. and that's all you need... Title (registration) and compliance letter...

the sticker stuff is if you wantr to import your car to Canada... much more difficult..
zyggyNot TellingCanada2008-02-19 10:33:00
CanadaAm I crazy?
Rexalite, you asked me to come out of my semi-retirement here to post on your case. I am a former CBP officer and there is definitely an overstay for Canadians.. It's 6 months. If you have stayed in the US for longer than a 6 month period without a written authorization or extension from USCIS, you have overstayed and are subject to the bans on reentry to the US.

Please realize that even though you may manage tohide this fact from the State Dept when you may be soccessful in getting a visa, you will not be able to hide this fact from CBP. THey know when you left and when you entered. It is CBP and not the State Dept, who determine who is and is not admissible to the US. THere have been many people who have had visas, only to see themselves denied entry due to some fact of inadmissibility that the State Dept. missed.

If you follow your current course of action and levae the US to get a CR_1 visa, you will surly be at a high risk denied entry when you attempt to enter the US whether Montreal issues the visa or not. Either way, you're lookign at 18 months for a waiver and another CR-1 application.

You say you have a child... do the smart thing. Stay with the child and your husband and withdraw the CR-1 petition and change it over to a AOS in the US. Overstay is forgiven for an family originated AOS case. It is not once you leave the US.

THis is not the time to be stubborn and wrong headed. THis is the time to think of the high risks and low rewards. You have a legal route to a green card open to you with very low risk and a very high chance of approval as long as you didn't misrepresent yourself when you entered the US in the first place, which it appears you did not. You would be a fool not to follow through with that route.

No one will be sorry for you, least of all me, if you keep up your current path and fail to sit down and logically consider your options. I would say right now, you have two paths to get to where you want to be. One is walking off a cliff and one is following the long and windy path. Going to Montreal is walking off a cliff. It's faster, but you're going to almost get killed in the process. THe path is AOS, it will take longer, but you'll get where you want in one piece.

Edited by zyggy, 28 April 2009 - 04:59 PM.

zyggyNot TellingCanada2009-04-28 16:58:00
CanadaWorking for Canadian Company
QUOTE (Krikit @ Sep 23 2008, 06:05 AM) <{POST_SNAPBACK}>
I think I love you, Zyggy. Will you be my new tax accountant? luv.gif



Chuckle... sure... no problem...
zyggyNot TellingCanada2008-09-23 10:45:00
CanadaWorking for Canadian Company
QUOTE (Krikit @ Sep 21 2008, 05:42 PM) <{POST_SNAPBACK}>
QUOTE (monicatony @ Sep 20 2008, 11:02 AM) <{POST_SNAPBACK}>
While we are on the topic..... I was curious about the tax situation myself and haven't yet researched what to do for this coming spring. I work in Canada for an airline and have continued to work there during this whole process. I was granted PR status April of this year but have not been able to transfer to a job in the US so I continue to fly back to Canada to work and then fly back to the US on days off. During the first year of our marriage, before I became a Permanent Resident, I declard on my Canadian taxes that I was married and that my spouse did NOT make any income in Canada. He declared something similar on his US taxes. What is the process for declaring income in the US for me this year? I still do not technically make any income in the US.
Any tips?

Use Form 2555.


Watch yourself Krikit... that doesn't apply in this case.

CRA and the IRS generally recognize that on the day you received your GC, you ceased to be a tax resident of Canada and became a tax resident of the US. You should use the resident date on your GC as the date you left Canada on your Leaving Canada return. Form 2555 cannot be used to exclude any foreign income once you became a tax resident of the US, but can be used to exclude foreign income that was earned prior to issuance of your GC. You can claim a foreign tax credit against your US taxes for any income earned in Canada after your Green Card was issued using Form 1116.

TO the OP, at this point in time, you would be better off requesting that your employer not withhold any Canadian taxes on your income and instead see if they can treat you as a contractor and you pay estimated tax payments to the IRS for US self-employment taxes if you can. If not, you would most likely be better off informing them of your non-resident status and be taxed at the non-resident rate of 25%. In any case if you continue to work in Canada, you will lose out on the foreign tax credit as Canada taxes a lot higher than the US especially with the currencies almost at par. You can only obtain a credit against the maximum the US would tax you at.

