The IRS/CRA Income Tax Thread

[zyggy 9]

You are dealing with two separate issues...

Issue 1 is can you file as married filing joint with a non-resident alien. The answer is yes, but you must declare your intention to treat your non-resident alien spouse as a resident alien for tax purposes in writing. You won't be able to efile your return.

Issue 2 is once you opt to treat your non-resident alien spouse as a resident alien, is she able to take the foreign income tax exclusion. That's where the bonafide presence test comes into play. If you meet that test, then you can use the foriegn income exclusion.

Be sure you do your taxes both ways - joint and seperately. While you do get the bonus of the higher exclusions, they way they calculate the tax is as follows - Tax you would owe with both your incomes minus tax owed on her income alone. If you jump a tax bracket, your tax will be more than if they figured it on yours alone. (i.e. calculate the tax after the foreign income is excluded)

Zyg

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.

[Krikit 1,164]

Welcome back, Zyggy! It's nice to see you again.

[L_n_O 3]

I started doing my US taxes with Turbotax last night... was so happy to almost be done when I discovered a small piece of paper about last years taxes regarding OVERPAYMENT when we PAID someone about $1500 to do our joint-CDN-US taxes.

So I was all excited to almost be done and be able to do it myself til that messed it all up!!

So now I'm super confused and emailed a turbotax professional (for a measly $40) to see what the heck is wrong with my VA state taxes now....

Ugh.

[Krikit 1,164]

when we PAID someone about $1500 to do our joint-CDN-US taxes.

[L_n_O 3]

My tax situation has been a bit of a mess last 2 yrs.

Worked in the Cdn Emb (file US taxes), simultaneously also a Regular US employer (US taxes) & then now a tax-exempt international org.

[Krikit 1,164]

Yeah, but $1500? I have to file both US and Canadian and I've never paid anywhere close to that.

[L_n_O 3]

Yeah, but $1500? I have to file both US and Canadian and I've never paid anywhere close to that.

Working at the Emb created some kind of nonsense situation.

Derekkj uses him too.... Think they'll be using them for only one more year..

I'm still waiting for Turbotax to answer my questions from yesterday!!!

[FireKari 4]

For the Canada taxes:

1- Are these all the forms I need located here?

http://www.cra-arc.gc.ca/formspubs/t1gnrl/nnrsdnts-eng.html

2- I just fill out for non-resident, yes?

For US taxes for husband:

Next week I should have my SSN card so we have an appt on March 1 to do his taxes [joint filing].

1- I saw something on here about some tax exclusion thing when prooving bonafide marriage, can anyone explain furthur?

Is this all I need or did I miss anything?

I feel SOOOOOO lost at all of this, I swear taxes are WORSE then figuring out immigration.

[FireKari 4]

Here is the CRA guide for Emigrant taxes [leaving Canada].

http://www.cra-arc.gc.ca/E/pub/tg/t4056/t4056-e.html

[jken 2]

Okay well I think I have a few thngs settled in my brain about filing taxes this year. I left Canada in Dec 0f 2010 and I worked right up until end of November, so I will be filing an...exit tax return. Question: My daughter 18 years in March of 2010, lived with me...so I can claim her equal to dependant I believe. how does that jive with me being married in Dec of 2010 to my usc, fiance....? Do I just indicate married and thats it or...?

Also since we were married in Dec of 2010, my now usc husband - we will file married-jointly...and use forms 2555 and 1116 to exclue foreign income...?

Any part of this make sense or am I way off here!

Thanks Everyone!

[Inky 1,110]

My husband and I file state tax for Idaho even tho we live in Nebraska. ( hes in the military and his home state is Idaho )

We will file the same way this year again married joint Idaho state.

But next years taxes, I will have been working in Nebraska for a while(hopefully if I don't lose my newly acquired job lol)

-- Will we still be able to file Joint State taxes for Idaho? Or will we have to file married separate and then Idaho and Nebraska state taxes?

[L_n_O 3]

I efiled with Turbotax in the US. Whoooo Whooop!!!

[coldwatersurf 5]

I hope someone can help me out. This will be my 2nd tax year in US and I thought I was done with CRA but I guess I made 4000 in EI in 2010. I already filed my 2010 US tax a wk ago. Does that mean I need to ammend it? I just received my T4E. Last year was such a nightmare for me. After dealing w/ 2 accountants that didn't know anything and thank god for visa journey, I was able to do it by myself and didn't have to pay anything like the 2 accountants told me. I actually did it perfectly and IRS thought I did it wrong then 2 months after I filed my 2009 taxes, IRS changed their mind and gave us the total money I calculated the first time.lol.

So anyways... Back to my orig question... What do I do???

[Inky 1,110]

I hope someone can help me out. This will be my 2nd tax year in US and I thought I was done with CRA but I guess I made 4000 in EI in 2010. I already filed my 2010 US tax a wk ago. Does that mean I need to ammend it? I just received my T4E. Last year was such a nightmare for me. After dealing w/ 2 accountants that didn't know anything and thank god for visa journey, I was able to do it by myself and didn't have to pay anything like the 2 accountants told me. I actually did it perfectly and IRS thought I did it wrong then 2 months after I filed my 2009 taxes, IRS changed their mind and gave us the total money I calculated the first time.lol.

So anyways... Back to my orig question... What do I do???

Yep you need to have included the T4E stuff! my friend had to do all that again this year as well and she had to wait for her T4E to do her taxes at HR block.

[coldwatersurf 5]

:crying: :crying: this is lame... our tax return is already so low since i worked a bunch of part time jobs and my employer didnt take enough withholding tax. i really hope i dont have to pay IRS....

lets say i dont report my foreign income??? then what happens???