The IRS/CRA Income Tax Thread

[one_day_at_a_time 0]

My bad, forget my suggestion to refile an amended 2007 return - that was bad info. I had to look back at my return and you DO have to declare the unpaid amount on your Departure Return on line 130 (other amount) and make a note "HBP repayment".

You should have claimed the HBP/RSP withdrawal as income on your 2007 tax return - I would suggest that you will have to send in an amended 2007 return.

Does anyone know about HBP? I withdrew funds for the HBP in 2007. I have not repaid any yet, since you have two years to start doing that. However, I understand now that I need to claim that money as income, since I no longer qualify for that program. The CRA site says I have to claim it on the return of the year in which I withdrew it, but other reading suggests that I claim it on my departure return (which will be 2008). Which is it?? So far I have entered it on line 129 of my departure return, even through the T4rsp is from 2007. It is nice becasue it is pretty much the only income I am claiming for the entire year. If I had to go back and add it to 2007 it would have way bigger implications, I think. I am so not au fait with this stuff.

However, I am still confused about whether I was a deemed resident for 2008 (I think so. I still have a house, po box, bank accounts, cell phone.....and I spent a good chunk of the year in Canada). If I am a deemed resident am I allowed to cash out of the HBP plan? I, of course, cannot get through on the International Tax 1-800 number, since I am a major procrastinator and it is constantly busy starting at 6 am.

ALSO, does anyone know if I can use Quicktax for my departure return? The departure return is just a general T1 return with a departure date included, right? I am confused because although Quicktax has kind of figured out that I am now a non-resident (It asks for worldwide income, etc) it does not explicitly ask for the departure date like it does right on the first page of the T1 form.

Hmmm. I don't think I should have done that because at the time I was a resident and still participating in the program. I added it the return as an HBP withdrawal, but obviously I was not taxed on it since I was participating in HPB. Now I need them to know that I am no longer participating. SO maybe NOW it is appropriate to file an ammended return?

I have not filed my taxes yet because I still haven't been able to contact that international tax office—it is busy non stop! Hopefully today I will find a human to talk to.

[raymaga 25]

Here's my (our, actually) situation:

My 21-year-old daughter (Canadian citizen, came to US with K-2 visa, is now a U.S. PR, can apply for citizenship in November, 2010) is a full-time college student in Bellingham, WA. She wants to go back to Canada for the summer to stay with her Dad and work for approximately 2 1/2 months before she comes back to WA state to finish college in September.

She has NEVER filed a Canadian tax return because she came to the U.S. when she was 17 and had never had any income in Canada. She has filed U.S. tax returns every year since she got here.

After she returns to the U.S. after working in Canada, what will she be required to do with regards to tax returns?

What does she need to do with regards to CRA after returning to the U.S. because she may or may not ever have any Canadian income again in the future?

Thanks for any info.

[raymaga 25]

Here's my (our, actually) situation:

My 21-year-old daughter (Canadian citizen, came to US with K-2 visa, is now a U.S. PR, can apply for citizenship in November, 2010) is a full-time college student in Bellingham, WA. She wants to go back to Canada for the summer to stay with her Dad and work for approximately 2 1/2 months before she comes back to WA state to finish college in September.

She has NEVER filed a Canadian tax return because she came to the U.S. when she was 17 and had never had any income in Canada. She has filed U.S. tax returns every year since she got here.

After she returns to the U.S. after working in Canada, what will she be required to do with regards to tax returns?

What does she need to do with regards to CRA after returning to the U.S. because she may or may not ever have any Canadian income again in the future?

Thanks for any info.

Forgot to mention... my daughter will likely only earn $1,000 to $2,000 during the summer.

[trailmix 77]

Well I would recommend that if she pays any tax at all that she definately file a Canadian tax return - they are really easy to do, because her income is so low she can efile using ufile.ca for free - and also, because her income will be low, she will probably get all the tax she paid back as a refund.

As for the U.S. return, that's where it gets more complicated - i'll let someone else explain that one!

