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

[zyggy 9]

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.!

If you file joint... yes. You will have to get a ITIN for her though.

Edited March 14, 2011 by zyggy

[Love_Young 0]

I have posted in here before but still have some questions.

I am the US citizen but I am living with my husband in Canada with him. (Have been for two years today)

I haven't earned any worldwide income and we got married in May 2010.

He is not immigrating to the US but we are currently awaiting Canada's decision on our application for me to immigrate there.

I just now found out that I need to file a US tax return since I got married last year. I have never filed a US tax return before because it wasn't needed.

Now I am not sure what forms I need to fill out, where to mail it to, etc. I am planning on filing as "married filing separately" since my husband doesn't have an ITIN or SSN. And I know that I should fill out the spot as NRA or NR in the spot where it asks for his SSN number. And I will include a letter explaining our situation.

I just want to make sure I am going about things in the right way.

Here are my questions:

1. Usually when you applied as "married filing separately" you would both be filing separately but my husband doesn't need to, will he get in trouble for that later on?

2. What address do I mail the return to?

3. How long does it take to get a reply back about it?

4. Do I apply with my address from the US or here in Canada?

5. What forms do I need to mail since I am living abroad with my husband?

6. What is tax with-holding?

7. My income is zero, how would I fill this out?

8. Will my husband's income play a factor into my return?

9. Will I get a refund even with no income, if so would they mail it abroad and could I still cash it here?

I know we got to get this done soon so I would appreciate any answers/tips you can give to us soon. I just don't want to get in trouble later on down the line and looking for a fairly simple way about this. Looking forward to your responses. Thank you!

[jken 2]

I worked in Canada until end of Nov., 2010. I p.o.e'd in USA on Dec3 2010. Married dec 18,2010. I have no US income for 2010. Si am filing an exit return for Canada - as NON-RESIDENT OR AS A RESIDENT- This is the million dollar question today for me! I filed for aos etc.,

Secondly, my husband the USC, is filing as married -jointly. Opting to chose to treat me a resident alien. Do I need to file in the US as well?

We are going to HRB on Monday but not sure if I have too much faith in them!

Edited March 16, 2011 by jken

[Love_Young 0]

Still would appreciate some help here.

Edited March 16, 2011 by Love_Young

[HeatDeath 430]

I have posted in here before but still have some questions.

I am the US citizen but I am living with my husband in Canada with him. (Have been for two years today)

I haven't earned any worldwide income and we got married in May 2010.

He is not immigrating to the US but we are currently awaiting Canada's decision on our application for me to immigrate there.

I just now found out that I need to file a US tax return since I got married last year. I have never filed a US tax return before because it wasn't needed.

Now I am not sure what forms I need to fill out, where to mail it to, etc. I am planning on filing as "married filing separately" since my husband doesn't have an ITIN or SSN. And I know that I should fill out the spot as NRA or NR in the spot where it asks for his SSN number. And I will include a letter explaining our situation.

I just want to make sure I am going about things in the right way.

Here are my questions:

1. Usually when you applied as "married filing separately" you would both be filing separately but my husband doesn't need to, will he get in trouble for that later on?

2. What address do I mail the return to?

3. How long does it take to get a reply back about it?

4. Do I apply with my address from the US or here in Canada?

5. What forms do I need to mail since I am living abroad with my husband?

6. What is tax with-holding?

7. My income is zero, how would I fill this out?

8. Will my husband's income play a factor into my return?

9. Will I get a refund even with no income, if so would they mail it abroad and could I still cash it here?

I know we got to get this done soon so I would appreciate any answers/tips you can give to us soon. I just don't want to get in trouble later on down the line and looking for a fairly simple way about this. Looking forward to your responses. Thank you!

Ok. I just finished my taxes, so I'll take a swing at these.

BTW, this page on irs.gov has links to the most commonly needed tax forms and, more importantly, their instruction documents: http://www.irs.gov/formspubs/index.html?portlet=3

The whole setup is very similar to USCIS's forms area. You have form PDFs, and instruction booklet PDFs. If you can follow USCIS instructions, IRS instructions aren't really any harder.

