The IRS/CRA Income Tax Thread

[zyggy 9]

I'm trying to get up to date with all the Canadian taxes. I called CRA to find out what they needed, and they said that I must file a return for 2006, even if I had no income. 2007 will become my "exit" return, as that is the year that I filed for US Permanent Residency.

My question is this: on the 2006 T-1 Identification box, do I use my CURRENT (married) name and current US address, or do I use my PREVIOUS name and former Canadian address?

Thank you.

You would use your name on 12/31/06. Use your current address.

Edited February 9, 2009 by zyggy

[SimoFati 0]

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.

I did the same thing back in 2006..filed as single ..my husband didn t have ssn ...I am going to get money back if I amend it..but I am not sure if I should do that now?;(

[pegbert64 0]

I'm trying to get up to date with all the Canadian taxes. I called CRA to find out what they needed, and they said that I must file a return for 2006, even if I had no income. 2007 will become my "exit" return, as that is the year that I filed for US Permanent Residency.

My question is this: on the 2006 T-1 Identification box, do I use my CURRENT (married) name and current US address, or do I use my PREVIOUS name and former Canadian address?

Thank you.

You would use your name on 12/31/06. Use your current address.

Thank you. I have one more question..... the last one, I think! I'm filing Section 217 for 2008 to get back some of the 25% withheld when I cashed out my RRSPs in 2008. I've got the non-resident T1 filled out already. Obviously, I use my current married name and US address. Where it says "marital status", I put "married". But then what do I put under the spouse information, since my husband is the US citizen, never lived or worked in Canada, does not have a SIN# or any other ties to Canada (except me, of course!) Do I just leave that box blank? If it makes a difference, I have no income from anywhere in 2008, except for the RRSP cashout.

Thanks again!

[zyggy 9]

I'm trying to get up to date with all the Canadian taxes. I called CRA to find out what they needed, and they said that I must file a return for 2006, even if I had no income. 2007 will become my "exit" return, as that is the year that I filed for US Permanent Residency.

My question is this: on the 2006 T-1 Identification box, do I use my CURRENT (married) name and current US address, or do I use my PREVIOUS name and former Canadian address?

Thank you.

You would use your name on 12/31/06. Use your current address.

Thank you. I have one more question..... the last one, I think! I'm filing Section 217 for 2008 to get back some of the 25% withheld when I cashed out my RRSPs in 2008. I've got the non-resident T1 filled out already. Obviously, I use my current married name and US address. Where it says "marital status", I put "married". But then what do I put under the spouse information, since my husband is the US citizen, never lived or worked in Canada, does not have a SIN# or any other ties to Canada (except me, of course!) Do I just leave that box blank? If it makes a difference, I have no income from anywhere in 2008, except for the RRSP cashout.

Thanks again!

Typing in US Resident would be appropriate

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.

I did the same thing back in 2006..filed as single ..my husband didn t have ssn ...I am going to get money back if I amend it..but I am not sure if I should do that now?;(

You can file an amendment for 2006... Go ahead and do it and get they money you deserve.

[SimoFati 0]

I'm trying to get up to date with all the Canadian taxes. I called CRA to find out what they needed, and they said that I must file a return for 2006, even if I had no income. 2007 will become my "exit" return, as that is the year that I filed for US Permanent Residency.

My question is this: on the 2006 T-1 Identification box, do I use my CURRENT (married) name and current US address, or do I use my PREVIOUS name and former Canadian address?

Thank you.

You would use your name on 12/31/06. Use your current address.

Thank you. I have one more question..... the last one, I think! I'm filing Section 217 for 2008 to get back some of the 25% withheld when I cashed out my RRSPs in 2008. I've got the non-resident T1 filled out already. Obviously, I use my current married name and US address. Where it says "marital status", I put "married". But then what do I put under the spouse information, since my husband is the US citizen, never lived or worked in Canada, does not have a SIN# or any other ties to Canada (except me, of course!) Do I just leave that box blank? If it makes a difference, I have no income from anywhere in 2008, except for the RRSP cashout.

Thanks again!