You most likely should have informed your employer of your status as a tax non-resident at the time of you received permanent resident status. If you didn't, you're probably going to be hit with a large tax bill this year as your deductions end with your leaving Canada date. I would suggest looking into your situation and consider informing your employer of your non-resident status and request to be taxed at the non-resident rate of 25%. But that may not be the case depending on your income, but in most cases it is.

In your case, if you are going to continue residing in the US and working in Canada, it is imperative that you consult with a cross-border tax expert who can help you make the right choices to minimize your cross-border tax burden.

Edited by zyggy, 22 September 2008 - 06:43 PM.

zyggyNot TellingCanada2008-09-22 18:17:00
CanadaWorking for Canadian Company
WHat this means is that you are essentially self-employed...

In my opinion as a tax advisor and someone who has been in the immigration arena, I would be very diligent on whether this situation as described runs afoul of US Tax and US Immigration law. In the situation you describe, in the eyes of tax law, you most likely will be viewed as a contractor to the Canadian firm and would be responsible for paying US Income and Self-Employment taxes on the contractual income. If tax law sees you as self-employed, in terms of US Immigration law, would you be considered your own US Employer?

I can't answer that.. only a court of law can. Are you willing to risk losing what you have tried to gain, either through tax or immigration consequences. Beware of persons telling you to go ahead and do it. Remember that in immigration law, the burden of proof in an administritive law court situation is much lower than in an actual court of law. In Civil and Criminal law, the burden of proof is on the government to prove that one does not qualify for the benefit. In Immigration, the burden of proof is on the applicant to prove that they qualify for the benefit. A very important distinction. In immigration law, you are essentially guilty until you prove yourself innocent.

I cannot tell you what to do, I can only alert you to the risks of what you propose and the consequences for doing so, but I would do a lot more due diligence that just following what some people state on a discussion board. You must make find the right resources (a qualified tax and immigration attorney would be one), analyze the facts and make your own decision.

Edited by zyggy, 18 September 2008 - 04:55 PM.

zyggyNot TellingCanada2008-09-18 16:51:00
CanadaIRS cracking down on Canadians spending time in US
Actually this is allowed under the tax treaty between the US and Canada. THe purpose of the form is to determine how you fall under the provisions of the tax treaty. Pure and simple...

I wouls say for almost all snowbirds.. this is not a problem. It's probably more of a problem for people with substatial passive income. If you are spending a lot of time in the US, then it goes to say that a portion of your passive income should be taxed by the US and vice versa. This form is the same thing as a NR-73 form.

Edited by zyggy, 28 May 2009 - 06:02 PM.

zyggyNot TellingCanada2009-05-28 18:00:00
CanadaDoes anyone know if Neo Citron is available in the USA.
I have boxes of both and checked the active ingredients. They are both the same as follows:

Adult Colds and Flu:

Pheniramine 20 mg
Phenylephrine 10 mg
Acetaminophen 325 mg

NeoCitran and Theraflu are one and the same... so you can buy Theraflu with confidence.
zyggyNot TellingCanada2008-10-06 17:59:00
CanadaDoes anyone know if Neo Citron is available in the USA.
They do have it in the US but it's branded as Theraflu, and they are the same. They come from the same factory, just different name.

Edited by zyggy, 01 October 2008 - 10:58 AM.

zyggyNot TellingCanada2008-10-01 10:56:00
CanadaGoing back to Canada-giving up citizenship
He would have to turn in his GC to the nearest American Consulate.
zyggyNot TellingCanada2009-06-01 13:24:00
CanadaCrossing a land border


I went across Maine when I entered the USA back in Dec 2004. Went with a Uhaul truck!! I drove up to the POE officer, told him Iwas there to activate my cr-1 visa,he said, ok, go pul lup to one of the stalls and go inside. Parked, went inside, I was the only person there!! Walked up to the Customs dude, gave him my inventory list (all the stuff in the Uhaul truck, just put into a word document using "tables" nothing fancy) He looked over the list and sent me over to Immigartion. I gave them the Brown envelope. They looked it over. They had to make a few phone calls to ensure they did it properly. Asked a few basic questions, fingerprinted me, and put aink stamp on the opposite page of the visa Mtl put in my CDN passport, and that was it!! They kept al the contents of the brown enevlope, gave me back my passport (never showed them the xray) and that was it for Immigration!! Went back to Customs dude, he said everything was OK and off I went. They never looked inside the truck. Did not take that long. Very easy process. That was my experience. Best of luck



Ditto here. Such a simple process. :yes: However, this is as CR-1 visa. I do not know what the K-1 visa is like. We do not have an I-94 or anything else stamped in our passport. :whistle:

Good luck!!!


