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

[OBX 51]

Not sure if this resource has been posted in this thread yet but this explains a lot about the US filings. As fas as whether you are better off filing jointly or separately it depends on your total income. It may pay to calculate it both ways and see which works better for your particular situation. If you do file jointly you must include both spouses' total worldwide income. You may be able to claim some relief on your Canadian income via forms 2555 and 1116.

IRS Tax Guide for Aliens

[Reddstars 5]

My wife and I were married in Sept 2010 and she has not worked or anything just a housewife. Not really sure how or what we should file? Anyone can chime in would be helpful, thnx. Non Resident Alien 1040???

[OBX 51]

My wife and I were married in Sept 2010 and she has not worked or anything just a housewife. Not really sure how or what we should file? Anyone can chime in would be helpful, thnx. Non Resident Alien 1040???

From what I understood from the guide I posted in the reply above, if you were married by the end of the year you can elect to treat your "non-resident" spouse as a resident for the entire year and file married jointly. If she had no worldwide income that may reduce your tax burden and result in a higher refund than if you filed married separately. Have a read through the guide, it explains how to do this.

[Udella&Wiz 325]

From what I understood from the guide I posted in the reply above, if you were married by the end of the year you can elect to treat your "non-resident" spouse as a resident for the entire year and file married jointly. If she had no worldwide income that may reduce your tax burden and result in a higher refund than if you filed married separately. Have a read through the guide, it explains how to do this.

That's what we did the first year (Married in Nov of that year) it was helpful even though I had foreign income from my work in Canada...got a whopping US return back because he could claim me - yay

[jken 2]

Hey all - Quick question-confirmation. Pleaseeeeee

I entered US in Dec of 2010, so am filing ax exit return in Canada for 2010. Got that. My husband, we married Dec of 2010, will be filing married - together. My question is Do I need to file my Canadianreturn before he can file his US return. I only have one T-4 from Canada.

Thanks Folks.

[zyggy 9]

My wife's interview is on 03/11/10 by the time she get her passport back and then get her ssn it might take 2months, i want to wait until she come's here to file my taxes but i think it going to be impossible before the tax deadline.

Another question i had is can i file joint tax return if she does not meet the tax deadline or do i jus go ahead and file married but single tax return im very confused here, can anyone shed some light!!!

THis would be a good use of filing an extension.

[zyggy 9]

I'm pretty sure Canada counts your leave date as the physical date you left Canada.

For the US, they base your residency a bit differently and they explain it on their site.

I'm confused about the 2555 now too.

Use the Form 2555 is not dependent on the calendar you, but on a continuous 365 day period. So if you left Canada in March 2010 and you lived in Canada from March 2009 to March 2010, you can exclude the income earned in Canada using Form 2555 up to March 2010. Any foreign income earned after that period cannot be excluded.

You do not need to submit any evidence of the income with the Form 2555 or any other forieng income. You are more on the honor system. But if you get audited, the IRS can find out about the sources of your worldwide income due to their relationship with other taxing authorities and the fact that they can place pressure on foreign banks to divulge foreign account information due to the US being a world banking center.

Edited March 7, 2011 by zyggy

[jken 2]

Back again for help!!

My question ('s):

Trying to figure out if it is better for my husband to file jointly or seperate for 2010.

My income was in Canada, slightly under 40,000. - hubby's US dollars, - he's retired; was about 40,000. as well. Would it be better for him to file seperately or jointly?

I am filing my exit return for canada and am claiming my daughter as a dependant...but I cannot locate how much I can claim her for??? What amount do I enter on line ...305 i think it is from schedule 5.??

Thank you.

[Udella&Wiz 325]

Back again for help!!

My question ('s):

Trying to figure out if it is better for my husband to file jointly or seperate for 2010.

My income was in Canada, slightly under 40,000. - hubby's US dollars, - he's retired; was about 40,000. as well. Would it be better for him to file seperately or jointly?