Typing in US Resident would be appropriate

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.

I did the same thing back in 2006..filed as single ..my husband didn t have ssn ...I am going to get money back if I amend it..but I am not sure if I should do that now?;(

You can file an amendment for 2006... Go ahead and do it and get they money you deserve.

you don't think they are going to give me hard time for that?!

thank you so much.

[zyggy 9]

I'm trying to get up to date with all the Canadian taxes. I called CRA to find out what they needed, and they said that I must file a return for 2006, even if I had no income. 2007 will become my "exit" return, as that is the year that I filed for US Permanent Residency.

My question is this: on the 2006 T-1 Identification box, do I use my CURRENT (married) name and current US address, or do I use my PREVIOUS name and former Canadian address?

Thank you.

You would use your name on 12/31/06. Use your current address.

Thank you. I have one more question..... the last one, I think! I'm filing Section 217 for 2008 to get back some of the 25% withheld when I cashed out my RRSPs in 2008. I've got the non-resident T1 filled out already. Obviously, I use my current married name and US address. Where it says "marital status", I put "married". But then what do I put under the spouse information, since my husband is the US citizen, never lived or worked in Canada, does not have a SIN# or any other ties to Canada (except me, of course!) Do I just leave that box blank? If it makes a difference, I have no income from anywhere in 2008, except for the RRSP cashout.

Thanks again!

Typing in US Resident would be appropriate

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.

I did the same thing back in 2006..filed as single ..my husband didn t have ssn ...I am going to get money back if I amend it..but I am not sure if I should do that now?;(

You can file an amendment for 2006... Go ahead and do it and get they money you deserve.

you don't think they are going to give me hard time for that?!

thank you so much.

No... if you are eligible for it, there's nothing to be afraid of...

[daisylynn 0]

I do have another question. We left Canada in May 2008 but my dh was still paid by his Canadian company for 9 weeks after that. How do we go about filling the papers out for that?

[Caladan 19]

Hey Mr. Zyggy (or others):

1) Last year C. filed the leaving Canada form and was treated as a non-resident for tax purposes. This tax year, he worked in Canada and has job-related taxes. He is a resident of the U.S. and we will file the U.S. taxes appropriately. My question is what we have to do with Canadian taxes: do we file taxes as a non-resident? He owns no property in Canada and has spent ~ 2 months in Canada in 2008 on work business.

2) Where does one go to find a U.S./Canadian exchange rate calculator to report the income earned in Canada appropriately in USD?

Thanks.

[SimoFati 0]

No... if you are eligible for it, there's nothing to be afraid of...

thank you so much..i will file an amended tax return then.

[foxmon 0]

Ziggy:

One quick question.

I have become a non-resident of Canada in 07 and I have received two NZ-4 slips (1 for bank interest and 1 for dividend).

I tried to file my tax using Taxact but I couldn't find the appropriate field to enter the two slips. There is an option for foreign interest but when I entered Canada it didn't prompt me to the next section. I am wondering is this a software issue or did I not fill in the right section?

Thanks in advance!

[zyggy 9]

Hey Mr. Zyggy (or others):

1) Last year C. filed the leaving Canada form and was treated as a non-resident for tax purposes. This tax year, he worked in Canada and has job-related taxes. He is a resident of the U.S. and we will file the U.S. taxes appropriately. My question is what we have to do with Canadian taxes: do we file taxes as a non-resident? He owns no property in Canada and has spent ~ 2 months in Canada in 2008 on work business.

2) Where does one go to find a U.S./Canadian exchange rate calculator to report the income earned in Canada appropriately in USD?

Thanks.

1) He would file a Canadian non-resident return.

2) The Federal Reserve has historical data on daily exchange rates. They also calculate a average exchange rate for the year. You have a choice. You can calculate the amount in USD for each date you were paid, or you can take the total amount you were paid and use the average yearly exchange rate.

[zyggy 9]

I do have another question. We left Canada in May 2008 but my dh was still paid by his Canadian company for 9 weeks after that. How do we go about filling the papers out for that?

If the non-resident taxes were not taken out, the excess pay is treated as being paid on the date you left Canada.

