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

[SapphireDreams 71]

I need to figure this out.

I worked in Canada from January-May 2009 and then in the US from August-December 2009.

I left Canada June 6th, 2009.

I'm hoping I don't owe anyone anything!

[coldwatersurf 5]

First I want to make sure if Canada knows i dont live there anymore and that they got my letter stating that i moved.

this is what i read on the canada tax guide:

Do you need help determining your residency

status?

If you left Canada or are planning to leave Canada and

need help determining your residency status, complete

Form NR73, and send it to us as soon as possible. We will give

you our opinion of your residency status based on the

information you provide on Form NR73. You will find

Form NR73 in the centre of this guide.

Edited January 6, 2010 by borderdriver

[Malrothien 6]

Don't bother with the NR7. When you fill out your Canadian taxes, there is a section on Page 1 that asks when you left the country.

[coldwatersurf 5]

OK! that makes it so much easier. lol

[coldwatersurf 5]

question:

does it matter if I file american taxes first or canadian first? and if they are a month apart?

[Rustbelt 0]

Doesn't really matter. You'll need to do them both at around the same time so you know how much "foreign tax credit" to claim, amongst other things, but it's a minefield for the unwary. Some major pointers:

1. As a Canadian resident, you can offset any taxes you pay to the U.S. against what you owe to Canada.

2. As a US resident, you can offset any taxes you pay to Canada against what you owe to the U.S.

3. You will pro-rate your taxes for each country if you have been a part-year resident in both countries (i.e. the year you move, you will almost certainly be a part-year resident in both the U.S. and Canada)

4. If you get any tax refund from the U.S. (or Canada), this will be deducted from your "foreign tax credit". Translation: If you paid $5,000 in taxes to the U.S., but it turned out to be an overpayment and you got a refund from the IRS of $1,000, you will only be able to offset US $4,000 against whatever taxes you may owe to Canada.

5. RRSP/401k/IRA contributions can get tricky. You *may* end up paying taxes on these contributions in the country they are not "home" to. (i.e. you might have to pay taxes on any 401k contributions you made while still a tax resident in Canada). Just keep it in mind.

I really do strongly recommend that you use a professional for this first year. It can be really complicated. We've been dealing with cross-border tax issues for 5 years and it doesn't get any easier . . .

- Steve's wife

Edited January 6, 2010 by Steve Treible

[coldwatersurf 5]

I think im just going to cough up $500 and use a Canadian who's a certified american accountant out here. Turns out the accounting firm I called is the same where my Boss' wife works and my boss kept telling me to talk to his wife. Turns out i talked to his wife's boss who happens to be canadian. lol! yeah really small town eh. Well, my boss' wife wont even help me with my tax as a side job. she says it gets so sticky she doesnt want to touch it. better leave it with her boss who's a canadian . lol!

[Krikit 1,164]

I think im just going to cough up $500 and use a Canadian who's a certified american accountant out here. Turns out the accounting firm I called is the same where my Boss' wife works and my boss kept telling me to talk to his wife. Turns out i talked to his wife's boss who happens to be canadian. lol! yeah really small town eh. Well, my boss' wife wont even help me with my tax as a side job. she says it gets so sticky she doesnt want to touch it. better leave it with her boss who's a canadian . lol!

HFG charges hundreds of dollars less.

[SapphireDreams 71]

HFG charges hundreds of dollars less.

HFG? Can you elaborate?

I need to find someone. My taxes are not going to be very easy this year.

[Krikit 1,164]

HFG? Can you elaborate?

I need to find someone. My taxes are not going to be very easy this year.

Here it is. Post #14

[Udella&Wiz 325]

I need to figure this out.

I worked in Canada from January-May 2009 and then in the US from August-December 2009.

I left Canada June 6th, 2009.

I'm hoping I don't owe anyone anything!

You'll have to file your taxes to figure that out Allowable credits and deductions change when you status changes (I'm thinking of provincial tax credits etc....)

You definitely need to file both places like borderdriver

On another topic, I don't think the NR73 is entirely useless...I filled it out, but did have trouble correctly answering some questions the first time around (just ,my own stupidity...they seemed vague, but it did eventually allow CRA to determine my status. If you do fill this form, file early so they can process it and advise you of your residency status.

Edited January 7, 2010 by Udella&Wiz

[coldwatersurf 5]

You'll have to file your taxes to figure that out Allowable credits and deductions change when you status changes (I'm thinking of provincial tax credits etc....)

You definitely need to file both places like borderdriver

On another topic, I don't think the NR73 is entirely useless...I filled it out, but did have trouble correctly answering some questions the first time around (just ,my own stupidity...they seemed vague, but it did eventually allow CRA to determine my status. If you do fill this form, file early so they can process it and advise you of your residency status.

im going to file for this form to find out if the accountant i talked to last night is right or not. he kept telling me i had to file as a resident of Canada. and i kept telling him there is another way to do it w/ me as being non resident.

how long does CRA process NR73?

[Rustbelt 0]

im going to file for this form to find out if the accountant i talked to last night is right or not. he kept telling me i had to file as a resident of Canada. and i kept telling him there is another way to do it w/ me as being non resident.

how long does CRA process NR73?

Bank on about 6 weeks for processing of the NR73 - maybe longer.

But you will be considered a part-year resident of Canada, unless you happen to move on Jan 1st at midnight. To my knowledge, there's no getting around that. The NR-73 is most useful where you have ties to both countries and it's not clear which one would consider you a resident for tax purposes (yep, that does happen).

- Steve's wife

[coldwatersurf 5]

Would it be worth it to file my taxes together with my husband if I didnt work all that much in US...... so my employers didn't take any taxes off of my income (my income was under $10K for the year of 2009). Friends are telling me that my husband's tax return will be less.