The IRS/CRA Income Tax Thread

[Inky 1,110]

: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???

I wouldn't want to think what the IRS would do.. lol I would never risk it they sound pretty vicious!

My friend is scared shes going to owe too because of her EI. She will find out in a couple of days since they just filed.

[coldwatersurf 5]

since my experience last year was so horrible, i am thinking of risking it! LOL! why does IRS need to know how much income i make outside of US?????!!!!! GRRRRRRRR..... there is only one HR block that I found that is 1 hr away from me that knew how to file foreign income.

anyone "forget" to file their foreign income??? i just wanna know what kind of punishment im going to get.

[jken 2]

ok Guys...I need some clarification and answers....I've read and read and the more I do, the more confused I become. I p.o.e'd., in Dec., of 2010; I worked in Canada right up until end of Nov ember of 2010 - So..I understand I need to file an exit return in Canada...But...we married in December of 2010, so my husband USC, is gearing up to file his taxes and would advice and what is the best route for us to take.

We file as married/together - understood....but then what....Is my Canadian income going to hurt as far as us having to owe the irs?...By filling out the 2555 (believe it is-form to exempt foreign income) does this mean we do not have to claim my Canadian income here as i will have to in Canada? Is there a difference between exemption from foreign income and foreign income exclusion?

As far as my status goes in Usa - do i file as non resident alien? I do have my ssn but have only recently filed for aos.

Can't thank you enough in advance for help.

[zyggy 9]

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?

Yes

Or will we have to file married separate and then Idaho and Nebraska state taxes?

You can file a separate non-resident state return for Nebraska. Keep Idaho joint.

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???

You don't need to file anything in Canada. HRSDC already took the 25% non-resident tax out. You must claim the EI income, but you can take the 25% non-resident tax as a Foreign Tax Credit using Form 1116.

: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???

CRA and IRS do talk to each other. If you don't claim your income and the IRS finds out some day, you will get charged the tax you would owe, plus penalties and interest from April 15 2011.

[zyggy 9]

ok Guys...I need some clarification and answers....I've read and read and the more I do, the more confused I become. I p.o.e'd., in Dec., of 2010; I worked in Canada right up until end of Nov ember of 2010 - So..I understand I need to file an exit return in Canada...But...we married in December of 2010, so my husband USC, is gearing up to file his taxes and would advice and what is the best route for us to take.

We file as married/together - understood....but then what....Is my Canadian income going to hurt as far as us having to owe the irs?...By filling out the 2555 (believe it is-form to exempt foreign income) does this mean we do not have to claim my Canadian income here as i will have to in Canada? Is there a difference between exemption from foreign income and foreign income exclusion?

As far as my status goes in Usa - do i file as non resident alien? I do have my ssn but have only recently filed for aos.

Can't thank you enough in advance for help.

Your Canadian income will cost slightly more than if you weren't there at all, but the increases presonal exemptions usually is more beneficial. Even though you are a non-resident alien for tax purposes, your spouse can elect to treat you as a resident alien in 2010 by claiming that option in writing. You would use Form 2555 to exclude your foreign income earned in Canada. However, you must claim EI income you earned in the US as regular income and take the 25% non-resident tax as a Foreign Tax Credit.

[jken 2]

Thanks very much -appreciate the time you took. :-)

[jken 2]

Does anyone know anything about having to be in the US FOR 31 days in order for my usc husband to file as married together with me???? I arrived in the US on Dec3 2010...

thanksssssssss

[Love_Young 0]

Hi there!

I am in a bit of a different situation than most here. Well I am currently being sponsored to Canada by my husband but waiting approval.

I have not found much help on Canadian immigration forums about tax purposes other than regarding just the CRA and that is why I have come here as it is a bit more specific to the US side of things. This year will be our second year filing with the CRA. I am the US citizen and am turning 21 soon. I haven't ever filed a tax return as at the time it was my understanding that you didn't need to if you made under a certain amount. I only made $70 for a temporary position 2 years ago so didn't file a return. I have been "visiting" with my husband in Canada for 2 years now in March. I have not earned any income but he has earned Canadian income.

