2008 Filing Income Tax Return

[jhunjhun 7]

Hello Fellow Canadians:

I entered here in USA as a visitor on July '08 to visit my fiance but we got married without a plan at all. I quit my my job in research back in Canada 'coz my wife wants me to stay with her. We just filed my AOS/EAD/AP papers this month. My main question is that, do you think my wife can claim me in her 2008 income tax return even I don't have income in USA ( i'm not allow to work without EAD)? Do you think we're eligible to file income tax for 2008 jointly or separately even i'm not a resident and no income at all? What are the steps or ways we need to get into in order to deal with this? I've read some messages/topics pertaining to this issue....but some says ...file jointly, separately...and some says: even your married, just put single when filing income tax...i'm very confused! When it comes to eligiblity for filing income tax return, it says that you must be in the US for 183 days or got married at the end of the year and plan to stay for the whole nxt year. My situation is quite different...when this year ends...I believe my number of days which I stayed here is less than 183 days and also I don't even know what would be my status after filing and the AOS is still on process. Do you think I'm no longer a visitor in USA? What would be my residency satus? Any profound suggestion will be appreciated.

[Kathryn41 3,205]

You are no longer a visitor - you are an applicant for adjustment to permanent residency. Tax residency is different than immigration residency. So, it is probably in your financial best interests to file married, jointly. You don't want to file single, regardless, as you need to use your income tax returns as part of your adjustment of status/removal of conditions applications that show you are presenting yourself as married to the world.

If you have income in Canada before you moved to the States you can choose to file as if you are resident full time in the US even though you spent time in Canada. You would then convert your income to US dollars, claim it as joint income in the US AND file a form claiming International tax credit to avoid double taxation on that amount. You need to file your Canadian income taxes first so you have the amount of taxes you paid. Since you did not have any income in the US you can also file your world income statement in Canada and instead of pro-rating your deductions, you can claim the full year's worth of federal deductions, garnering you a nice rebate from Canada as well as getting the benefits of married status through your US return.

One of the things we found really helpful is to pick up one of the big tax guides (Ernst and Young Tax Guide, etc.) for about $20 at a book store. They are definitely of great use in figuring out what is legally the best way to get the best return.

Regardless, since you are married you need to file as married. The most expensive tax rate is charged to married, filing singly, so do take a serious look at married, filing jointly - it worked great for us.

Edited November 30, 2008 by Kathryn41

[jhunjhun 7]

You are no longer a visitor - you are an applicant for adjustment to permanent residency. Tax residency is different than immigration residency. So, it is probably in your financial best interests to file married, jointly. You don't want to file single, regardless, as you need to use your income tax returns as part of your adjustment of status/removal of conditions applications that show you are presenting yourself as married to the world.

If you have income in Canada before you moved to the States you can choose to file as if you are resident full time in the US even though you spent time in Canada. You would then convert your income to US dollars, claim it as joint income in the US AND file a form claiming International tax credit to avoid double taxation on that amount. You need to file your Canadian income taxes first so you have the amount of taxes you paid. Since you did not have any income in the US you can also file your world income statement in Canada and instead of pro-rating your deductions, you can claim the full year's worth of federal deductions, garnering you a nice rebate from Canada as well as getting the benefits of married status through your US return.

One of the things we found really helpful is to pick up one of the big tax guides (Ernst and Young Tax Guide, etc.) for about $20 at a book store. They are definitely of great use in figuring out what is legally the best way to get the best return.

Regardless, since you are married you need to file as married. The most expensive tax rate is charged to married, filing singly, so do take a serious look at married, filing jointly - it worked great for us.

Thank you very much...it's really helpful but I'm still not quite sure what to do.....

I will not consider my self as a full time resident in the USA since I came here on July 2008 and adjusting my status after marriage. How can I file income tax jointly with my wife if I don't have income and I haven't got SSN. If i'm filing my income tax return in Canada, do I need to file it jointly as well?

[ChasingAmy 0]

You are no longer a visitor - you are an applicant for adjustment to permanent residency. Tax residency is different than immigration residency. So, it is probably in your financial best interests to file married, jointly. You don't want to file single, regardless, as you need to use your income tax returns as part of your adjustment of status/removal of conditions applications that show you are presenting yourself as married to the world.