1. Since your husband is neither a US citizen, national, nor resident, he has no tax obligations to the US government whatsoever. Even if he eventually becomes a US resident, his tax obligation would only start then. So no, he won't get in any kind of trouble

2. The table of addresses can be found on the last page of the 1040 instructions PDF, which includes an entry for being outside the US: http://www.irs.gov/pub/irs-pdf/i1040.pdf

3. 6-8 weeks I think.

4. Use the address in Canada.

5. Depends on what your sources of income are. If you have a Canadian bank account, or any kind of interest or dividends, you will need a Schedule B. If you have RRSPs, you will need Form 8891s for them. If your sources of income have been taxed already by Canada, you will need a 2555, and maybe a 1116. If you have no income, you can probably just use the 1040, or maybe even the 1040-EZ. Check the 1040-EZ instructions to make sure you qualify: http://www.irs.gov/pub/irs-pdf/i1040ez.pdf

6. That's the taxes your employer, if you have one, holds back from your paycheque. Your tax bill draws from your withheld money first. If there is any withheld money left over from your taxes, they give it to you. That is your tax refund. If your taxes total more than what was withheld over the course of the year, you need to write the IRS a cheque for the difference. That's if you're working for a US employer. Reporting Canadian income to the IRS, and taking Canadian government withholding into account, is significantly more complex. But it sounds like you don't have to worry about that.

7. You enter a 0 in line 7 of the 1040 [Line 1 on the 1040-EZ], where it asks for wages, salary, and tips. Easy

8. No. You are doing "married, filing separately", so all of the numbers are just your information - his information doesn't enter into anything.

9. Normally, no income means no refund. However, there may be some tax credits that apply to you. In 2009, I had 400 dollar refund, with no taxable US income, because of the way the "Making Work Pay" tax credit was worded. But I think they fixed it this year so you can't do that anymore. If you do have a refund, they would mail a cheque to you. I think most Canadian banks could handle a US government cheque, but there would be a processing delay and probably a small fee. You'd have to ask at your local branch.

[HeatDeath 430]

9. Normally, no income means no refund. However, there may be some tax credits that apply to you. In 2009, I had 400 dollar refund, with no taxable US income, because of the way the "Making Work Pay" tax credit was worded. But I think they fixed it this year so you can't do that anymore. If you do have a refund, they would mail a cheque to you. I think most Canadian banks could handle a US government cheque, but there would be a processing delay and probably a small fee. You'd have to ask at your local branch.

Turns out you couldn't do it last year either. Oops.

They really should have checked that before they sent me the check.

Oh well. Now I get to learn how to fill out a 1040X. Sigh.

Edited March 18, 2011 by HeatDeath

[jken 2]

Just wondering if anyone in the US, has tried using phankuetx for filing a return for Canada?

Edited March 27, 2011 by jken

[redmen99 1]

Help! I'm so confused! I'm reading the US Tax guide for Aliens but I don't see anything about EI payments in there. My husband was unemployed and on EI his entire time in Canada in 2010 (until March) and for like a month in the US. I'm not sure if he received a T4E or not. If he received that form, do I need to report his EI income on the unemployment line and then file the Tax Credit form 1116 for that money? If he didn't receive the form, should I just fill out my forms as usual and not worry about his EI payments?

Thanks for any advice you can give.

[zyggy 9]

I have posted in here before but still have some questions.

I am the US citizen but I am living with my husband in Canada with him. (Have been for two years today)

I haven't earned any worldwide income and we got married in May 2010.

He is not immigrating to the US but we are currently awaiting Canada's decision on our application for me to immigrate there.

I just now found out that I need to file a US tax return since I got married last year. I have never filed a US tax return before because it wasn't needed.

Now I am not sure what forms I need to fill out, where to mail it to, etc. I am planning on filing as "married filing separately" since my husband doesn't have an ITIN or SSN. And I know that I should fill out the spot as NRA or NR in the spot where it asks for his SSN number. And I will include a letter explaining our situation.

I just want to make sure I am going about things in the right way.

Here are my questions:

1. Usually when you applied as "married filing separately" you would both be filing separately but my husband doesn't need to, will he get in trouble for that later on?

