another Canada/US tax question. pls help im confused!!!

[coldwatersurf 5]

after reading many threads and googling online and talking to EI. im still confused.

i understand the tax process if you've been collecting EI and worked in the US. but im totally confused when it gets to doing your taxes b/c 1) i worked in canada until april 2009 2) collected EI starting August 2009 3) started working in US on August 2009.

1. Does this mean i have to file canadian and US taxes b/c i was working in Canada for part of 2009?

2. but, i thought EI was already taking 25% for tax purposes (?)

3. I spoke to Donna @ EI and she said we will not receive our T4E until around end of February. My hubby wants to do his taxes asap. is it beneficial to file jointly with your spouse?

4. I sent Canada Revenue a letter some time in June that I moved to US b/c i was receiving letters about my GST. so... do i still need to make sure that Canada Revenue doesnt have me as a canadian resident anymore? does this matter?

im so confused. if you've been through this, please post your experience or msg me.

[Udella&Wiz 325]

after reading many threads and googling online and talking to EI. im still confused.

i understand the tax process if you've been collecting EI and worked in the US. but im totally confused when it gets to doing your taxes b/c 1) i worked in canada until april 2009 2) collected EI starting August 2009 3) started working in US on August 2009.

1. Does this mean i have to file canadian and US taxes b/c i was working in Canada for part of 2009? yes - you had Cdn income, therefore file a Cdn return, on your US return you file ALL your world income - Cdn plus US - that's just how it works. There is something called a section 217 which you can file with your Cdn taxes and which may get you some or all of the taxes you paid in Canada back - because you will pay taxes on your Cdn income on your US return possible - that seems to be the way you avoid being taxed twice - by getting the Cdn gov't to refund the taxes...if it works

2. but, i thought EI was already taking 25% for tax purposes (?) They are/ did....you still need to report it on your Cdn return and your US return regardless

3. I spoke to Donna @ EI and she said we will not receive our T4E until around end of February. My hubby wants to do his taxes asap. is it beneficial to file jointly with your spouse? You mean for the US return I assume? Seems like it to me, more tax breaks...we get a nicer chunk back

4. I sent Canada Revenue a letter some time in June that I moved to US b/c i was receiving letters about my GST. so... do i still need to make sure that Canada Revenue doesnt have me as a canadian resident anymore? does this matter? Matters hugely, you get taxed at different rates depending on whether they consider you a resident for tax purposes. You should read some of last years tax thread and read up on residency on the CRA website

im so confused. if you've been through this, please post your experience or msg me.

Edited January 5, 2010 by Udella&Wiz

[coldwatersurf 5]

thank you for answering this.

so just so i am clear....... I can file all my income in US. i do not have to hire a canadian accountant and an american accountant? lol... cuz i was getting stressed out i thought i had to hire 2 ppl to do my taxes.

[coldwatersurf 5]

ok ok i am more confused with the taxes now that i went on CRA and reading a publication for emigrants of canada 2009 and spoke to IRS and the person i was talking to was grumpy.

please tell me if i'm right.

1. i file my canadian taxes w/ section 217 as i collected EI & earned canadian income for 2009???

2. i file my us taxes w/ form 1116???

i really dont want to take this to H&R block as i live in a small town and there aren't a lot of immigrants here. Im afraid H&R block will just screw up.

can someone post the thread about US/Canada tax??? i cant seem to find it.

Edited January 5, 2010 by borderdriver

[redmen99 1]

ok ok i am more confused with the taxes now that i went on CRA and reading a publication for emigrants of canada 2009 and spoke to IRS and the person i was talking to was grumpy.

please tell me if i'm right.

1. i file my canadian taxes w/ section 217 as i collected EI & earned canadian income for 2009???

2. i file my us taxes w/ form 1116???

i really dont want to take this to H&R block as i live in a small town and there aren't a lot of immigrants here. Im afraid H&R block will just screw up.

can someone post the thread about US/Canada tax??? i cant seem to find it.

I would not use H&R Block at any time, but especially if immigration and another country is involved. Personally, I would hire a Certified Tax Accountant to help you with these issues. I will be doing the same when my hubby is finally able to move down here. It may cost you more, but tax accountants are a bit more knowledgeable then someone who took a quick tax preparation course at H&R Block or one of those places. IMO.

