Income Tax question

[EmilyandJason 0]

Here is a really useful tax guide:

http://www.cra-arc.gc.ca/E/pub/tg/t4056/t4056-e.html

The 216 return is for a non-resident who receives Canadian source rental income.

The 217 return is for a non-resident to elect to file a Canadian return.

A lot of people have asked how to include their spouse, this guide provides that answer as well:

enter your spouse or common-law partner's net world income for the part of the year you were a resident of Canada.

For the year you emigrate there are special instructions - you file one return for the year. You have a choice - claim income only to the date you left, or claim it for the whole year. You do not received provincial tax credits for the period you were a non-resident.

Special instructions: http://www.cra-arc.gc.ca/E/pub/tg/t4056/t4...html#P192_20253

Hope this helps.

[lincoln81 0]

Thank you:) But OMG I am still so confused. I've resided in Canada for this whole year, but we were married in July 07.

I'm unsure whether to use his yearly income or just what he made from the time we were married until December.

Thanks

[EmilyandJason 0]

I believe you would use the his world income from the time you were married.

Sorry, I don't have a ton of time at the moment to think on this. Can anyone else give it a shot?

I'm away for the weekend but can look at this in more detail on Monday if you've not got an answer by then.

[EmilyandJason 0]

It wouldn't let me edit .. weird.

I wanted to just add:

This shouldn't affect your Canadian return and will have no affect on you at all unless you were qualifying for the GST credit, if this is the case your husband's income may put you over the income threshold and you would stop receiving the credit cheques.

Sorry, I don't have a ton of time at the moment to think on this. I can't recall off hand what the guide says ... can anyone else give it a shot?

[Emancipation 2]

Anyone know what the non-resident withholding tax rate is that I need to use for the Schedule C - Electing under Section 217?

SOOO Confused...

[EmilyandJason 0]

Anyone know what the non-resident withholding tax rate is that I need to use for the Schedule C - Electing under Section 217?

SOOO Confused...

I'll look into it and get back to you ...

I feel a bit sheepish being an accountant and all but I really have zero experience with international tax issues. I'm guessing if you didn't set up your income to have the 25% NRT (non-resident tax) you may not have the option of electing under 217. I'll re-read the stuff and see what it says.

[neiks 19]

Oh brother, I just can't wait until next year when I actually live in the U.S. but still work in Canada...that will be real complicated.....lol

Hey Linda, I'm in that exact situation right now. I was getting nervous about tax time but I found a CA that was experienced in CAN/US tax. I just had a meeting with her last week and all my worries are at rest. She was really knowledgable and it doesn't seem like it's going to be so bad and was really surprised at the deductions and credits I could still use and how the US/Canada tax treaty will eliminate the urban myth that you will be double paying taxes in both countries. I suggest you find an accountant or tax preparer that is good and experienced in CAN/US tax - at least for the first year.

[EmilyandJason 0]

I agree with Neiks, if you can afford it go with either a CA/CGA or a CPA depending It honestly doesn't cost much more than H&R block.

[neiks 19]

I agree with Neiks, if you can afford it go with either a CA/CGA or a CPA depending It honestly doesn't cost much more than H&R block

I was also surprised that it wasn't all that expensive. I know that checking on some websites for international tax preparation that some were charging $500-1800. I was quoted less than $100 per return.... money well spent as far as I'm concerned, I was expecting to have to pay alot more.

[LindaB 0]

Thanks everyone for the information.

What I ended up doing is, still used QuickTax and added in his income (with a conversion percentage that H& R Block gave me and then wrote an letter explaining the situation and let them fix it if needed. Will see what I end up with. Next year, when I actually live down in the U.S. and still work in Canada I will definitely have to go to an accountant that specializes in Can/Us Tax

[Merte 0]

Neiks,

I have a question for you. Where did you find this tax accountant that was knowledgable in US/Canada returns? We live in Georgia.. I would appreciate knowing where to find these people that don't charge an arm and a leg.