You don't get an I-94 for a CR-1.
zyggyNot TellingCanada2006-02-13 11:31:00
CanadaCrossing a land border

So what is your I94? And where is it? In your passport? Iknow you need copies of it for everyting with AOS..so when and where do I get it?



At a land border, the CBP officer will create the I-94 for you in the secondary processing area. They staple it to your passport on the page opposite your visa.

Basically you need to tell the officer at the primary inspection point (the booth), that you are activating your K1. They'll send you over to secondary and you go in, present your visa and brown envelope. They'll look over the stuff in the envelope, produce the I-94 and stamp your passport with the stamp over the visa. That's it...

Edited by zyggy, 13 February 2006 - 09:34 AM.

zyggyNot TellingCanada2006-02-13 09:33:00
CanadaAnnoying Tax Problem
QUOTE (Misty1979 @ Jun 17 2009, 06:52 PM) <{POST_SNAPBACK}>
Hi guys!

I know it's waaay past tax season now, but we're a little behind filing our joint taxes this year because I was away in bootcamp when it was time to file, then I came back, and since then we've been trying to get our hands on one single W2 so we can finish up our taxes and send 'em in.
The situation is this: My husband worked part time for Blockbuster Video last year while attending college. When tax season came, he lost the original W2, but has since requested a new one THREE times! The first time, he just spoke to his old boss at the store itself, and she said she'd order it. When it never showed up, he called her again, and she informed him that he would have to call head office himself and order it. So he calls and speaks to a lady, and she says it'll be here in 7-10 business days. Again, it doesn't show up. Once again, he called the head office, explained that he keeps ordering it and that it's not showing up, and makes sure they have our correct addy. The lady this time sounds like she really is ordering it (he said she took his time with him, was prudent on getting all his info, etc..) then tells him the same thing: 7-10 business days.
Well now it's been about 11 or 12 business days, and in total, more than 3 months chasing this one stupid W2, and I'm fed up! We really need this refund money to pay off my credit card in Canada, but I'm out of ideas.

Does anyone else know of a way to get a W2 without calling the employer? I know there must be some other way, since businesses go bankrupt all the time and just disappear without a trace, and I'm sure the employees there still get their taxes taken care of.
I thought maybe he could somehow print it online, but he says it's not possible...does anyone else have any ideas?



You can call the IRS for a copy - 1-800-829-1040
zyggyNot TellingCanada2009-06-18 11:39:00
CanadaDO YOU HAVE TO IMPORT YOUR CAR AT THE P.O.E.
QUOTE (Sheila78 @ Jun 14 2009, 06:36 PM) <{POST_SNAPBACK}>
QUOTE (trailmix @ Jun 14 2009, 06:17 PM) <{POST_SNAPBACK}>
QUOTE (Sheila78 @ Jun 14 2009, 05:05 PM) <{POST_SNAPBACK}>
That's just the thing, I don't want to register my car in the U.S., I want to give it to my mom who lives in Canada, I'm glad they probably won't even ask about it, I just wanted to make sure, thanks.



They did ask me about our car. We had planned on importing it later - he said we couldn't, so we went ahead and imported it that day. However that is different - you have no intention of importing your car, so I don't see why they would have any objection.



Thanks Trailmix, I hope they let me take it to Michigan temporarily, do you think they will believe my story about giving the car to my mom? I hope they do, otherwise all of that paperwork will not be worth it. Should I just sign the ownership over to my mom before I move, that way it will show full intention that I don't plan on keeping it? Thanks in advance, Trailmix



Why don't you transfer ownership of the car to your mother before you leave. That way you won't have to worry about it.

As a side note, it may be more difficult to transfer ownership after you have entered the US as you won't be able to go back with a K-1. I would transfer the ownership a few days before you leave.

Edited by zyggy, 16 June 2009 - 06:01 PM.

zyggyNot TellingCanada2009-06-16 18:00:00
CanadaCanadian Spouse visiting USC spouse-CBP situation
You need to have a good reason for the extension... "Because I just want to stay longer" is not a valid reason... "Because I'm having surgery by a renowned surgeon in the US and I have complications and it's going to take longer" is.