[cmls 0]

bump

[Dreamtime 0]

I am a US citizen and my husband is Canadian. He became a permanent resident of the US in 2008 and lived in the US in 2008 so that's his tax home for 2008. He is employed by a company in Canada and my FIL is doing my husband's Canadian taxes with his tax professionals. He wants me to send him my 1040 and W2's for 2008, but I don't know why Canada would need it since I am not a resident of Canada and didn't work in Canada. Does Canada need my SSN and income information for 2008 so hubby can file his taxes as a non resident?

(Before you ask, he didn't yet file his leaving Canada -- I think that's what they're doing now but FIL is really not forthcoming with details and keeps refusing to give me the name of the firm who is handling this so I can call and just ask them.)

We also have to amend our US taxes since I filed married jointly but didn't include his worldwide income (since FIL employs him and doesn't send us the paystubs and it's pulling TEETH getting the info from him.)

Thank you!

[Rustbelt 0]

I am a US citizen and my husband is Canadian. He became a permanent resident of the US in 2008 and lived in the US in 2008 so that's his tax home for 2008. He is employed by a company in Canada and my FIL is doing my husband's Canadian taxes with his tax professionals. He wants me to send him my 1040 and W2's for 2008, but I don't know why Canada would need it since I am not a resident of Canada and didn't work in Canada. Does Canada need my SSN and income information for 2008 so hubby can file his taxes as a non resident?

(Before you ask, he didn't yet file his leaving Canada -- I think that's what they're doing now but FIL is really not forthcoming with details and keeps refusing to give me the name of the firm who is handling this so I can call and just ask them.)

We also have to amend our US taxes since I filed married jointly but didn't include his worldwide income (since FIL employs him and doesn't send us the paystubs and it's pulling TEETH getting the info from him.)

Thank you!

In general, if you have Canadian sourced income (such as from a Canadian employer) you have to file a Canadian tax return, even if you are living in the US.

[trailmix 77]

I am a US citizen and my husband is Canadian. He became a permanent resident of the US in 2008 and lived in the US in 2008 so that's his tax home for 2008. He is employed by a company in Canada and my FIL is doing my husband's Canadian taxes with his tax professionals. He wants me to send him my 1040 and W2's for 2008, but I don't know why Canada would need it since I am not a resident of Canada and didn't work in Canada. Does Canada need my SSN and income information for 2008 so hubby can file his taxes as a non resident?

(Before you ask, he didn't yet file his leaving Canada -- I think that's what they're doing now but FIL is really not forthcoming with details and keeps refusing to give me the name of the firm who is handling this so I can call and just ask them.)

We also have to amend our US taxes since I filed married jointly but didn't include his worldwide income (since FIL employs him and doesn't send us the paystubs and it's pulling TEETH getting the info from him.)

Thank you!

No, he doesn't need your info, you are right, Canada does not care about your income.

[bootslacky 1]

Hi there,

Turbotax isn't being very helpful with helping me file as married filing jointy with my nonresident spouse. Immigration is still underway (should have the interview soon), she (Canadian) worked solely in Canada for 2009, and I stuck to working in the USA for all of 2009.

1. Will we be able to file as married filing jointly?

Does anyone have any hints with how to do this on Turbotax? I might just have to go to H&R Block or something this year to ensure it all gets done right.

I found some great advice on the forum:

"1. Get w-2's in mail

2. File as "married filing jointly" using 1040 form * we both sign docs. ( This will have to be on paper, no e-filing)

3. Copy of Marriage certificate to show I am legally married to my husband

4. A letter will be written to the IRS asking that my "none alien spouse" be treated as a "resident alien" for tax purposes* we both sign this letter.

5. Also send a w-7 form (which he fills out and signs) to ask for an ITIN #.

6. Make copies of what I am sending IRS."

But I am not certain whether I have done this right. I guess I could just try to do it all myself, manually filling out the forms. I only read the first 4 pages of this thread, so maybe there is some more information I could use. We've got to do the married filing jointly or I'm going to end up owing some money.