Anyway here are my questions:

1. I was wondering if I should file for a tax return this year seeing as I am now married?
   
2. If I need to what would be the best way to go about this seeing as I don't have any foreign or US income and living in Canada?
   
3. Should I file jointly or separately?
   
4. Does he need a temporary tax number and does it take long to get?
   
5. And would I be punished for not filing a tax return yet?

Sorry for so many questions but I am hoping to reach some relief here by having these questions answered. We would be eternally grateful if you could.

As you all know, filing for one country is confusing enough as it is but add another country it is definitely confusing and especially when you haven't ever filed a return to begin with.

Thanks in advance if you can help us.

[zyggy 9]

Does anyone know anything about having to be in the US FOR 31 days in order for my usc husband to file as married together with me???? I arrived in the US on Dec3 2010...

thanksssssssss

You USC husband can elect to treat you as a resident alien for tax purposes at any time no matter how long you have been married or where you live. It just has to be done in writing.

[zyggy 9]

Hi there!

I am in a bit of a different situation than most here. Well I am currently being sponsored to Canada by my husband but waiting approval.

I have not found much help on Canadian immigration forums about tax purposes other than regarding just the CRA and that is why I have come here as it is a bit more specific to the US side of things. This year will be our second year filing with the CRA. I am the US citizen and am turning 21 soon. I haven't ever filed a tax return as at the time it was my understanding that you didn't need to if you made under a certain amount. I only made $70 for a temporary position 2 years ago so didn't file a return. I have been "visiting" with my husband in Canada for 2 years now in March. I have not earned any income but he has earned Canadian income.

Anyway here are my questions:

1. I was wondering if I should file for a tax return this year seeing as I am now married?
2. If I need to what would be the best way to go about this seeing as I don't have any foreign or US income and living in Canada?
3. Should I file jointly or separately?
4. Does he need a temporary tax number and does it take long to get?
5. And would I be punished for not filing a tax return yet?

Sorry for so many questions but I am hoping to reach some relief here by having these questions answered. We would be eternally grateful if you could.

As you all know, filing for one country is confusing enough as it is but add another country it is definitely confusing and especially when you haven't ever filed a return to begin with.

Thanks in advance if you can help us.

As a US CItizen living outside the US, A US Citizen must report their worldwide income. However, since you personally earn less than the amount required to file, you are not required to file a 1040 with the IRS. If you make less than the amount needed to file, you do not have to file no matter where that income is earned. As he is not a resident alien or a US Citizen, you are not required to report his income to the IRS.

In future, if you do earn more than the filing threshold, in your case, I would file as married filing separate and exclude the foreign income. You would be required to get an ITIN number for your husband. It does take some time and you would be required to go to an agent to do the paperwork for you or visit an IRS office in Canada. The IRS website has addresses for both.

[jken 2]

You USC husband can elect to treat you as a resident alien for tax purposes at any time no matter how long you have been married or where you live. It just has to be done in writing.

you're the best...thanks much..i'll let the dude at h n r bloc know!

[FireKari 4]

There should be a step by step wiki on how to do the taxes.

Just saying.

[zyggy 9]

There should be a step by step wiki on how to do the taxes.

Just saying.

Except these taxes aren't so easy, especially not in a one size fits all wiki.... If they we're easy, no one would be asking me questions.

Zyg

[FireKari 4]

No but it seems that a lot of people have the same/similar situations

[zyggy 9]

No but it seems that a lot of people have the same/similar situations

Maybe so, but I take the view that if something isn't cookie cutter, people can take something and either take it incorrectly or think it applies to them when it really doesn't and never ask. For taxes, I would much rather hear the individual case and then answer it.