Sorry.. you can't have your cake and eat it too. She needs to get on the plane by the date on the I-94. Don't be a fool and risk everything because you just want to stay longer.

Immigration is not meant to be warm and fuzzy. It's meant to be hard. WHere immigration is concerned, instant gratification is bad... taking the long term view always brings better results.

Edited by zyggy, 12 August 2009 - 06:50 PM.

zyggyNot TellingCanada2009-08-12 18:49:00
Canadahow long does it take driving from Toronto to LA,CA
Detroit to Phoenix was 33 hours. From Detroit to TO is about 3 hours and PHX to LA is about 5.. so the 42 hours is about dead on...

Best route is TO - Sarnia - I-94 in Marshall, MI to Chicago - St. Louis, Oklahoma City and then I-40 through OK, TX, NM, AZ and CA to LA. You avoid a lot of weather problems this way.

Like Warlord, I did the trip in two long days , stayed in Tulsa for the night.

Edited by zyggy, 04 September 2009 - 10:31 AM.

zyggyNot TellingCanada2009-09-04 10:29:00
CanadaBank can't handle investments anymore
QUOTE (Arabella @ Aug 18 2009, 05:05 PM) <{POST_SNAPBACK}>
QUOTE (Inky @ Aug 18 2009, 07:51 PM) <{POST_SNAPBACK}>
if my fiance doesnt use USAA can i still use it since id be married to military? or does he have to be using it for me to be able to use it? I dont really have another canadian bank that i trust to hold my money for me, if my mom puts it into her account and then i have custom house wire it from my moms account to my new account is that possible to do? or would that just make it really complicated, more so than now.


Hmm I think you can still use them. I have USAA and am divorced from my military person. Call them at 800-531-2265 if you get a chance. Why wouldn't he sign up with them or help you if you asked?



The person eligible for membership (in military)must sign up first and then sponsor their spouse.
zyggyNot TellingCanada2009-08-19 19:53:00
CanadaBank can't handle investments anymore
QUOTE (Inky @ Aug 18 2009, 12:24 PM) <{POST_SNAPBACK}>
QUOTE (Inky @ Aug 18 2009, 02:44 PM) <{POST_SNAPBACK}>
Yea I went in and spoke with them and signed stuff, had my address changed. Had to close out the account but BMO is keeping the money till they can wire it to me in the states.. They said that the rules had been changed and they can only close my accounts and wire the money to the american bank account that i open when i get there. The process is in place to close the accounts already, not a happy day for me =(.
Not sure what to do when i get there about what bank to open with so i can just get some kind of high intrest savings and dump it all in there and leave it there... seems like thats the only option i have right now cus they had no advice on what to do with it in america.

I do have to file taxes for 2009 here cus i worked and stuff, im not going to owe anything tho as i didnt make enough to owe. prolly gonna get a little back too.

any ideas on a good place with high intrest stuff i can put my money in or something? my fiance is military and i heard about a military bank thats safe but dont really know anything about it. he uses sacfederal credit union.




What they are doing is absolutely bogus. Seriously, talk to someone higher up in that organization. I agree that you should remove yourself from BMO, but take your money to another Canadian bank for now. You're going to be taking some pretty big tax hits if you allow them to wire than cash to the US.

On the military banking side, I definitely recommend USAA. They have awesome banking tools, their insurance is top notch, no fees and their investment products are rated among the highest in the industry. It's an organization that values you and your finacial security instead of their profit line. You are eligible to become a member after you are married.

THere are two toher financial institurions that were created by military members for military members. Pentagon Federal Credit Union has some of the best credit card and auto loan rates around. Navy Federal Credit Union has some of the best home mortgage rates around. I am a member of all three. They all have their strengths and weaknesses.

Edited by zyggy, 18 August 2009 - 06:06 PM.

zyggyNot TellingCanada2009-08-18 18:03:00
CanadaFiling 2006 Canadian Income Taxes

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

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

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

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

ANy other questions, ask away...


Zyggy,

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

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

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


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

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

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

Edited by zyggy, 21 March 2007 - 07:23 AM.

zyggyNot TellingCanada2007-03-21 07:19:00