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

[The_Dude 1,142]

Well, just to clarify. When I filed from Canada, I only filed for myself, used the 2555 and did not include slips.

When we were in the U.S. I DID include my Husbands T4 slip with the return (along with his W2s) - if I remember correctly.

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I was leaning towards including Mel's T4 in with my returns, just in case. Did you include his original, or copies?

[SapphireDreams 71]

I'm still extremely confused on who can use the 2555 exclusion..(see last post in zyggy's thread)

Does tax home mean just 2009 or any 330+ days in which you lived in foreign country?

I moved to the U.S. Sept 21st, and became a PR "date" 12/14/09. When does Canada treat you as a non resident? Left Canada? Or PR in the USA date?

Still confused how my lump sum pension will be treated as well.

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.

[trailmix 77]

I was leaning towards including Mel's T4 in with my returns, just in case. Did you include his original, or copies?

I sent originals, only because I had extras - they usually give you a couple of originals of each slip.

[Udella&Wiz 325]

I sent originals, only because I had extras - they usually give you a couple of originals of each slip.

I think we included one of the original copies....you usually have 3 ...1 for my Cdn return, 1 for the US and 1 I filed at home

[hapycloud 0]

It would be foreign income, Hapy.

OK so I was looking at the foreign earned income form and I don;t think it makes sense for unemployment benefits. If my husband is getting EI isn't that considered unearned income? He no longer has an employer...or should I put his previous employer that he was working for prior to his move. I am completely confused here!

[Danu 19]

So I'm still filing on my own this year as we didn't get married until the new year. However I'm filing from the states. Does this mean I should use something like ufile and send it to the international tax place? This means I can't file it online at all? I'm just wondering because 2009 isnt being filed as a non-resident, as I was in Canada through the end of the year. I guess I'm just wondering if they will get all confused because of it being filed under a US address even though I am still filing it as a resident. I know next year I will have to put my leaving date on the tax form when I file for the whole 10 days I was in Canada. This is probably a really easy answer but for some reason its all muddling in my mind. I think I've been dealing with a bit too much paperwork lately

Edited February 4, 2010 by Danu

[Danu 19]

Never mind I found my own answer! I can't because the address is outside Canada, even though I'm filing it as a resident for this year.

[Married2009 32]

Questions - since my husband is not in the States yet, and we don't have an ITIN number for him, can I file married filing separate, and do an amended tax return when he gets here? Seriously thinking about just waiting til he is here, and has a SSN. And do we have to fill something out on his bank account, if it has over $10k? (Read that in this thread, hadn't heard about it before.)

[zyggy 9]

Since no one else is biting...I'll go first!

Question: if I obtain my SSN before my wife files her taxes, will she be able to file as married-joint with me, thus receiving a reduction for the 2009 tax year?

I'm pretty sure the answer is YES to that...but I'd like a bit more feedback if anyone can provide it.

She has to file as married anyways. If you don't get an SSN, fill out a W-7 for an ITIN and send it and the return to the Austin address. Not filing as MFJ is leaving a lot of money on the table.

Questions - since my husband is not in the States yet, and we don't have an ITIN number for him, can I file married filing separate, and do an amended tax return when he gets here? Seriously thinking about just waiting til he is here, and has a SSN. And do we have to fill something out on his bank account, if it has over $10k? (Read that in this thread, hadn't heard about it before.)

Again, you have to file a W-7 with a tax return, so file as married filing joint now and get the W-7 in. If he will be here before October, you can file for an extension and then file once he has the SSN. Do your taxes as MFJ, and if you won't owe, just file the extension and wait.

OK so I was looking at the foreign earned income form and I don;t think it makes sense for unemployment benefits. If my husband is getting EI isn't that considered unearned income? He no longer has an employer...or should I put his previous employer that he was working for prior to his move. I am completely confused here!

EI is considered earned income. If he is in the US, the benefits are taxable and should be reported as other income or under unemployment benefits. He can take the taxes Canada takes out as a foreign tax credit.

I was leaning towards including Mel's T4 in with my returns, just in case. Did you include his original, or copies?

Sending in your T4s is not necessary and really shouldn't be done./ When it comes to forrign income, you're on the honor system. If you get audited for it, you have the proof in the form of the T4. Make sure you keep a copy of how you converted the CDD into USD

Edited February 4, 2010 by zyggy

[zyggy 9]

Considering that my wife didn't earn any income in the U.S., and only payed taxes in Canada, wouldn't that be her tax home?

No... Her tax home is specifically defined by the US/Canada tax treaty. If your wife spend more than 6 months in the US or has a Green Card, the US is her tax home.

Oooh, thank you! I agree with Ashen... I've read through most of the other tax thread, but it is incredibly long and perhaps, partly, outdated.

So, this will be the first time I file taxes myself... I usually just hand them off to the woman who does the taxes for my parents' business. Is ufile.ca still the best option for a first- (and last-) timer? Hubby uses TurboTax, but I assume that's a U.S. only program?

Also, regardless of what program I use, I assume I can't efile it? I have to mail it in to the International Tax Office in Ottawa, right?

If so, about how long should I allot myself for mailing time? I know my former employer tends to be a bit lax in sending out T4s.

THe thread is not outdated. All the info in there is still valid. Nothing in the tax code has changed for 2010 that pertains to that thread.

[Wyatt's Torch 45]

Thanks a lot for chipping in to this thread, Zyggy!

It looks like the timing for my arrival in the U.S. will be beneficial -- I should have my SSN before April 15th, and we can file married-joint as a result.

[zyggy 9]

I'm still extremely confused on who can use the 2555 exclusion..(see last post in zyggy's thread)

Does tax home mean just 2009 or any 330+ days in which you lived in foreign country?

I moved to the U.S. Sept 21st, and became a PR "date" 12/14/09. When does Canada treat you as a non resident? Left Canada? Or PR in the USA date?

Still confused how my lump sum pension will be treated as well.

What you choose as your leaving Canada date is open to interpretation and there has been no guidance on what they want. Being conservative, I usually take the approach with the least risk, which is the date you left Canada to take up residence in the US. One could argue that you are not technically a resident until you receive the Green Card which is much later. But if CRA finds against you, you will owe for the interim.

What do you mean by lump sum pension. Do you mean cashing in an RRSP?

As to whether you can use the 2225, it is quite clear, if you lived outside the US for 330 out of any consecutive 365 day period, not necessarily a calendar year, you can use it to exclude income for the period you were a non-resident.

Edited February 4, 2010 by zyggy

[The_Dude 1,142]

Is that 330 out of 365 days outside the U.S. a litmus test for using form 2555? My wife arrived here at the end of March, and didn't work, or receive EI this year. She only worked for 2.5 months in Canada. I was having trouble determining whether or not we should use the 2555 or 1116. Could you shed some light?

[zyggy 9]

Is that 330 out of 365 days outside the U.S. a litmus test for using form 2555? My wife arrived here at the end of March, and didn't work, or receive EI this year. She only worked for 2.5 months in Canada. I was having trouble determining whether or not we should use the 2555 or 1116. Could you shed some light?

Exactly. If she lived in Canada for 330 days between March 2008 and March 2009, she can use the 2555 for January to March 2009.

[Necrotica 0]

Ok, my tax issues aren't regarding Canadian income (got that all out of the way a couple of years ago, thank goodness), but I saw that Réjean's name was misspelled on his 1099-G from Missouri Unemployment and one of his W-2s. Does anyone happen to know if we have to wait to file until we get those amended with the correct spelling of his first name?