confused about which year to do what

[pegbert64 0]

Sorry, I meant for this to go into Zyggy's tax thread.... can someone move it there for me?!!---------------------------------------------------------------------------------------------------------------------

Hi Zyggy

Thank you so much for helping everyone with your expertise!

I did send you a pm, but maybe this will be helpful for everyone.

1) The last taxes I filed in Canada were for year 2005.

2) Came to the US on extended vacation in April 2006. Met Mr. Right and never went back!

3) Called Canadian tax accountant to inquire about what to do for 2006 taxes, and he said that since I had zero income and was not living in Canada, I did not have to file anything.

4) Married May 2007, filed for AOS July 2007

5) Husband included me on his US taxes for year 2007, since I had EAD and SS# before the end of 2007

6) GC granted June 2008.

7) cashed out Canadian RRSPs August 2008 (25% withheld).

OK, so now I'm trying to finish everything up with RevCan. We do not see ourselves moving back to Canada in the foreseeable future, so I'm definitely a US resident. As far as I understand (according to the nice lady at RevCan with whom I spoke on the phone), I need to:

a ) file a return for year 2006 with zero income

b ) file a return for year 2007 as my "exit return", using the date that my AOS application was accepted as the date I ceased to be a Canadian resident (July 2007). On this return, I would claim the remaining HBP amount (approx $1300) as "other income", but again zero as employment income (I have no income from anywhere in the world)

c ) the income from the cashed out RRSP goes on our 2008 joint US tax return as foreign income. QUESTION: do I need to file a tax return with RevCan for year 2008, due to the cashing out of these RRSPs? Is there any way to get back any of that 25% that they withheld?

Am I on track so far? Also, which name/address do I use on each of the returns? For 2006, do I use my previous name and Canadian address... and then switch to my married name and US address for 2007? Or do I use my current name and address on ALL returns?

And finally.... when I spoke with the lady at RevCan, she asked when did I leave Canada? I told her I the dates that I left, got married, applied for AOS, and got the GC. She said that the date I was granted the GC would be the date I "left" Canada. I don't think this is correct, since when my application for AOS was accepted, I became a "conditional resident" in the US, and was thereafter approved. Also, since I was included on my husband's 2007 US tax return as a US resident, I can't be a resident of two countries at once, right?! Therefore, I think that the date I left Canada ought to be in 2007. Correct?

Thanks again for posting all this info and answering our questions!!

Edited January 28, 2009 by pegbert64