The IRS/CRA Income Tax Thread

[LiLMermaid 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?

Quicktax is very simple to use. You can actually go to their website and do your Canadian taxes right online. Its cheap and easy. Your hubby can't claim you for 2009 since you were not yet married.

[trailmix 77]

I always use Ufile - it's only $15.95 for a single return and it's easy to use. If your income was under 20,000 for the year (on line 150) it's free!

[TimandJoyce 1]

I always use Ufile - it's only $15.95 for a single return and it's easy to use. If your income was under 20,000 for the year (on line 150) it's free!

Thanks!! I don't have time to look through it all but I'll save it until later. Unless of course it's better to do mine the old fashioned way and send a copy of the marriage license with it?

[The_Dude 1,142]

I loathe doing taxes, and that is when they are quick and simple. Now there is a degree of complication added to it, taxes seem so painful. I guess i've got 19 pages to read before I start asking questions in the thread. Don't wanna be "That n00b"

[beans 7]

I loathe doing taxes, and that is when they are quick and simple. Now there is a degree of complication added to it, taxes seem so painful. I guess i've got 19 pages to read before I start asking questions in the thread. Don't wanna be "That n00b"

lol good luck i tried reading them all then got confused frustrated gave up and say screw it i'm asking anyways besides its a whole new tax year now

[mike777 0]

Hello, I have a question related to taxes but not related to the other posts here and I'm hoping someone can help.

My wife is a Can citizen and I'm in the process of sponsoring her for CR1 in the states. I'm USC. Shes employed by a Canadian Company and when she gets her perm residency, she plans on commuting back and forth to Canada for work (as she can having a CR!).

Health Insurance. Ontarios website says that She'll lose her OHIP since her residency is not in Ontario once she moves, now I'm guessing part of the Canadas high taxes are because all Ontarians are covered for health insurance, well once she moves into the states, if shes uneligible to receive free health care through OHIP, then shouldn't her income taxes be less on her paycheck? I don't know anything about her paycheck, I haven't looked at the stub. Or does Ontario just fund OHIP through higher sales taxes?

She said she pays her employer for dental, so I asked her to email her employer to ask if she can pay into a health care plan, but if shes going to get nailed still for taxes cuz of OHIP, then I wouldn't want her to pay into a health insurance plan.

Thanks.

[SapphireDreams 71]

lol good luck i tried reading them all then got confused frustrated gave up and say screw it i'm asking anyways besides its a whole new tax year now

I tried reading it too. It gets to a point where Zyggy just tells everyone to re-read the thread because he's already addressed their question... even though it seemed like a new question to me!

[Sam and Ben 2]

Thank you, Udella&Wiz.

I always use Ufile - it's only $15.95 for a single return and it's easy to use. If your income was under 20,000 for the year (on line 150) it's free!

That's good to know, Trailmix, thank you. I'll definitely look into that, as it sounds perfect for me.

[Sam and Ben 2]

Wouldn't let me edit my last post, but I just had a quick question:

The fact that I haven't canceled my few credit cards in Canada (none of them have anything owing), is that going to make it necessary for me to file with Canada next year? That's the only tie I can see being still active to Canada, as I won't be getting any income or anything else from there in 2010.

[trailmix 77]

Wouldn't let me edit my last post, but I just had a quick question:

The fact that I haven't canceled my few credit cards in Canada (none of them have anything owing), is that going to make it necessary for me to file with Canada next year? That's the only tie I can see being still active to Canada, as I won't be getting any income or anything else from there in 2010.

No you definately won't have to

[trailmix 77]

Hello, I have a question related to taxes but not related to the other posts here and I'm hoping someone can help.

My wife is a Can citizen and I'm in the process of sponsoring her for CR1 in the states. I'm USC. Shes employed by a Canadian Company and when she gets her perm residency, she plans on commuting back and forth to Canada for work (as she can having a CR!).

Health Insurance. Ontarios website says that She'll lose her OHIP since her residency is not in Ontario once she moves, now I'm guessing part of the Canadas high taxes are because all Ontarians are covered for health insurance, well once she moves into the states, if shes uneligible to receive free health care through OHIP, then shouldn't her income taxes be less on her paycheck? I don't know anything about her paycheck, I haven't looked at the stub. Or does Ontario just fund OHIP through higher sales taxes?

She said she pays her employer for dental, so I asked her to email her employer to ask if she can pay into a health care plan, but if shes going to get nailed still for taxes cuz of OHIP, then I wouldn't want her to pay into a health insurance plan.

Thanks.

Yes, Canadian taxes are relatively high, in part, because we have universal health care. However, it is a system where we all support each other, not an individual system like the U.S. - therefore you can't opt out of the tax paying part.

[minnew 4]

I hope Zyggy is still answering these questions!

I have a question that I have been trying to figure out all evening! H&R Block "free"version paid for by Military One Source is definitely not as good as TurboTax. I think I will stick with TurboTax! I am a stumped on where to report my Canadian Pension on the software. It was a lump-sum distribution and not from an RRSP or RRIF, from an employer matching plan.( or is an RRIF an employer plan?) I was taxed at 20% before receiving the distribution and was still a canadian resident at the time, its under 6K before taxes. Can I take the 20% paid as a credit?

Moved BACK to Canada in May 2008 from living in the USA on F-1 OPT status and resided in Canada until September 2009. Moved to the USA on K-1 visa and became a GC holder as of 12/14/2009. So I qualify as a resident alien and am filing MFJ. From fiddling around with TurboTax it seems I qualify for the foreign earned income exclusion (my wages). If I didn't qualify for the exclusion we would have owed! But I am very unsure about the pension. I received my T-4 already for the distribution.

Anyone have any advice?

[coldwatersurf 5]

i know this has been answered on the thread but i have spent days looking over this thread and have finally sent the thread to parents from both side of my family and one of them is stumped. My dad is in canada and can file my canadian tax but he is also trying to understand how to file US tax since my husband's mom just gave up (and has talked to 4 other accountants who refuses to touch my taxes). I only made $6K in US. urgh this is so frustrating and it sucks no accountant can help me with this...

Anyways... please correct me if im wrong..... I lived in Canada until April 24, 2009 and entered US with K3 Visa (I didnt get my green card until this month). I worked in Canada until April 2009. I worked in US from August 2009 - December 2009 and I also collected EI.

Canada Tax Return

* my dad is filing me as part resident and filing my T4 and EI tax as normal

US Tax

* filing as resident for tax purposes only and filing form 1116 for the taxes I paid in canada along with form 1040.....

Edited March 19, 2010 by borderdriver

[L_n_O 3]

our accountant does US and Canada taxes. We filed with him last year....

Do you want his contact info?

[JerryA 1]

Tax question for 2010:

Me US Citizen. Wife Canadian. Married August 2010. I-130 applied for and pending. Wife lived and worked in Canada for Canadian company/ employer the whole of 2010.

I am filing our US taxes as "Married filing jointly" and claiming wife as exemption. Filling out Form W-7 for her ITIN.

Trying to apply for foreign earned income exclusion. After reading the instructions for 2555EZ again, I find the bonafide residence test kinda confusing....!

She lived in Canada continuosly since 2002, Canadian citizen, Tax home country = Canada all these years, Employer = Canadian.

Continues to be a bonafide residence of Canada in 2010....!

Is the physical presence test (330 days in 2010) necessary too to qualify as a bonafide resident for US tax purposes for 2010?

She visited me in the US a few times in 2010 - making her days in Canada in 2010 = 310 days total.

Can we still apply for foreign earned income exclusion???

Thank you.