If you have income in Canada before you moved to the States you can choose to file as if you are resident full time in the US even though you spent time in Canada. You would then convert your income to US dollars, claim it as joint income in the US AND file a form claiming International tax credit to avoid double taxation on that amount. You need to file your Canadian income taxes first so you have the amount of taxes you paid. Since you did not have any income in the US you can also file your world income statement in Canada and instead of pro-rating your deductions, you can claim the full year's worth of federal deductions, garnering you a nice rebate from Canada as well as getting the benefits of married status through your US return.

One of the things we found really helpful is to pick up one of the big tax guides (Ernst and Young Tax Guide, etc.) for about $20 at a book store. They are definitely of great use in figuring out what is legally the best way to get the best return.

Regardless, since you are married you need to file as married. The most expensive tax rate is charged to married, filing singly, so do take a serious look at married, filing jointly - it worked great for us.

I arrived in the US in mid Nov.. Married on Dec 27th and have not yet sent of tha AOS (doing it this week). I have my SSN already and my wife (the USC) is ready to do her taxes. We need help figuring it out. So far I have come to the understanding that we should file with me as a resident alien and file married jointly. I also have to claim my Canadian income if we do this? I wish we have a point form checklist for how to go about doing this in these situations

[Old Dominion 26]

You are entitled to file a joint return, which will save on US taxes. You as the immigrant must complete a W-7, which goes with the return, and the IRS will issue a TIN, or taxpayer ID number. If you are residing in the US and filing to get a green card, then you are not really resident in Canada any longer, right? So you wouldn't file there.

[Kathryn41 3,205]

You do need to file your exit taxes in Canada.

[trailmix 77]

You are entitled to file a joint return, which will save on US taxes. You as the immigrant must complete a W-7, which goes with the return, and the IRS will issue a TIN, or taxpayer ID number. If you are residing in the US and filing to get a green card, then you are not really resident in Canada any longer, right? So you wouldn't file there.

No, that's not true Old Dominion. The whole tax residency issue is kind of complicated for people to understand anyway and I don't think it is really helpful to come in and state something as fact when, actually, it is completely wrong.

The truth is you must file a Canadian return for the year you leave Canada. On the first page, where you enter you personal information, they ask you if you became or ceased to be a resident in the tax year and on what date.

With this information they pro-rate your non-refundable tax credits etc.

Edited January 21, 2009 by trailmix

[Udella&Wiz 325]

hey all - I had the very same situation last year - do not forget to file the form for the CANADIAN government which determines what type of Canadian resident you were for 2008 (or whichever year you've left. Canada considers you a resident unless you tell them otherwise - thus giving you lovely full credits - if it turns out later you of course were not a resident for the full year, YOU will end up paying back some money.

Of course I cannot remember the name of the form atm - I'll look it up when I get home. It was a simple form and could be faxed. I got a mail response from them indicating they considered me a 'factual resident' for 2007.

On the US tax side, my husband and I filed jointly, I did the W-7 mentioned above I think and actually gave a copy of my T4 slip so that the IRS had proof I had paid taxes on my 'world' income. So being taxed by the US gov was waived because of the tax treaty I assume.

At the moment the only problem I have is ensuring that for the 2nd year (1st full year outside CANADA) I have to ensure that Canada now understands I am fully non-resident. Although since I got EI early in 2008, I still have a Canadian tax return to file.

in all the confusion, I've had to contact the IRS who has confirmed when they considered me a resident and I have no issues with US taxes, just the CANADIAN gov is confused

[Krikit 1,164]

You are entitled to file a joint return, which will save on US taxes. You as the immigrant must complete a W-7, which goes with the return, and the IRS will issue a TIN, or taxpayer ID number. If you are residing in the US and filing to get a green card, then you are not really resident in Canada any longer, right? So you wouldn't file there.

What the heck?!!

Well, that's a relief. I'll just send RC a note when they start sending me all those mean and nasty letters demanding I file my tax return. Screw you, Revenue Canada! Old Dominion says I don't have to file!