Ziggy:

One quick question.

I have become a non-resident of Canada in 07 and I have received two NZ-4 slips (1 for bank interest and 1 for dividend).

I tried to file my tax using Taxact but I couldn't find the appropriate field to enter the two slips. There is an option for foreign interest but when I entered Canada it didn't prompt me to the next section. I am wondering is this a software issue or did I not fill in the right section?

Thanks in advance!

If the 25% non-resident tax was taken out, you do not need to file anything to CRA.

[Caladan 19]

Hey Mr. Zyggy (or others):

1) Last year C. filed the leaving Canada form and was treated as a non-resident for tax purposes. This tax year, he worked in Canada and has job-related taxes. He is a resident of the U.S. and we will file the U.S. taxes appropriately. My question is what we have to do with Canadian taxes: do we file taxes as a non-resident? He owns no property in Canada and has spent ~ 2 months in Canada in 2008 on work business.

2) Where does one go to find a U.S./Canadian exchange rate calculator to report the income earned in Canada appropriately in USD?

Thanks.

1) He would file a Canadian non-resident return.

2) The Federal Reserve has historical data on daily exchange rates. They also calculate a average exchange rate for the year. You have a choice. You can calculate the amount in USD for each date you were paid, or you can take the total amount you were paid and use the average yearly exchange rate.

Oh, thanks. That helps a ton, as he was working in Canada *after* the Canadian dollar took a nose-dive. I'd rather not pay extra taxes on money not earned.

[foxmon 0]

Ziggy:

One quick question.

I have become a non-resident of Canada in 07 and I have received two NZ-4 slips (1 for bank interest and 1 for dividend).

I tried to file my tax using Taxact but I couldn't find the appropriate field to enter the two slips. There is an option for foreign interest but when I entered Canada it didn't prompt me to the next section. I am wondering is this a software issue or did I not fill in the right section?

Thanks in advance!

If the 25% non-resident tax was taken out, you do not need to file anything to CRA.

Ziggy, thanks for the quick reply. I guess I didn't ask my question clearly. I was wondering which form will I have to use to report my Canadian income to IRS. The software I used (Taxact) didn't have a place for me to enter these income. Does other software like turbotax have a form for these income or do I have to file it manually with paper form?

I am ok on the Canadian side since CRA no longer withhold tax from interest income(Bill C38) and they have already withheld 15% tax from my dividend income.

Thanks again!

Edited February 16, 2009 by foxmon

[daisylynn 0]

Thank you again for being so kind to help all of us out. I have asked a couple of questions and gotten your answers. I have also looked through the other threads and tried to find other answers to my questions. It seems the more I read, the more confused I get. So, I want to put it the way I am interpreting it. Can you tell me if I'm on the right track?

brief summary of situation...

~dh is cnd, I am US citizen-both moved from Canada to US on May 31, 2008.

~He still received 9 checks (1 per week for 9 weeks) after we moved (it was a deal he made with his company in return for him doing a 'voluntary' layoff)-they were directly deposited into his Canadian bank account

~He received a check for his RRSP a couple months after we moved

~He started working here in the US in September 2008

My understanding...

~We file a leaving Canada form (what exactly is that? Is it in with the general forms? Is it completely separate?)

~We put May 31 as the date we left, but we still include all the money from the remaining 9 checks he received even after he left

~We fill in his Canadian income for 2008 on our US forms, but then file a 2555 for the foreign tax credit

~We fill out form 8891 for the RRSP that dh got (it was a very small amount)

~We can fill out the info for Canada on a program but have to print it off and send it all in to the international tax place

Ok, so here are the remaining questions...

1-Can I file turbo tax in the US? Or do I need to do it on the paper forms?

2-For the rrsp, we got 2 things for taxes--one notes a contribution amount and the period covered as Mar-Dec 08. What is this for? And why is it for a time period that we aren't even in Canada? The other is an NR4 and shows the gross income and the NR tax withheld. Where does this go? On the 8891?

3-Which form exactly are we suppose to be filling out for the US taxes?

Thank you so much for all your help!!