I am filing my exit return for canada and am claiming my daughter as a dependant...but I cannot locate how much I can claim her for??? What amount do I enter on line ...305 i think it is from schedule 5.??

Thank you.

I would suggest just running both scenarios in a tax program, then you see the end result for both....I would guess that filing married will probably net a higher return if he's claiming both you and your daughter...but just a guess. Not sure if you arrived in 2010?

[carslo 0]

Okay let me see if I have this right as I am throughly confused.

I left Canada in June 2009 - I filed my Canadian taxes for 2009 which included wages and EI benefits.

The EI benefits continued into 2010 for approximately $4600.00 they took the 25% off of them.

I have a T4E now and I have been working in the USA.

My husband needs to file with our US taxes the EI monies from Canada but will use a 2555-EZ to exclude this income as I have paid taxes to Canada on these monies?

Do I have to file taxes in Canada? They have their money already? Isn't my obligation to them upheld when they took the non-resident taxes off?

I struggled with forms and numbers for 4 hours the other night over what to do for the 2010 Candain tax return.

Thanks in advance for any help or light that someone can shed my way.

Janet

[carslo 0]

See above - hmm that doesn't look like the right thing either nor the 1116. Oh, drats this is complicated and what happens in 2 years when I can get my superannuation out of BC?

Help!

[jken 2]

I would suggest just running both scenarios in a tax program, then you see the end result for both....I would guess that filing married will probably net a higher return if he's claiming both you and your daughter...but just a guess. Not sure if you arrived in 2010?

Thanks for response...much appreciated. I entered in dec of 2010 and we married dec of 2010. I am caliming my daughter in canada - however she remained in canada...he is not claiming her. We are having h n r block do his taxes....will they do it both ways to find the best option? Or will having my foreign income exempt be enough for him to file here married/jointly? Gawd - i wish this part was over...I'd rather fill out another k1 package!

tx

[zyggy 9]

See above - hmm that doesn't look like the right thing either nor the 1116. Oh, drats this is complicated and what happens in 2 years when I can get my superannuation out of BC?

Help!

You would use the 1116 for the 25% non-resident tax. Same thing for when you take your pension out of BC... but personally I would leave it alone until I had to pull it.

[zyggy 9]

Thanks for response...much appreciated. I entered in dec of 2010 and we married dec of 2010. I am caliming my daughter in canada - however she remained in canada...he is not claiming her. We are having h n r block do his taxes....will they do it both ways to find the best option? Or will having my foreign income exempt be enough for him to file here married/jointly? Gawd - i wish this part was over...I'd rather fill out another k1 package!

tx

Why aren't you claiming her? You should if she qualifies as a dependent according to US tax rules. Whether she lives with you or not has nothing to do with it, it has to do whether or not you provide more than half her support. And it's BOTH of your taxes... not just his, he would at least have to declare you as his spouse to get the better tax treatment. The guys at HRB usually have no clue how to do cross border taxes, especially a special subset like a foreign spouse, you usually have to hold their hand through it.

Seperately is probably not the better deal. The better deal is almost always joint, especially if you have a lower income.

Edited March 14, 2011 by zyggy

[jken 2]

Why aren't you claiming her? You should if she qualifies as a dependent according to US tax rules. Whether she lives with you or not has nothing to do with it, it has to do whether or not you provide more than half her support. And it's BOTH of your taxes... not just his, he would at least have to declare you as his spouse to get the better tax treatment. The guys at HRB usually have no clue how to do cross border taxes, especially a special subset like a foreign spouse, you usually have to hold their hand through it.

Seperately is probably not the better deal. The better deal is almost always joint, especially if you have a lower income.

Thanks zygg - for input...but not sure i comprehend 100%! I lived in Canada with my 18 yr old daughter until Dec of 2010...She graduated from h/s in june...so when i do my exit return in Canada I am claiming her there. (have to find out how much i can claim her for...at any rate.) It looks like my husband will file married/jointly...Do you mean to say that he can also claim my daughter? Sorry if this was something simple that i miscontrued.!