[coldwatersurf 5]

I would not use H&R Block at any time, but especially if immigration and another country is involved. Personally, I would hire a Certified Tax Accountant to help you with these issues. I will be doing the same when my hubby is finally able to move down here. It may cost you more, but tax accountants are a bit more knowledgeable then someone who took a quick tax preparation course at H&R Block or one of those places. IMO.

I called around and finally found a certified tax accountant who is experienced with international taxes and have some canadian clients. they said their service "should" be around or under $500

[Malrothien 6]

That isn't that bad of a price. I worked for an accounting firm for the past year and our minimum charge for a 'simple' tax return was $200.

[coldwatersurf 5]

oh dear god. what if i owe taxes...........

[Udella&Wiz 325]

My USC husband did ours with Turbo tax each year...it allowed for International income and the whole 9 yards....we didn't use an accountant and found everything worked out fine.

I do find US taxes more complicated then Cdn, maybe because I'm just not familiar?

[Udella&Wiz 325]

ok ok i am more confused with the taxes now that i went on CRA and reading a publication for emigrants of canada 2009 and spoke to IRS and the person i was talking to was grumpy.

please tell me if i'm right.

1. i file my canadian taxes w/ section 217 as i collected EI & earned canadian income for 2009??? No - your filing a 217 because you want the Cdn tax back - not because you earned Cdn income2. i file my us taxes w/ form 1116??? Yes - I got 'som'e of the tax back, just not all

i really dont want to take this to H&R block as i live in a small town and there aren't a lot of immigrants here. Im afraid H&R block will just screw up.

can someone post the thread about US/Canada tax??? i cant seem to find it.

[coldwatersurf 5]

ok now that makes sense. is there any other forms i am forgetting to file with...?

I spoke to the accountant at my last canadian employment and he said that Canada recognizes you by domicile and US recognizes by citizenship (or i guess status in my case). So since he only knows Canada taxes (not US), as far as canada taxes go, i only file @ the country that i lived in longer. he told me to file my canadian taxes in US as international income. maybe this is partly true? but ill just file like i previously stated in last thread.

Edited January 5, 2010 by borderdriver

[Krikit 1,164]

ok now that makes sense. is there any other forms i am forgetting to file with...?

I spoke to the accountant at my last canadian employment and he said that Canada recognizes you by domicile and US recognizes by citizenship (or i guess status in my case). So since he only knows Canada taxes (not US), as far as canada taxes go, i only file @ the country that i lived in longer. he told me to file my canadian taxes in US as international income. maybe this is partly true? but ill just file like i previously stated in last thread.

If you received Canadian income you have to file Canadian taxes no matter where in the world you live. If you don't have an income from Canada you only have to file in the US.

[americana2009 0]

ok ok i am more confused with the taxes now that i went on CRA and reading a publication for emigrants of canada 2009 and spoke to IRS and the person i was talking to was grumpy.

please tell me if i'm right.

1. i file my canadian taxes w/ section 217 as i collected EI & earned canadian income for 2009???

2. i file my us taxes w/ form 1116???

i really dont want to take this to H&R block as i live in a small town and there aren't a lot of immigrants here. Im afraid H&R block will just screw up.

can someone post the thread about US/Canada tax??? i cant seem to find it.

There is a tax place in Niagara falls, Canada that is excellent in doing can/us taxes. They have been doing mine for the past 7 yr. This year we are moving to the u.s.(I am an American Citizen currently living in Canada for the past 15 so I've been doing taxes for both countries for that amt of time) Anyway I talked to them about moving and they said they will do everything through Parcel mail. If you are interested I can give you the Name and number. When we move that is the way I am going to do it because doing taxes in both countries can get sticky.

[Krikit 1,164]

Halton Financial Group does mine. They are familiar with cross-border taxation and are licensed in both Canada and the US.

[coldwatersurf 5]

i may just have to send this to an accountant. but after reading many articles and publications these are the articles that really helped me understand (plus your responses of course!)

a law office explaining US/Canada taxes: http://www.americanlaw.com/ustxperm.html

IRS publication for US tax guide 2008 for Aliens http://www.irs.gov/pub/irs-pdf/p519.pdf

CCRA emigrants & Income tax 2009 http://www.cra-arc.gc.ca/E/pub/tg/t4056/t4056-09e.pdf

hope it helps someone else! grab a coffee, its a "great" read. lol