Taxes! Taxes!

[Flames9_RN 358]

I used a tax program, and yes could not file electronically, I had to print it off and mail it in!

[David_n_Amber 3]

U.S. TurboTax

TurboTax Canada

The reason I like this program is you can electronically file your returns for a nominal fee, they are user friendly, and you don't have to be a tax wiz to follow along. Just hit the next button and the program walks you through all the different types of income and deductions and you answer 'yes' or 'no.'

oooooooo thanks for the links lol, my family can finally stop paying a useless accountant to fill out like 5 lines for 50/person

[SMASHROX 0]

So, I figure there's a few Canadian-American newbies going through filing for the first time as married, with income in both countries, and I can't be the only one that finds the IRS more confusing than immigration.

So here's an open thread where we can collect experiences. I'll start off with a couple questions:

U.S. Taxes:

1) C. has to file U.S. taxes, obviously. He has income earned in Canada before he moved down here, and income earned in the U.S. since he moved down here. Do we count his income earned in Canada as part of his adjusted gross income? If so, what do we do about the exchange rate?

Canadian Taxes:

2) This is sort of dumb, but now that we will file as married, will my income earned here count as income for him on the Canadian tax forms?

Any suggestions on software or forms or a link to a walkthrough would be much appreciated. I've read through the threads here, and am desperately in need of the process being explained in simple English.

As per my conversation with a very knowledgeable CRA employee, you file with the CRA for Can. Income earned, and with the IRS for US income earned, they cannot be on the same tax return, simple as that. Now, if you made Canadian income while living in the US (such as working for a Can. company, getting paid in Can. funds) then you would still have to file with the CRA. She told me that one currency earned is only applicable to THAT specific country. I would call the CRA & ask to speak to someone that is knowledgeable in this area just so that you know for sure. Good luck.

jen

As a point of clarification, if you are filing as a US resident (Form 1040), you are taxed on your WORLDWIDE income (US plus Canadian wages). However, you do receive a tax credit for any foreign taxes (i.e. Canadian taxes) you paid on your Canadian wages. This is just how the IRS treats your foreign sourced income. I do not claim any knowledge of how they do things in Canada.