2010 Tax thread - For Canada and the U.S.

[MsZ 6]

He didn't cash his RRSP.

[TimandJoyce 1]

He didn't cash his RRSP.

Oh ok..I was kinda looking at that link for the pdf form for the RRSP's. I guess the biggie question that I have... anyone?....is do I have to fill that out and send it. I moved in the middle of August last year, and my status was "pending" until February this year. I obviously didn't work. ( still not..*sheds a tear*)

Tim is on disability, and hasn't filed taxes year before last, or for this last year, as his income is so low.

I'm really quite nervous now...I don't know what to do...

[OBX 51]

Oh ok..I was kinda looking at that link for the pdf form for the RRSP's. I guess the biggie question that I have... anyone?....is do I have to fill that out and send it. I moved in the middle of August last year, and my status was "pending" until February this year. I obviously didn't work. ( still not..*sheds a tear*)

Tim is on disability, and hasn't filed taxes year before last, or for this last year, as his income is so low.

I'm really quite nervous now...I don't know what to do...

What I understood is that it is required if you hold a Canadian RSP; not for taxation purposes but more as a record your holdings.

Perhaps someone else can explain it better.

Edited March 23, 2010 by OBX

[MsZ 6]

That's exactly what I understood, OBX. I just want to make sure we have the right form and get it sent in.

[TimandJoyce 1]

Oh Ok... I think.. So even though I'm not filing for IRS, I should still fill out just the 8891, and state what my balance for 2009 was at the end of the year? Sorry for all the questions, but I want to make sure I do this right, if I'm to send anything at all.

Ahem..*lowers voice* Tim doesn't think I need to send IRS anything right now....

[MsZ 6]

Seems so, I'm afraid. Why isn't he declaring you a resident alien for 2009 so you can file married jointly?

[TimandJoyce 1]

Seems so, I'm afraid. Why isn't he declaring you a resident alien for 2009 so you can file married jointly?

Because he's on disability, and doesn't pay, or will receive taxes, and so he says he doesn't file. Hasn't for two years. He even wrote a letter during the AOS procedure because they wanted his 2008 tax returns..and he doesn't have anything. I guess they seemed to accept that because I'm approved.

He's just to stubborn to pay any attention to what I have to say about it....I figure..maybe the IRS will catch up with him sometime... I've tried to tell him..but hey..according to him....he knows what he's talking about...*hrmmmph*

[MsZ 6]

Did he have any taxes withheld? If so, i twould be prudent for him to fill out the paperwork to see if it would be beneficial to do . To me, it isn't fiscally responsible to not run though the numbers at least. The government might owe you money and he'd never know it... and the US government isn't someone I think should have an ounce more $ than they are absolutely due.

He can do it online for free to see if it'd be beneficial. Sounds like your situation isn't too complicated so it wouldn't take very long, either.

[MsZ 6]

Sanity check please : Can it actually occur that filing married/separate can produce a more advantageous situation?

I'm running the numbers separately with Mike as dual-status this year and it seems as though we do better, actually getting money back from the Feds and NY rather than owing.

Me : married/separate, claiming the house interest, etc. and 2 kids. Good salary with 16% 401K contribution.

Him : married/separate, just himself, with about 1/3 or his salary going into his 401K. He cannot itemize because I did.

I end up getting back $4700 from the feds and $107 from the state. He ends up owing nothing to the feds (no refund, either) and getting back a little from the state.

Does that pass a sanity check?

[TimandJoyce 1]

Did he have any taxes withheld? If so, i twould be prudent for him to fill out the paperwork to see if it would be beneficial to do . To me, it isn't fiscally responsible to not run though the numbers at least. The government might owe you money and he'd never know it... and the US government isn't someone I think should have an ounce more $ than they are absolutely due.

He can do it online for free to see if it'd be beneficial. Sounds like your situation isn't too complicated so it wouldn't take very long, either.

Hmmmm no, no taxes withheld. His last return, or filing was for the year 2007 when he worked the last two weeks of his job before filing for disability. That didn't start for him until August or Sept. of that year. He hasn't filed since. Guess he figures because I couldn't work here last year, I have nothing to claim. I don't know...I'm so confused...

I'm going to try to talk with again later. See if he'll at least call a tax center and ask someone. I'm hoping if someone in "the know" at least tells him what we should do...he may listen...

[MsZ 6]

So his income is less than what he'd need to owe any taxes. OK.

[GregBu 1]

Early last week I filed a W-7 for my wife's ITIN, along with our tax return, Married Filing Jointly. I mailed that off to ITIN Operations here in Austin.

I know that they process the ITIN first, and that takes maybe 6 weeks? Then they add her ITIN and forward the paperwork for the refund to be calculated, and that takes, 6 more weeks roughly (not sure about that)?

Basically the only thing I haven't been able to find out, is how long the whole process is going to take from sending in ITIN paperwork w/return, to actually getting the direct deposit for the tax return itself.

[coldwatersurf 5]

I finally hired a tax accountant to do my taxes.

He prepared form 1040 with form 1116.

But, I'm pretty screwed with IRS due to the fact I had to include all my 2009 income (yes, even the one before I moved to US). It turns out, my "worldwide income - canadian income of 4 months" before I moved put me in a higher US tax bracket and I have to pay additional taxes to IRS - I've already paid my Canadian taxes on it!!! I made over $10k. I still feel like I'm double taxed. I dont understand this logic!!! Accountant says If I only had my US income included, I wouldnt have to pay any taxes. I am not eligible to exclude this income. My accountant says this is just how US taxes work. But then again, i filed Married filing separately. I still dont think it would have been a benefit to my husband if I filed joint. I would probably decrease his return anyways.

He also didnt include the EI in my 1040 at first which had a zero taxes paid to IRS. then I brought it to his attention that dont i include "all my 2009 income". When he added my EI, it brought my income to a higher tax bracket and I have to pay $120 to IRS.

I dont know. it sounds all fishy to me that I have to pay additional taxes when i already paid CRA. I don't mind paying taxes I owe, its the fact I feel like im double taxed. Is this even correct?

[coldwatersurf 5]

also, Serbinski Accounting Firm forum is very helpful. Not sure if anyone knows this site but it targets accounting issues and there is a forum for specifically for canada and US accounting/financial questions.

http://forums.serbinski.com/viewforum.php?f=2

[Peachey 10]

Ok so I found this tonight (doing Varba and my US taxes)

*

If you are the nonresident alien spouse of a U.S. citizen or resident alien, you can elect to be treated as a U.S. resident in order to file a joint return. In this case, you can take the foreign earned income exclusion if otherwise qualified.

Note: A nonresident alien is generally not subject to U.S. tax on compensation for services performed outside the U.S. Thus, under the dual-status rules, aliens would not report their foreign earned during the non-residency part of the tax year. *

So, I got one last pay cheque after I moved. I only claim that amount?

I am still non-resident alien.