2. What address do I mail the return to?

3. How long does it take to get a reply back about it?

4. Do I apply with my address from the US or here in Canada?

5. What forms do I need to mail since I am living abroad with my husband?

6. What is tax with-holding?

7. My income is zero, how would I fill this out?

8. Will my husband's income play a factor into my return?

9. Will I get a refund even with no income, if so would they mail it abroad and could I still cash it here?

I know we got to get this done soon so I would appreciate any answers/tips you can give to us soon. I just don't want to get in trouble later on down the line and looking for a fairly simple way about this. Looking forward to your responses. Thank you!

1. No, if he is not a US Permanent resident or Citizen, he has no obligation to file a US Income Tax return.

2. You send it to Austin, TX, or you can file electronically. If your husband does not have an ITIN, you have to file by mail.

3. A while...

4. Use your Canadian address

5. YOu would file a normal 1040. But would exclude your foreign income using Form 2555. YOu would also have to file an W-7 to get an ITIN. YOu have to go to an acceptance agent to have them verify his documents. A list of acceptance agents is on the IRS website.

6. Not sure what you mean..

7. If your income is 0... you have no obligation to file as you have no worldwide income.

8. See question 1 and 7

9. See question 1 and 7

Help! I'm so confused! I'm reading the US Tax guide for Aliens but I don't see anything about EI payments in there. My husband was unemployed and on EI his entire time in Canada in 2010 (until March) and for like a month in the US. I'm not sure if he received a T4E or not. If he received that form, do I need to report his EI income on the unemployment line and then file the Tax Credit form 1116 for that money? If he didn't receive the form, should I just fill out my forms as usual and not worry about his EI payments?

Thanks for any advice you can give.

When did your husband leave Canada. That is an important question. Once you answer that, we can answer the rest.

[redmen99 1]

1. No, if he is not a US Permanent resident or Citizen, he has no obligation to file a US Income Tax return.

2. You send it to Austin, TX, or you can file electronically. If your husband does not have an ITIN, you have to file by mail.

3. A while...

4. Use your Canadian address

5. YOu would file a normal 1040. But would exclude your foreign income using Form 2555. YOu would also have to file an W-7 to get an ITIN. YOu have to go to an acceptance agent to have them verify his documents. A list of acceptance agents is on the IRS website.

6. Not sure what you mean..

7. If your income is 0... you have no obligation to file as you have no worldwide income.

8. See question 1 and 7

9. See question 1 and 7

When did your husband leave Canada. That is an important question. Once you answer that, we can answer the rest.

Ziggy,

My husband left Canada March of 2010. Not sure that it matters, but he got his first job in the US in April. Thanks for the help!

[zyggy 9]

Ziggy,

My husband left Canada March of 2010. Not sure that it matters, but he got his first job in the US in April. Thanks for the help!

The EI that he earned in Canada would be excluded using Form 2555

The EI that was earned in the US would have to be reported and the tax you paid on it would be taken as a foreign tax credit.

You can get the T4E from the HRSDC website.

Edited April 8, 2011 by zyggy

[westcon5 2]

Hello everyone.

I've been searching various website on how to properly file our taxes this year, but just end up more confused. I've always done them for myself, but 2010 has been a big year, like for so many of you.

Of all the topics I have found on this forum, none are exactly the same as our situation.

The background: My wife and I were married on 5/15 o of last year. We immediately filed for her CR1 visa. We had her interview in Montreal in March of this year and have the visa in hand. We were waiting to file taxes until she actually moved down here and received her SSN, but that did not happen as quickly as we hoped. So, her condo in Canada sold and the move out is scheduled for 5/14. We plan for her POE at that time. In the meantime, we needed to get the US taxes done. My wife did not live in the US at all in 2010.

So, I see many people have filed their taxes using form 2555. We had our taxes done at an H&R Block with someone who does many US/Canadian filings since we live close to the border. I have to assume she knows what she is talking about, but it didn't sound correct to me from everything I have read.

She completed our taxes as MFJ with Form 1116.

When doing my taxes at home (in hopes of not having to use someone else), I came out with a much different number. Basically, the lady told us we could not use the from 2555 in our situation. I asked her if I filed MFS, what would be the outcome. She plugged those numbers in and the refund was 1/2 of what it was as MFJ. She stated that if I elected to file MFS, I could not itemize since my wife would not be. I purchased a home last year, which has some benefits come tax season.

