The IRS/CRA Income Tax Thread

[childress_london 3]

I married my husband in August and of course he is still in Canada, has never been to the U.S. (and he is an Iranian citizen living in Canada.) I am trying to file Married Separately, but it seems I need a SSN for him, which of course he doesn't have. What do I do?

BTW he is a student and not currently working.

Edited February 1, 2009 by childress_london

[chukskinboots 0]

Hello, during 2008 my girlfriend lived with me in the US as a student. I filed my taxes using turbo tax and was able to claim her as an unrelated dependent, nearly doubling my return. Unfortunately, I just found out that her parents are also claiming her as a dependent in Canada. My question is, should I immediately make corrections and refile, or should I wait for the government to send me something? Does the US and Canada share that information? Thanks in advance.

[childress_london 3]

I married my husband in August and of course he is still in Canada, has never been to the U.S. (and he is an Iranian citizen living in Canada.) I am trying to file Married Separately, but it seems I need a SSN for him, which of course he doesn't have. What do I do?

BTW he is a student and not currently working.

NV, I found out that I have to file as single, since he does not have a SSN.

[hheaven67 2]

I married my husband in August and of course he is still in Canada, has never been to the U.S. (and he is an Iranian citizen living in Canada.) I am trying to file Married Separately, but it seems I need a SSN for him, which of course he doesn't have. What do I do?

BTW he is a student and not currently working.

NV, I found out that I have to file as single, since he does not have a SSN.

My son does not have a SSN & is dependent upon my husband therefore, he needs an ITIN (a simple form that needs to be completed and sent in with the Income Tax Return):

Who needs an ITIN?

IRS issues ITINs to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs. A non-resident alien individual not eligible for a SSN, who is required to file a U.S. tax return only to claim a refund of tax under the provisions of a U.S. tax treaty, needs an ITIN.

Examples of individuals who need ITINs include:

Non-resident alien filing a U.S. tax return and not eligible for a SSN

U.S. resident alien (based on days present in the United States) filing a U.S. tax return and not eligible for a SSN

Dependent or spouse of a U.S. citizen/resident alien

Dependent or spouse of a non-resident alien visa holder

For those of you needing more info, here's the link: http://www.irs.gov/individuals/article/0,,...87,00.html#itin

Edited February 1, 2009 by hheaven67

[Texanadian 10]

Be sure to convert to US dollars. The exchange rate for 2008 is 1.8545. If tax is taken out, be sure to take a foriegn tax credit using form 1116.

This exchange rate needs to be settled. Using the Federal Reserve website for year 2008, I see 1.066 being the exchange rate.

http://www.federalreserve.gov/releases/g5a...ent/default.htm

Where exactly are you getting 1.8545 from?

[zyggy 9]

Be sure to convert to US dollars. The exchange rate for 2008 is 1.8545. If tax is taken out, be sure to take a foriegn tax credit using form 1116.

This exchange rate needs to be settled. Using the Federal Reserve website for year 2008, I see 1.066 being the exchange rate.

http://www.federalreserve.gov/releases/g5a...ent/default.htm

Where exactly are you getting 1.8545 from?

Read the question.. The OP was refering to British Pounds... I gave 1.066 for the CAD in an earlier post.

[zyggy 9]

I married my husband in August and of course he is still in Canada, has never been to the U.S. (and he is an Iranian citizen living in Canada.) I am trying to file Married Separately, but it seems I need a SSN for him, which of course he doesn't have. What do I do?

BTW he is a student and not currently working.

NV, I found out that I have to file as single, since he does not have a SSN.

You may not file as single.. period. Your best tax consideration would likely be to opt to have your husband treated as a tax resident for the entire tax year, file as married filing joint and exclude his income using Form 2555. Also do your taxes as married filing separate as well. You will have to file for an ITIN for your husband.

[zyggy 9]

Hello, during 2008 my girlfriend lived with me in the US as a student. I filed my taxes using turbo tax and was able to claim her as an unrelated dependent, nearly doubling my return. Unfortunately, I just found out that her parents are also claiming her as a dependent in Canada. My question is, should I immediately make corrections and refile, or should I wait for the government to send me something? Does the US and Canada share that information? Thanks in advance.

If you provided more than 50% of her support, lived with you for the ENTIRE tax year, and you can document that and she made no more than $3,500 in income, you may claim her. With her as a student, I question if you truly provided more than 50% of her support. That means everything (food, tuition, shelter, etc.).

If you don't believe you will be able to substantiate that claim, I suggest you file an amendment once you get your refund and pay the money back.

Edited February 2, 2009 by zyggy

[childress_london 3]

I married my husband in August and of course he is still in Canada, has never been to the U.S. (and he is an Iranian citizen living in Canada.) I am trying to file Married Separately, but it seems I need a SSN for him, which of course he doesn't have. What do I do?

BTW he is a student and not currently working.

NV, I found out that I have to file as single, since he does not have a SSN.

You may not file as single.. period. Your best tax consideration would likely be to opt to have your husband treated as a tax resident for the entire tax year, file as married filing joint and exclude his income using Form 2555. Also do your taxes as married filing separate as well. You will have to file for an ITIN for your husband.

H&R Block told me to file single. Now I'm thoroughly confused. I already submitted my taxes.

[Accty 0]

By popular demand, I am beginning a thread to share everyone's eventual cross border tax issues so it can be kept in one central place and can be continually used as a resource in this and coming years. So feel free to post and share the love and information.

