CanadianTaxes

[Flames9_RN 358]

Anyone else file using section 217, especially those that got EI or Retiring allowance?? I phoned the international tax branch, and he said I could possibly use section 17. What concerns me is that by utilizing it, I get like $2000 back. If I just file regulary, I get like $100 back!! I'm using Quicktaxweb.ca to do the paperwork, and paperfile. Since I made under $25000 cdn its totally free.

http://www.cra-arc.gc.ca/tax/nonresidents/...iors_217-e.html

http://www.cra-arc.gc.ca/E/pbg/tf/5013-sc/README.html

Thanks

Scott

[ceriserose 1]

This is the thing I'm debating doing...actually mine would be under a "partial year 217." I am still waiting for one more slip and then I can work it up one way or the other.

It sounds like yours is definitely a benefit to go that route!

[Flames9_RN 358]

It just seems hard to belive its allowabale, such a big refund difference. Guess one can do it and if its wrong, they will notify me!!

[Mr&Mrs2859 0]

Will show these to hubby tonight this is going to be a confusing file year

[Reba 2]

Will show these to hubby tonight this is going to be a confusing file year

tell me about it!

I dunno what to do with mine this year, I'm all confused (hence the visit here!)

Last year I cashed in my RRSP, which was my only "Canadian" income, for around $40k, and I did not live in Canada last year at all. (because of North Carolina confusing state investment laws, I couldn't keep my RRSP in Canada). My US income last year was not even $10k, but I also started my own home based business, so I have quite a lot of business expenses to itemize, so my hubby and I are doing our taxes separately.

I don't know if I should do both a Canadian and a US tax return, or just do a US return and claim my RRSP income on my US forms. The Canadian taxes were already deducted from the $40k obviously, at the 25% flat rate, so I'm not sure if with the tax treaty between the 2 countries if I really still need to do both returns?

anybody any clue?

[zyggy 9]

Will show these to hubby tonight this is going to be a confusing file year

tell me about it!

I dunno what to do with mine this year, I'm all confused (hence the visit here!)

Last year I cashed in my RRSP, which was my only "Canadian" income, for around $40k, and I did not live in Canada last year at all. (because of North Carolina confusing state investment laws, I couldn't keep my RRSP in Canada). My US income last year was not even $10k, but I also started my own home based business, so I have quite a lot of business expenses to itemize, so my hubby and I are doing our taxes separately.

I don't know if I should do both a Canadian and a US tax return, or just do a US return and claim my RRSP income on my US forms. The Canadian taxes were already deducted from the $40k obviously, at the 25% flat rate, so I'm not sure if with the tax treaty between the 2 countries if I really still need to do both returns?

anybody any clue?

Reba...

You don't have to file a Canadian return at all.... the 25% is a flat tax.. no return required...

For your 1040, you'll have to claim the money from the cashed RRSP's as other income. You will need to convert the CDN $ to US $ by using the exchange rate on the date that you cashed them. You then can take the 25% tax that Canada took and claim it as a foreign tax credit on Form 1116.

[Reba 2]

thanks, I'll print that out so I can show it to whomever I get to do my taxes. Last year it was an entire day long ordeal because they couldn't figure out what to do with a Canadian and American couple

small towns, gotta love 'em

[cmartyn 0]

40K! Big Pardoo at Rebas place!

[Reba 2]

yeah well, after Revenue Canada took their piece, and then do the conversion to US dollars, there's not a whole lot left

I dumped it into a 5 year CD for lack of anything better to do.

[Reba 2]

well, I went and had my taxes done today at H&R Block, and even with the advice above printed out, they weren't sure what to do with my RRSP income

I have to go back tomorrow to finish it up. They have to find out the currency exchange and whatever.

[zyggy 9]

well, I went and had my taxes done today at H&R Block, and even with the advice above printed out, they weren't sure what to do with my RRSP income

I have to go back tomorrow to finish it up. They have to find out the currency exchange and whatever.

You can find it yourself. Do you know the date that it was cashed... Let me know and I'll get it for you...

[Reba 2]

nah, it was sometime in January last year. They'll have it all done for me today they said. The currency exchange wasn't the only problem, they also didn't know how to report the income. I tried to explain that it was my RRSP and equivalent to 401k and how would they report 401k income, but they still had to research it

[Reba 2]

ok, need help again.

The tax preparer from H&R Block just called to say that for some reason, when they enter my RRSP income on our report, the state of NC says I now owe them nearly $2000! We know this is not right, H&R Block has called the state revenue office, and they're telling them that is what I would owe them.

Can someone shed some light on this? This is not correct, I've already paid the 25% taxes on this in Canada, and with the US Canada tax treaty, I should not be taxed twice on that income. Besides which, it is well under the allowed foreign income of $80k that should not be double taxed (If I understand that rule correctly that is).

How can the state say that I owe them so much money, when I've already paid taxes on this income? We can't afford to have to pay them that much, and as far as I understand the tax treaty, I shouldn't have to pay them anything.

Plus, not only is H&R Block now saying that I owe the state, they're saying our refund from the feds is being considerably decreased as well.

There goes our Scotland trip

Any help would be appreciated if anyone here understands this stuff.

[Flames9_RN 358]

http://forums.serbinski.com/index.php?sid=...69e26b292b2d1cc

Have you posted your question on the above tax forum? The fellow there "Nelson" Is very well informed. I went there and got my info prior to going to jackson hewitt to get my taxes completed.

[zyggy 9]

ok, need help again.

The tax preparer from H&R Block just called to say that for some reason, when they enter my RRSP income on our report, the state of NC says I now owe them nearly $2000! We know this is not right, H&R Block has called the state revenue office, and they're telling them that is what I would owe them.

Can someone shed some light on this? This is not correct, I've already paid the 25% taxes on this in Canada, and with the US Canada tax treaty, I should not be taxed twice on that income. Besides which, it is well under the allowed foreign income of $80k that should not be double taxed (If I understand that rule correctly that is).

How can the state say that I owe them so much money, when I've already paid taxes on this income? We can't afford to have to pay them that much, and as far as I understand the tax treaty, I shouldn't have to pay them anything.

Plus, not only is H&R Block now saying that I owe the state, they're saying our refund from the feds is being considerably decreased as well.

There goes our Scotland trip

Any help would be appreciated if anyone here understands this stuff.

1) The $80k is only for foreign income that is earned while you reside in a foreign country, It does not apply to foreign source income when you reside in the US.

2) The tax treaty only covers double taxation with respect to federal income taxes. It does not apply to state taxes.. Some states do not tax foreign source income, my state one of them. I don't know what the rules are for NC...

And your refund probably went down for two reasons

1) The lump sum amount from your cashing in your RRSP probably significantly raised your AGI which probably put you in a higher tax bracket.

2) There is a cap on the amount of foreign tax credit that can be taken each year.. in addition, some federal deductions (mortgage interest decuction for one) are decreased by the percentage of your income that comes from a foreign source if you itemize.