[beans 7]

Giving this thread a bump and probably repeating a question or three..

1. I moved to the US in August 2009 and have yet to be employed in the US. My conditional PR status was approved in 2010. Do I have to file a US tax return for 2009?

2. How the hell do you file taxes abroad? I'm not going to lie I never paid much attention to this aspect of immigration. Can you NETFILE or no?

3. If you cannot NETFILE where do you get the forms to do it manually? Which will make me sad because I always did my taxes on my own but through the joy of free tax programs lol

[TimandJoyce 1]

Giving this thread a bump and probably repeating a question or three..

1. I moved to the US in August 2009 and have yet to be employed in the US. My conditional PR status was approved in 2010. Do I have to file a US tax return for 2009?

2. How the hell do you file taxes abroad? I'm not going to lie I never paid much attention to this aspect of immigration. Can you NETFILE or no?

3. If you cannot NETFILE where do you get the forms to do it manually? Which will make me sad because I always did my taxes on my own but through the joy of free tax programs lol

good questions, Beans!! I have the same ones, basically!!

I have heard you can't netfile. rats!! Makes it soooo easy!! Plus, last year I have the sale of my house. Although I don't pay taxes because I lived IN the house I sold, I was told I put it on line such and such, then again on line such and such...I was told this last August when I left! LOL ummmm can't remember what she said, and was too busy to write it down!

I figure I'm going to call CRA. I saw a number online, and I called it a couple of months ago, and got a person right away!! Didn't know how to start the conversation, I was waiting for recordings... I have so many questions for those people they better grab a cup of coffee and hold all other calls!!

[Udella&Wiz 325]

Giving this thread a bump and probably repeating a question or three..

1. I moved to the US in August 2009 and have yet to be employed in the US. My conditional PR status was approved in 2010. Do I have to file a US tax return for 2009?

2. How the hell do you file taxes abroad? I'm not going to lie I never paid much attention to this aspect of immigration. Can you NETFILE or no?

3. If you cannot NETFILE where do you get the forms to do it manually? Which will make me sad because I always did my taxes on my own but through the joy of free tax programs lol

I have the same scenario as you - moved 1 year (2007)and didn't work in the US for the remainder of that year. Here is what we did that first year.

1. We filed jointly in the US for 2007 - my Cdn income was waived because it was taxed previously in Canada. We used Turbo Tax for that and it worked out easily. We got a nice chucnk back because my husband could claim me that year. I also file my usual Cdn return.

2 You file through the mail. I used a Cdn tax program - just had to print it at the end instead of netfiling

3. go to the CRA website and look up the basic tax return (whatever applies to you)and print it off.....if you have your tax slips already you can do your Cdn return now. Even by paper, it isn't that hard....but see my note above about using a tax program and just printing at the end

Edited January 19, 2010 by Udella&Wiz

[Sam and Ben 2]

This will be the first time I've ever done my own taxes. Can anyone point me in the direction of the easiest program to use for a beginner with a 'leaving Canada' file?

My situation is basic, outside of the emigrating at the very end of December: basic income with deductions, savings account with minimal interest made, etc. Can anyone point me in the best direction to start?

I know hubby uses Turbotax for his own taxes... but since we weren't married in 2009, he can't claim me, correct? I simply file for Canada and he files for the US?

[Udella&Wiz 325]

This will be the first time I've ever done my own taxes. Can anyone point me in the direction of the easiest program to use for a beginner with a 'leaving Canada' file?

My situation is basic, outside of the emigrating at the very end of December: basic income with deductions, savings account with minimal interest made, etc. Can anyone point me in the best direction to start? Unless you get a tax slip from the bank for the interest you made - you don't report it anywhere on your taxes. It would have to be a siginificant amount of interest for the gov't to want to tax you

I know hubby uses Turbotax for his own taxes... but since we weren't married in 2009, he can't claim me, correct? I simply file for Canada and he files for the US? Yes - sounds right for your situation

[ZansGirl 0]

I was wondering if Ziggy is still anwering these questions?