Canada tax info

[Flames9_RN 358]

This should be my last yr!! I was paid up to Jan 12 2005!! I should have just took the lump sum $$$ instead of holidays!! lol

[Mishy_BC 0]

Wow, been a long time since I've been on but I knew exactly where to come for tax info. We are just starting to think about taxes...I thought I'd have to wait for the EI one but now I'm thinking not????

If the general consensus is no that I don't need the EI for CAN or USA taxes then I'm just going to go for it.

With all the help from you guys that I can get.

Good to be back...things look a little different in here.

Mishy

[Peggy 1]

Nice to see you Mishy

[Mishy_BC 0]

Just so you guys know, I just contacted EI and they are sending out T4's...she looked mine up and could see it had been generated on the system. So don't file without it :|

[Mishy_BC 0]

the more I read the more confused i get. Just tell me. The first year what forms should I file if I have income from Jan - March in canada, Canadian EI from April - July in USA, and USA job from July - Dec? I'm so confused.

[zyggy 9]

Just so you guys know, I just contacted EI and they are sending out T4's...she looked mine up and could see it had been generated on the system. So don't file without it :|

It doesn't really matter... you don't have to provide it with your US taxes... and since you received EI after your left Canada date, it doesn't go on your T1 either.

To determine how much you go for EI, just multiply the amount per week your payment was by the number of weekes that you reveived payment, then divide that number by 1.212 which is the average exchange rate for 2005 given out by the Federal Reserve. http://international.neded.org/exchrate.htm

To get the tax that they took out, multiply that number by 0.25.

You place the EI amount paid in the Other Income line on the 1040 and then you fill out Form 1116 to get the tax credit for it back.

So for example if you got the full $412 per week and you received it for the full 36 weeks the amount of EI that you go for 2005 would be $14,832 CAD

To exchange this into US dollars you divide $14,832 by 1.212 = $12,238 USD

You would place this number on Line 21 of your 1040. You would ten fill out an Form 1116. Your foreign tax taken out by Canada would be $3,059.00. You would use this to figure out your foreign tax credit. You would put the foreign tax credit that you figured out on the Form 1116 and place it on line 47 on your 1040.

the more I read the more confused i get. Just tell me. The first year what forms should I file if I have income from Jan - March in canada, Canadian EI from April - July in USA, and USA job from July - Dec? I'm so confused.

Your T1 would only include income between January 1 and the date that you left Canada that you placed on the first page of your T1, in your case in March.

Your 1040 would include the income from the EI as well as the income from your US employment.

Edited February 10, 2006 by zyggy

[Mishy_BC 0]

Thanks Ziggy,

That's actually what the IRS guy said...

but what's this about the 2555 form...does that come into play?

[zyggy 9]

Thanks Ziggy,

That's actually what the IRS guy said...

but what's this about the 2555 form...does that come into play?

That actually doesn't come into play for you since you've lived in the US for more than 6 months and the US is your tax home.

[Mishy_BC 0]

Thank goodness, so just 1040 and 1116. My husband and I will file married joint. Do I have to claim him on the Canadian one seeing we weren't married until after I came to USA?

[zyggy 9]

Thanks Ziggy,

That's actually what the IRS guy said...

but what's this about the 2555 form...does that come into play?

That actually doesn't come into play for you since you've lived in the US for more than 6 months and the US is your tax home.

Now that I took a closer look, I believe that you can take the money that you earned from January to March and include this amount on the Form 2555. You cannot use the 2555EZ.

[Mishy_BC 0]

so would I still use the 1116 and what changed your mind?

[zyggy 9]

so would I still use the 1116 and what changed your mind?

Nope, read the publication that deal with these things.. can't use 8555 since your tax home was in the US for the year...

Edited February 10, 2006 by zyggy

[Mishy_BC 0]

Thanks. I've been reading all this stuff and it's all a big whirl. So with the Canadian taxes I just file a normal return and put my leaving date in March? Nothing else matters to them? So in theory I can file on-line as usual? I hope so that makes it so much easier.

Thanks for your help zyggy...I've been so stressed.

[Flames9_RN 358]

ya, you don't have to include your husband on your Cdn ioncome tax return as he does not factor into the equations. Not entitled to any benefits. You COULD include him, In the SIN spot you would write down something like he is a Citixzen of the USA, and nver lived/worked in Canada, then have to put down his income converted to CDN $$, pain in the butt. better to just leave him off. I got those instructions from Revenue Canada last yr.

[zyggy 9]

Thanks. I've been reading all this stuff and it's all a big whirl. So with the Canadian taxes I just file a normal return and put my leaving date in March? Nothing else matters to them? So in theory I can file on-line as usual? I hope so that makes it so much easier.

Thanks for your help zyggy...I've been so stressed.

Actually it's not so easy as you have to reduce your deductions by the days that you were in Canada. It's better if you do it by hand...