2010 Tax thread - For Canada and the U.S.

[Malrothien 6]

They don't need original signatures - we always used fax/email for our NR returns.

[hapycloud 0]

Hey all!

I am in the process of doing my US tax return, mu husband is currently receiving EI benefits. How do I list that on my US tax return, do I include it under the unemployment insurance benefits even though its not US state unemployment benefits. This has me confused!

I already know I need to file an IRS form for his foreign bank accounts over 10,000 and claim the intrest from this money under the bank intrest part of the tax return.

Thanks for your help in advance!

[Malrothien 6]

It would be foreign income, Hapy.

[The_Dude 1,142]

What is the real difference between excluding foreign income (form 2555) and the foreign income credit (form 1116). I'm not worried about my wife's canadian taxes as her mother is well qualified to handle thos. I am concerned about what sort of documentation is required to show foreign income with my U.S. taxes. I'm leaning towards excluding the foreign income (form 2555) merely because it's a much shorter form to fill out. But what sort of documents will I need to submit to prove the amount that my wife made?

[Malrothien 6]

I never submitted anything with my 2555. I would just keep bank statements/T4's available should the IRS ask for them.

[trailmix 77]

I never submitted anything with my 2555. I would just keep bank statements/T4's available should the IRS ask for them.

I didn't include any slips either.

My understanding is that the 2555 is only applicable if your tax home is in a foreign country for basically the entire year - not if you only lived there part of the year but your tax home for the year in is the U.S.

[The_Dude 1,142]

I didn't include any slips either.

My understanding is that the 2555 is only applicable if your tax home is in a foreign country for basically the entire year - not if you only lived there part of the year but your tax home for the year in is the U.S.

Considering that my wife didn't earn any income in the U.S., and only payed taxes in Canada, wouldn't that be her tax home?

[trailmix 77]

Considering that my wife didn't earn any income in the U.S., and only payed taxes in Canada, wouldn't that be her tax home?

No, if I remember correctly she immigrated in March of last year? Much more time in the U.S. than Canada then (if I have that month right).

I really need to look at our 2008 U.S. taxes to see how we handled them, I don't see them on this computer, just the Canadian ones, so I have been putting off going in search of them

Which I need to do for our 2009 - to remember what I didddddd

[The_Dude 1,142]

No, if I remember correctly she immigrated in March of last year? Much more time in the U.S. than Canada then (if I have that month right).

I really need to look at our 2008 U.S. taxes to see how we handled them, I don't see them on this computer, just the Canadian ones, so I have been putting off going in search of them

Which I need to do for our 2009 - to remember what I didddddd

Now i'm even more confused than ever.

[SapphireDreams 71]

My Canadian accountant claims he can do my final Canadian tax return without any problems, so I'm just going to hand it off to him. I've never done my own taxes and wouldn't know where to begin! Hopefully he doesn't mess it up. If he does then out of sight out of mind...

So, wait, if you file as married you get a tax deduction? How does that work? I don't have any US income for 2009, just my foreign Canadian income, so will that hurt my husband's refund amount?

In the US when you file as married you get more tax breaks. I'm not sure of the specifics, but ultimately you are likely to get a tax refund if you are married vs. single.

Someone can correct me if I'm wrong.

This is what I've gathered for my taxes - I hope someone can correct me if I'm wrong...

I need to file in Canada and give them the date I left Canada - then they will pro-rate my tax credits for the time that I was living in Canada (January 1-June 6)

I can file as a married resident in the US - I will need form 1116 to include my foreign income. Any other forms I'm missing?

Is there anything else I need to do? Seems pretty simple. I've always done my own taxes and hubby does his, so we're going to try and do these as well.

[trailmix 77]

Now i'm even more confused than ever.

Ok well, I found our joint return for 2008 and we DID use the F2555!

It's really a pretty straight forward return - the 1040 and a 2555, that's it. Claimed my Husband's total income (foreign and U.S.) on line 7 - noted form 2555 on line 21 and deducted his Canadian income for a gross total of U.S. income only on line 22.

They accepted this return, I could not swear in a court of law that I actually did it right.

I think I should get out of this thread before I get thrown out

[The_Dude 1,142]

Ok well, I found our joint return for 2008 and we DID use the F2555!

It's really a pretty straight forward return - the 1040 and a 2555, that's it. Claimed my Husband's total income (foreign and U.S.) on line 7 - noted form 2555 on line 21 and deducted his Canadian income for a gross total of U.S. income only on line 22.

They accepted this return, I could not swear in a court of law that I actually did it right.

I think I should get out of this thread before I get thrown out

Ok, now i've come full circle on this. An hour ago, I thought I had it all sorted and was trying to work out some of the details. Then I find out i'm wrong and shouldn't be using that form, and now, it turns out I might have been right. I asked my sister about this as she's an accomplished accountant, albeit not a tax accountant. She's always helped me with my taxes, but when I started naming off forms that she'd never done before she kind of blew me off.

Thanks for confirming that info though, that does help quite a bit. The thing that keeps lingering in my mind though is that i've read numerous accounts of people not including any sort of documentation to verify the amounts of foreign income that you are deducting. I'm not doubting the validity of what people have said, It just seems odd that the IRS of all agencies in this world don't have some sort of freak-out meltdown for lack of documentation.

[minnew 4]

I'm still extremely confused on who can use the 2555 exclusion..(see last post in zyggy's thread)

Does tax home mean just 2009 or any 330+ days in which you lived in foreign country?

I moved to the U.S. Sept 21st, and became a PR "date" 12/14/09. When does Canada treat you as a non resident? Left Canada? Or PR in the USA date?

Still confused how my lump sum pension will be treated as well.

[trailmix 77]

Ok, now i've come full circle on this. An hour ago, I thought I had it all sorted and was trying to work out some of the details. Then I find out i'm wrong and shouldn't be using that form, and now, it turns out I might have been right. I asked my sister about this as she's an accomplished accountant, albeit not a tax accountant. She's always helped me with my taxes, but when I started naming off forms that she'd never done before she kind of blew me off.

Thanks for confirming that info though, that does help quite a bit. The thing that keeps lingering in my mind though is that i've read numerous accounts of people not including any sort of documentation to verify the amounts of foreign income that you are deducting. I'm not doubting the validity of what people have said, It just seems odd that the IRS of all agencies in this world don't have some sort of freak-out meltdown for lack of documentation.

Well, just to clarify. When I filed from Canada, I only filed for myself, used the 2555 and did not include slips.

When we were in the U.S. I DID include my Husbands T4 slip with the return (along with his W2s) - if I remember correctly.

.

[trailmix 77]

Since no one else is biting...I'll go first!

Question: if I obtain my SSN before my wife files her taxes, will she be able to file as married-joint with me, thus receiving a reduction for the 2009 tax year?

I'm pretty sure the answer is YES to that...but I'd like a bit more feedback if anyone can provide it.

Yes you can, and according to Zyggy you should:

http://www.visajourney.com/forums/index.ph...t&p=3555244

I can't find last years tax thread, does anyone have a link? I can only go back like one page on people's post history in most cases, for some reason.