What method do you guys use who are in this situation...foreign spouse not living in US yet? Last year my wife did make more than me. I am assuming that because of that and the way the tax is calculated on the US return, we are being taxed at a higher rate, thus lowering the refund.

Anyway, if anyone is in the same boat, I would greatly appreciate your comments on how you filed. I thought I had read online and from the IRS U.S. Tax Guide for Aliens that we could elect for my wife to be treated as a resident alien and exclude her income via form 2555 and a letter signed by both of us.

Thanks in advance for any help!

[OBX 51]

Hello everyone.

I've been searching various website on how to properly file our taxes this year, but just end up more confused. I've always done them for myself, but 2010 has been a big year, like for so many of you.

Of all the topics I have found on this forum, none are exactly the same as our situation.

The background: My wife and I were married on 5/15 o of last year. We immediately filed for her CR1 visa. We had her interview in Montreal in March of this year and have the visa in hand. We were waiting to file taxes until she actually moved down here and received her SSN, but that did not happen as quickly as we hoped. So, her condo in Canada sold and the move out is scheduled for 5/14. We plan for her POE at that time. In the meantime, we needed to get the US taxes done. My wife did not live in the US at all in 2010.

So, I see many people have filed their taxes using form 2555. We had our taxes done at an H&R Block with someone who does many US/Canadian filings since we live close to the border. I have to assume she knows what she is talking about, but it didn't sound correct to me from everything I have read.

She completed our taxes as MFJ with Form 1116.

When doing my taxes at home (in hopes of not having to use someone else), I came out with a much different number. Basically, the lady told us we could not use the from 2555 in our situation. I asked her if I filed MFS, what would be the outcome. She plugged those numbers in and the refund was 1/2 of what it was as MFJ. She stated that if I elected to file MFS, I could not itemize since my wife would not be. I purchased a home last year, which has some benefits come tax season.

What method do you guys use who are in this situation...foreign spouse not living in US yet? Last year my wife did make more than me. I am assuming that because of that and the way the tax is calculated on the US return, we are being taxed at a higher rate, thus lowering the refund.

Anyway, if anyone is in the same boat, I would greatly appreciate your comments on how you filed. I thought I had read online and from the IRS U.S. Tax Guide for Aliens that we could elect for my wife to be treated as a resident alien and exclude her income via form 2555 and a letter signed by both of us.

Thanks in advance for any help!

Correct. That is how we did for the year we were married but I was still in Canada.

[westcon5 2]

Correct. That is how we did for the year we were married but I was still in Canada.

Thanks OBX!

Did your spouse visit the US before they entered? That is the only hangup we are having now. My wife and I live about 40 miles apart, so she comes down almost every weekend. We are not sure how to fill in the section asking how many days they were out of the country, as it most certainly is over 35 days total during 2010. Are people able to get a list from CBP on their crossing record? There is no way to remember every time she crossed to stay for the weekend, as we did not keep this type of record.

Anyway, thanks again for your reply. We'll try to figure this last bit out so I can finish our taxes. I guess I can always file MFS and skip all this stuff, although the refund difference is quite large.

[OBX 51]

Thanks OBX!

Did your spouse visit the US before they entered? That is the only hangup we are having now. My wife and I live about 40 miles apart, so she comes down almost every weekend. We are not sure how to fill in the section asking how many days they were out of the country, as it most certainly is over 35 days total during 2010. Are people able to get a list from CBP on their crossing record? There is no way to remember every time she crossed to stay for the weekend, as we did not keep this type of record.

Anyway, thanks again for your reply. We'll try to figure this last bit out so I can finish our taxes. I guess I can always file MFS and skip all this stuff, although the refund difference is quite large.

I'm the Canadian and I did travel to the US up to August of 2008 although I do not think it was more than 35 days. My interpretation from the link below is that visiting does not come into play when determining bonafide residence. I did not consider visiting the US as having given up my Canadian residence. I was still employed, owned a home, had family and paid taxes in Canada and was not going to the US on business. (Part III on the 2555 asks for days in the US on business.) The whole thing still makes my head spin.

Bona Fide residence test

Good luck!