Seriously, Old Dominion. If you had income from a source in Canada, whether you're resident there or not, they really do want you to file a return. In fact, they insist. Some of us have rental, pension, employment, or some other source of income, even though we don't live there. But I might try your note first.

[sly_wolf 199]

Taxes becomes a big topic this time of year. I still have questions since it will be my first time to file a US tax return. I have read quite a bit through the IRS site and other sources and I am still unsure about certain points. I also was quite surprised when I read through the IRS topics on residency for tax purposes.

I am still not even clear on which income number to report for US taxes since Quebec is different from the rest of the country. Should I report the Quebec number or the Revenue Canada number? I feel I am dealing with 3 different countries at a time.

Sly

[trailmix 77]

Taxes becomes a big topic this time of year. I still have questions since it will be my first time to file a US tax return. I have read quite a bit through the IRS site and other sources and I am still unsure about certain points. I also was quite surprised when I read through the IRS topics on residency for tax purposes.

I am still not even clear on which income number to report for US taxes since Quebec is different from the rest of the country. Should I report the Quebec number or the Revenue Canada number? I feel I am dealing with 3 different countries at a time.

Sly

Quebec number?

Anyway it's definately the federal amount, I could look at my U.S. returns and tell you which number - but I don't want to look at taxes

[Krikit 1,164]

Taxes becomes a big topic this time of year. I still have questions since it will be my first time to file a US tax return. I have read quite a bit through the IRS site and other sources and I am still unsure about certain points. I also was quite surprised when I read through the IRS topics on residency for tax purposes.

I am still not even clear on which income number to report for US taxes since Quebec is different from the rest of the country. Should I report the Quebec number or the Revenue Canada number? I feel I am dealing with 3 different countries at a time.

Sly

Quebec number?

Anyway it's definately the federal amount, I could look at my U.S. returns and tell you which number - but I don't want to look at taxes

I get uptight just seeing the threads on taxes!

[trailmix 77]

Taxes becomes a big topic this time of year. I still have questions since it will be my first time to file a US tax return. I have read quite a bit through the IRS site and other sources and I am still unsure about certain points. I also was quite surprised when I read through the IRS topics on residency for tax purposes.

I am still not even clear on which income number to report for US taxes since Quebec is different from the rest of the country. Should I report the Quebec number or the Revenue Canada number? I feel I am dealing with 3 different countries at a time.

Sly

Quebec number?

Anyway it's definately the federal amount, I could look at my U.S. returns and tell you which number - but I don't want to look at taxes

I get uptight just seeing the threads on taxes!

Yeah, we need a separate forum for taxes!!

[sly_wolf 199]

Taxes becomes a big topic this time of year. I still have questions since it will be my first time to file a US tax return. I have read quite a bit through the IRS site and other sources and I am still unsure about certain points. I also was quite surprised when I read through the IRS topics on residency for tax purposes.

I am still not even clear on which income number to report for US taxes since Quebec is different from the rest of the country. Should I report the Quebec number or the Revenue Canada number? I feel I am dealing with 3 different countries at a time.

Sly

Quebec number?

Anyway it's definately the federal amount, I could look at my U.S. returns and tell you which number - but I don't want to look at taxes

Yes, my gross income is different on the Quebec form versus the T4. Quebec always has to be different.

Sly

Taxes becomes a big topic this time of year. I still have questions since it will be my first time to file a US tax return. I have read quite a bit through the IRS site and other sources and I am still unsure about certain points. I also was quite surprised when I read through the IRS topics on residency for tax purposes.

I am still not even clear on which income number to report for US taxes since Quebec is different from the rest of the country. Should I report the Quebec number or the Revenue Canada number? I feel I am dealing with 3 different countries at a time.

Sly

Quebec number?

Anyway it's definately the federal amount, I could look at my U.S. returns and tell you which number - but I don't want to look at taxes

I get uptight just seeing the threads on taxes!

Yeah, we need a separate forum for taxes!!

I agree. This would be great.

Sly

[Udella&Wiz 325]

It would be a wonderful addition to have a Canadian Tax forum thread pinned at the top along with the Unemployment one - gawd knows every year we'r all so pathetically confusedidid ;P