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

[coldwatersurf 5]

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.

Im assuming you're filing joint return?

you will file all your 2009 income. Use form 2555 to exclude your canadian income and use form 1116 to take a foreign tax credit.

If you do not want to report your canadian income, you must file dual status which does not allow MFJ (married filing jointly) and many other restrictions. (i was going to do this but its one of the most difficult tax filing. My accountant didnt even want to do it.

[Udella&Wiz 325]

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

You may be aware but you can file a Section 217 with the Cdn side (CRA) for your taxes on the Cdn income (EI)...you may get some of it back...probably not all but better then nothing

[coldwatersurf 5]

I'm aware

I dont get any credit on sec 217

[Peachey 10]

Im assuming you're filing joint return?

you will file all your 2009 income. Use form 2555 to exclude your canadian income and use form 1116 to take a foreign tax credit.

If you do not want to report your canadian income, you must file dual status which does not allow MFJ (married filing jointly) and many other restrictions. (i was going to do this but its one of the most difficult tax filing. My accountant didnt even want to do it.

Thanks so much! I can finish our taxes now

[MsZ 6]

We decided to go dual-status with my husband so we could exclude his Canadian income and it made a huge difference, even filing separately. It is really a shame that an accountant didn't want to do that work because if I can do it, he could do it too. And I did it with Turbotax.

[ozone_1974 1]

I am also extremely confused with taxes this year .. usualy in Canada (since I hate everything related to taxes, well except when I have a return .. lol) I just handed my taxes to my accountant and that was it

So this year, My accountant from Canada will do my Canadian taxes.

Now for the U.S taxes, how does it work ? if my wife file taxes jointly and include me on her taxes, do I still have to file taxes myself for the U.S ? do we have to use form 1116 ?

Also, back in 2009, was I non resident alien or resident alien ?????????????

I just do not know where to begin

Thanks in advance for any help

[Pauley 2]

Quick sanity check, to make sure I'm understanding something correctly:

I filed as married-filing-separately the last two years (2009 and 2008 tax years), because I didn't want to be taxed on Yvonne's Canadian income, not knowing I could have it excluded as a foreign tax credit. I'm looking at what to do with the 1040X to change filing status to married-filing-jointly and possibly get a better refund.

I'm not worried (yet) about what forms I need, as I used H&R Block Taxcut to fill out my original forms, and will likely go back to it to work out the amendment paperwork.

Here's the check: Now that we have my Yvonne's SSN (came in the mail today!), I can use it for the amended returns, even though she didn't have the number in 2009 or 2008, correct?

[darkchilde794 5]

Spoom, just saw your post on the other thread that you want merged here --

If you did not have an income here, you dont need to file taxes. I remember in 2009, I got the US tax booklet mailed to my Canadian address from the US for the 2008 tax year, even though I had not lived in the US for a year and had no income. Asked the accountant (hubby) what to do and he looked it up and said to just ignore it. As I did not work, I dont have to file taxes. I could have filled out the 1040NR and put zero in everything but I elected not to do that... and so far Im not in jail and have gotten residency, so I should be okay...?

[Pauley 2]

Quick sanity check, to make sure I'm understanding something correctly:

I filed as married-filing-separately the last two years (2009 and 2008 tax years), because I didn't want to be taxed on Yvonne's Canadian income, not knowing I could have it excluded as a foreign tax credit. I'm looking at what to do with the 1040X to change filing status to married-filing-jointly and possibly get a better refund.

I'm not worried (yet) about what forms I need, as I used H&R Block Taxcut to fill out my original forms, and will likely go back to it to work out the amendment paperwork.

Here's the check: Now that we have my Yvonne's SSN (came in the mail today!), I can use it for the amended returns, even though she didn't have the number in 2009 or 2008, correct?

I don't normally bump, but this went a few days without getting noticed; wanted to make sure it didn't get lost...

[jken 2]

ooo gawd this is confusing...here goes and I hope someone with more brain power can provide some direction!

I expect to poe, Dec of 2010 - and to marry Dec18, 2010. So i know i have to file tax return in canada, as i will work until end of nov 2010. I am in bankruptucy procedure...long story...div., etc., hoping i will have discharge by the time i leave canada...

having said that....b/c we will be married in 2010 - when hubby files does he need to claim my canadian income? will the bankruptcy have any effect...any information on this would be much appreciated - i have zero experience in this field...normally take itto h nr and pay the fee and sing the papers!

tx guys

[Colleens 40]

ooo gawd this is confusing...here goes and I hope someone with more brain power can provide some direction!

I expect to poe, Dec of 2010 - and to marry Dec18, 2010. So i know i have to file tax return in canada, as i will work until end of nov 2010. I am in bankruptucy procedure...long story...div., etc., hoping i will have discharge by the time i leave canada...

having said that....b/c we will be married in 2010 - when hubby files does he need to claim my canadian income? will the bankruptcy have any effect...any information on this would be much appreciated - i have zero experience in this field...normally take itto h nr and pay the fee and sing the papers!

tx guys

I am not sure on your questions, but when hubby was doing his taxes in the US for last year he used H&R. I was there with him and asked about doing our taxes for this year. The have people who are familiar with both US and Canada tax laws so they will be able to help file both returns. Maybe on your next visit you can pop into an office and ask...or have your fiance(e) ask for you.

[Inky 1,110]

We had H&R last year and they claimed my money on the joint taxes we filed and my income ended up putting my husband in a lower tax bracket and he had to pay nothing because I didnt make much. We also got a forgen tax credit from my income. The people we had at H&R seemed to know what they were doing. We just hope it doesnt come back to bite us in the #### later on for whatever reason! We picked H&R because of the special service of them taking care of mistakes made on the tax things specially when it was our first time filing together with my canadian income I had. Didnt wanna risk ourselfs messing it up badly because neither of us could understand all the confusing stuff!

for 2010 we will be filing joint with the base for free quick filing since I have no more canadian income.

[Brandy&Albert 0]

I'm hoping someone can help me out with this - maybe just checklist of what we need to do/fill out

My fiance is moving from Toronto to Seattle with a K-1 visa in Nov. 2010, we're not getting married til Jan. 4, 2011.

He's quitting his job at the end of October so he can get his last paycheck, close his bank accounts, yada yada.

I know I'll still be filing as a single person here in the states for 2010, what does he have to do? He won't be working in the US til probably April of 2011. What forms will he have to file for his Canadian taxes? I tried reading through this forum but my brain almost exploded...

Or would it be better if we got married before the end of 2010? Would that make a difference for either of our taxes?

Edited September 25, 2010 by Brandy&Albert

[Inky 1,110]

He would be filing a leaving canada tax return. I had a hell of a time with CRA..... The GST thing was a big issue. They kept sending me it and saying I cashed the checks when I never did and i kept sending it back. I called them every day trying to tell them to STOP sending them and I sent them back to them they said they never got them. Took MONTHS for me to sort that out with them they " found " all the GST checks I sent back to them finally after yelling at this poor woman on the phone for 30 mins. I appologized to her and told her to make Dang sure that this time its FIXED and that I do not get anymore GST checks. 3 months later I get notified that I dont owe CRA GST payments. I still cant believe it took them 3 months from my phone call to imput the checks... soo just a heads up and make sure he gets that all cleared before he leaves LOL!

[Brandy&Albert 0]

*bump* I'm really hoping someone can help us out here - (see my comment 2 posts prior)

Just trying to get everything figured out before POE next month!