The IRS/CRA Income Tax Thread

[Sprailenes 47]

Yea I could really care less, I haven't lived in Canada, have nothing to claim. They can suck an egg. I hate anything that deals with numbers and I miss my accountant.

[daisylynn 0]

I tried to edit my post and it timed out. I was going to add this:

Just for clarification, under Less Common Income, I have two numbers. Foreign Earned Income is a negative number that represents her total Canadian paycheck prior to moving to the States, -X. Under Miscellaneous Income, I have the total amount she received from Canadian sources, which were her job prior to moving here, and EI after moving here. That number is X + Y. In other words, I'm excluding X, and getting a tax credit on Y. X will be part of the number on your 1040, line 7 and part of the number on 1116, line 3e. X + Y also ends up on 1116, line 3d.

Hopefully that doesn't confuse you more

Oh my gosh!! You have NO idea how much this has helped! I was seriously ready to go to a professional to get these done. You have clarified so much! Thank you!!

I do have a question though. I'm not seeing where much information was put on 1116. I know you said you only had to put in 3. Are there questions that are asked so that will be put in? And you said to check the top box but you said 'other reportable income'. The top box says 'income not reported' but the bottom one said 'other reportable'. I just want to clarify which one I"m suppose to check.

And do I add the UCCB and his income from Canada, convert to US dollars and use that on the 2555 as a total amount, or do I need to separate that somewhere? We still got the UCCB after we left Canada, but they put it all together on the form they sent us. Is that ok?

And then I put the amount from his RRSP that we cashed out (25% taken out) on the 1116? I'm not seeing where I put that. Is there a place that asks for the tax withheld on that?

Ok, so that was more than one question, sorry. I'm totally excited that I might actually be able to do this without taking it in! Thank you so much for such detailed instructions. Those were way better than turbo tax gave! LOL

[July09Bride 1]

I didn't live in Canada at all this year do I have to still fill this ####### out that they sent me?

I mean I'm just ready to photocopy everything and write in big black block letters: YOU DO IT!

What about your pink crayon???

[Sprailenes 47]

I did. I used it... the latest crayola colour: "Tickle me PINK"

[July09Bride 1]

Love it!!!

[Caladan 19]

Two quick questions:

1) C. filed as a deemed non-resident of Canada last year. This year, he had some income in Canada though he is still a U.S. Resident. What Canadian tax form do we use? The same one as last year? (C. is disagreeing with me about this.)

[Caladan 19]

Oop, question #2: C. worked in Canada. He moved here in 2007, was a resident of the U.S. and Connecticut for all of 2008. This means form 1116, not 2555, right, for his foreign income?

[Southern_Canadian 0]

Hey,

I've been reading this thread looking for some answers but I just can't seem to find the answer to my questions. If you have answered these questions before, I apologize. But maybe someone could copy and paste the answers? LOL

My husband, US citizen, filed for his taxes separately. I will be getting my SSN any day. When I get it, I file file for my taxes separately as well. Since I am filing separately wiill I have to claim my husbands income? Also, I only have one copy of my Canadian T-4, will a photocopy of my T-4 be acceptable?

When doing my Canadian taxes, I recently told that I have to claim my husbands US income. Is that true?!

That's all. Thanks for the help

[Eric Pree 0]

USC, got married to my Canadian spouse in Oct '08, filing MFJ with her ~$4k of canadian income on the return as a W-2, with 1116 for the ~$250 tax credit.

TurboTax wants to add a $600 "Recovery rebate credit" which is the added stimulus check amount since I changed from single to married.

My question is, I know you didn't get a stimulus check last year if your return had an ITIN on it, does the "Recovery rebate credit" have the same gotcha? She's using an ITIN since she doesn't have a EAD/SSN yet.

Love this thread btw, saved me a lot of grief so far!

[JillA 2]

OK so my US taxes are done.... my Canadian taxes were always done by my Dad's accountant. So this year I sent him my T4/T4E and advised that I needed to file as a non-resident of Canada.... then today he called me and said why do you want to file as a non-resident, as long as you still have a bank account or something you don't have to.... I know he's wrong and I wish I never sent him all my stuff, I should have gone to a professional in Canada when I go home next week.... Although I don't yet have my green card so can I just file as normal this time and next year when GC received file as a non-resident? I told him I already advised the Canadian Govt I moved, I don't want to do anything wrong....

[naviomelo 0]

Anyone?

[SonoranSongbird 3]

When doing my Canadian taxes, I recently told that I have to claim my husbands US income. Is that true?!

I'm not sure if this helps, but when my husband spoke with someone at CRA recently and said that he would need to provide my income on his final tax return (I am the USC wife). My income won't be taxable in Canada, but if my husband gets any kind of benefits from Canada, my income counts toward household income in determining eligibility (which does not make a whole lot of sense to me to be perfectly honest).

[SonoranSongbird 3]

Okay, I just want to say thank you to Zyggy. It took me a while to get through this thread, but I think you have answered my questions about whether we can exclude hubby's income from before he moved down even if we elect to treat him as a resident alien for tax purposes.

Well, at least you've answered all the questions I have now---when I start filling out the forms, I may have more! Nonetheless, you've demystified the process quite a bit and have been a MAJOR help.

One question I do have though: My husband transferred his life savings through a series of wire transfers. We were told that it was reported to the IRS, not because it is taxable income (heh, it isn't income), but because they keep track of large transfers of money to guard against money laundering and/or funding terrorism). The question is what if anything do we have to report and/or document to make sure the transfers are not treated as something other than transfers of an immigrant's savings?

[ajay416 0]

I've gone through this thread but I'm still not confident on a few things, hopefully someone can point me in the right direction.

I came to the US on a K1 in November 2008. Up till then, I worked for a company part-time in Canada and was also self-employed. Currently filed for AOS and have an interview date in May of this year. I would really like to utilize my student tax credits in Canada to minimize my taxable income. I have a few questions...

1) Can I qualify to file jointly and exclude my foreign income? From what I read in publication 519, it said I can't use any tax treaty benefits since I would be considered a non resident alien filing jointly (may have interpreted it wrong).

2) Could I use form 2555 to exclude my foreign income?

3) If I can exclude my income, Do I need to file in Canada first, before we file here?

4) Finally, will I need to fill out any other forms?

If anyone could help, It would be greatly appreciated.

[zyggy 9]

Okay, I just want to say thank you to Zyggy. It took me a while to get through this thread, but I think you have answered my questions about whether we can exclude hubby's income from before he moved down even if we elect to treat him as a resident alien for tax purposes.

Well, at least you've answered all the questions I have now---when I start filling out the forms, I may have more! Nonetheless, you've demystified the process quite a bit and have been a MAJOR help.

One question I do have though: My husband transferred his life savings through a series of wire transfers. We were told that it was reported to the IRS, not because it is taxable income (heh, it isn't income), but because they keep track of large transfers of money to guard against money laundering and/or funding terrorism). The question is what if anything do we have to report and/or document to make sure the transfers are not treated as something other than transfers of an immigrant's savings?

You do not need to report anything to the IRS. The transfers were not reported to the IRS, they were reported to the Financial Crimes Enforcement Network. Completely different agency.