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

[zyggy 9]

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.

[zyggy 9]

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.

[Hugglebuggles 60]

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.

Ok, so line 7 is just earned income (Ie. from my Canadian job) and line 16 is the just the pension income for all of 2009?

Thanks zggy, you're the man!

[Bern. 3]

Uh...should I file as married or single...I've been married since Feb 09...x_x

[Malrothien 6]

Married.

[Bern. 3]

Married.

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? ):

[zyggy 9]

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.

[beans 7]

Ugh...here we go: I'm easy I promise

My background:

Left Canada Aug 29,09-lived in MB.

Stopped working in Canada Aug 22 09

I did not apply for EI, do not have an RRSP or anything like that.

Didn't work in US for 2009

Received Greencard in 2010

I didn't tell the CRA I was leaving.

My questions:

What forms do I use for Canada and US?

How do I file my provincial taxes? Or do I even do them at all?

[Malrothien 6]

Beans, you do not need to file a return in the US since you didn't work at all during 2009.

For Canada, you just need to file the regular T1 personal return and on the front page of the return there is a section where you can put the date you left the country. When you file your T1 return (using something like TurboTax), it automatically does the provincial return with it.

Your question really was easy.

[minnew 4]

Ugh...here we go: I'm easy I promise

My background:

Left Canada Aug 29,09-lived in MB.

Stopped working in Canada Aug 22 09

I did not apply for EI, do not have an RRSP or anything like that.

Didn't work in US for 2009

Received Greencard in 2010

I didn't tell the CRA I was leaving.

My questions:

What forms do I use for Canada and US?

How do I file my provincial taxes? Or do I even do them at all?

Beans- even if you did not work in the US for 2009 as far as I understand it you will still need to declare your CAN income on your 2009 return, my guess would be married filing jointly for you & your husband. Even though you did not receive your GC or a PR until 2010, your husband can still elect for you to be treated as a resident alien for tax purposes. Publication 519 on the IRS website I believe explains it.

The CAN income earned in 2009 for purposes of your US return can be excluded from US taxes by using the Form 2555 Foreign Income Exclusion.

[trailmix 77]

Ugh...here we go: I'm easy I promise

My background:

Left Canada Aug 29,09-lived in MB.

Stopped working in Canada Aug 22 09

I did not apply for EI, do not have an RRSP or anything like that.

Didn't work in US for 2009

Received Greencard in 2010

I didn't tell the CRA I was leaving.

My questions:

What forms do I use for Canada and US?

How do I file my provincial taxes? Or do I even do them at all?

Hi Beans,

You don't have to file a U.S. return this year, however it may be more beneficial for your Husband to file with you jointly. You need to work out the two different scenarios - Married filing separately and doing it as a joint return, to see if you are eligible for credits.

For Canada, as Mal mentioned, you enter the date you left Canada and this will pro-rate your non-refundable tax credits etc. If you are going to do it manually then yes, you also need to get the provincial tax forms. As Mal also mentioned, much easier to do it online using Canadian tax software.

[beans 7]

Hi Beans,

You don't have to file a U.S. return this year, however it may be more beneficial for your Husband to file with you jointly. You need to work out the two different scenarios - Married filing separately and doing it as a joint return, to see if you are eligible for credits.

For Canada, as Mal mentioned, you enter the date you left Canada and this will pro-rate your non-refundable tax credits etc. If you are going to do it manually then yes, you also need to get the provincial tax forms. As Mal also mentioned, much easier to do it online using Canadian tax software.

Okay thanks guys, honestly I'm not going to do US taxes this year because I don't see the point in it. And I tried doing my taxes online and they kept asking me for my husbands information. Like SIN etc. He is on SS disability. So what do I do about the spousal information?

[Malrothien 6]

You can just do 000-000-000, that should work.

[sdhiman 0]

Mal...I used ufile.ca to get an idea on my return and entered my husband's SIN as 000-000-000 which worked but when I actually file the taxes, can I leave it as 000-000-000? Do I have to state his US income? I understand I cant e-file this year and need to print it and mail it because of 2 reasons (as per ufile):

1- I immigrated to Canada in 2009 (was on work permit before)

2- My husband doesn't have a valid SIN in Canada

Does that sound right?

Edited March 1, 2010 by sdhiman

[Malrothien 6]

That should be fine to leave the SIN as 0's. I would put on there that he isn't a Canadian citizen or PR. But yes, since it's your first return as a landed immigrant you have to paper file.

I'm not sure about the US income thing. :\