Zyg

Hello,

I recently received RFE and in process of re-doing I-864.

I really need your advice...

"my father in law files I-864 as a joint sponsor."

"he makes about $100,000 of income with house hold size of 3"

"use of Asset is not required"

"the most recent tax information is sufficient."

Are those all correct?

because, he filed this originally as the petitioner... and RFE says income requirement was not met...

Im so confused.... since he is my joint sponsor, on another I-846 of my wife's, can she put the most recent tax year, as well?

Thank you,

[Allie 5]

Hi Ziggy

I have a couple points I would like you to clear for us before we have our taxes done this yr.

I've been here in the U.S since 07 and collect a monthly pension which is deposited in my bank in Canada.

Last yr. my first tax filing here Jackson Hewitt did our taxes and when I pointed out about my pension earnings in Canada they said it didn't have to be reported here in the U.S. as pension payments would be tax exempt and Canada already taxed it.

My question is. Was this correct, I'd like to know for sure I don't want the IRS chasing after me saying we failed to report foriegn income.

My 2nd question: Do I just file a normal Canadian tax return this yr or do I have to notify them again for a section 217 return. Last yr. I filed under section 217.

Also this yr I have income earnings here in the U.S do they go on my Canadian return with my pension earnings

Thanks

Allie

[melusine 5]

Some update on my case....

I called the IRS + the state + quebec province about it.

Basically....

Welfare is NOT TAXABLE if based on the need (and not on a service you gave for example).

Emptying a REER (Quebec thingie retirement) is taxable and you can deduct the taxes you paid. (8a on the 1040 (federal)) and exclude Canadian taxes you paid with the form 1116 (and line 47 of the 1040) .. or just 47 if the taxes are less than 300$ (600$ if married).

Quebec : you write down only your status the day you moved and make all calculation with the amount of day you were in the country. (so no husband, married status etc)

I still have to get in touch with Canada/federal

[zyggy 9]

I married my husband in August and of course he is still in Canada, has never been to the U.S. (and he is an Iranian citizen living in Canada.) I am trying to file Married Separately, but it seems I need a SSN for him, which of course he doesn't have. What do I do?

BTW he is a student and not currently working.

NV, I found out that I have to file as single, since he does not have a SSN.

You may not file as single.. period. Your best tax consideration would likely be to opt to have your husband treated as a tax resident for the entire tax year, file as married filing joint and exclude his income using Form 2555. Also do your taxes as married filing separate as well. You will have to file for an ITIN for your husband.

H&R Block told me to file single. Now I'm thoroughly confused. I already submitted my taxes.

They were wrong.... go back and get them to file an amendment free of charge. Their guarantee that they will get you the best refund, I guarantee you that they didn't do that.

Edited February 4, 2009 by zyggy

[zyggy 9]

Hi Ziggy

I have a couple points I would like you to clear for us before we have our taxes done this yr.

I've been here in the U.S since 07 and collect a monthly pension which is deposited in my bank in Canada.

Last yr. my first tax filing here Jackson Hewitt did our taxes and when I pointed out about my pension earnings in Canada they said it didn't have to be reported here in the U.S. as pension payments would be tax exempt and Canada already taxed it.

My question is. Was this correct, I'd like to know for sure I don't want the IRS chasing after me saying we failed to report foriegn income.

My 2nd question: Do I just file a normal Canadian tax return this yr or do I have to notify them again for a section 217 return. Last yr. I filed under section 217.

Also this yr I have income earnings here in the U.S do they go on my Canadian return with my pension earnings

Thanks

Allie

THe gentlemen at JH was most incorrect. Pension payments are definitely NOT tax exempt with the exception of SS payments. If your pension payment is CPP, then it may be. I need more information.

If you had the 25% non resident tax taken out, then you are not required to file with CRA. If you believe your worldwide income will place you in a tax bracket below 25%, by all means file the Section 217 and get a portion of that 25% back.

Edited February 4, 2009 by zyggy

[Allie 5]

Hi Ziggy

I have a couple points I would like you to clear for us before we have our taxes done this yr.

I've been here in the U.S since 07 and collect a monthly pension which is deposited in my bank in Canada.

Last yr. my first tax filing here Jackson Hewitt did our taxes and when I pointed out about my pension earnings in Canada they said it didn't have to be reported here in the U.S. as pension payments would be tax exempt and Canada already taxed it.

My question is. Was this correct, I'd like to know for sure I don't want the IRS chasing after me saying we failed to report foriegn income.

My 2nd question: Do I just file a normal Canadian tax return this yr or do I have to notify them again for a section 217 return. Last yr. I filed under section 217.

Also this yr I have income earnings here in the U.S do they go on my Canadian return with my pension earnings

Thanks

Allie

THe gentlemen at JH was most incorrect. Pension payments are definitely NOT tax exempt with the exception of SS payments. If your pension payment is CPP, then it may be. I need more information.

If you had the 25% non resident tax taken out, then you are not required to file with CRA. If you believe your worldwide income will place you in a tax bracket below 25%, by all means file the Section 217 and get a portion of that 25% back.

The pension is a company retirement pension. When I moved here I called Mellon ( the pension administrator) to inform them I was now living in the U.S. and inquired whether they would be taking the 25% non-residence tax and they said they would be taking a rate of 15%.

Does this now mean I no longer file a Canadian Tax return ? Also how do I now go about reporting to the IRS the pension payments from Canada that weren't put in last yrs. U.S. return?

Thanks for yourassistance Ziggy

Allie