EI Tax Slip

[ceriserose 1]

You can still file Cdn taxes. My exit taxes were 2004(december). I received EI from Feb to Oct. 2005 My only income for the most part was the EI (and a bit of severence pay carried over from 2004) You may not get much back for 2 months, bu tprobably enough for a good night out!! I think my refund check was over $2000 cdn. And there is a income tax progrom (probably a few) that allows you to file for FREE if u make under a certain amount, and it recognizes non-residents in its software. Think it was quick tax??

I'm really confused now.

Why would I be filing Canadian taxes and reporting world income on that? Won't I be taxed by them just as I'm being taxed by the US?

Don't I recoup the 25% nonresident tax on my US taxes somehow?

I'll check out Serbinski but this makes no sense to me on the face of it...tell me where I might have it wrong.

[ceriserose 1]

Okay I just read Zyggy's comment.

So when one files a Section 217 it sounds like they won't tax you on it?

I tried that link to grab my online EI slip and it's not recognizing that I live in the US. So I guess my day off will be spent on the phone. Blargh.

[ceriserose 1]

I ended up calling the International tax office. Based on my earnings last year it would be a really bad idea to file a 217.

She was also able to give me the EI slip information so at least we can plug the numbers in. She said the slip was in the mail (although I'm sure that's a guess for her...).

At least I didn't spend all day on the phone.

[Flames9_RN 358]

I belive one can us Quick tax for free and see if it is to ur benefit or not to file. I think it was Quick tax I used last yr,and one didnt have to pay unless u were e-filing and you had under a certain amout of income.

[ceriserose 1]

I belive one can us Quick tax for free and see if it is to ur benefit or not to file. I think it was Quick tax I used last yr,and one didnt have to pay unless u were e-filing and you had under a certain amout of income.

Thanks Scott. We do use Quick tax and will play around with it, but from what she said, I was WAY over the certain amount of income so there's no value to it.

I appreciate everyone's answers here.

[zyggy 9]

You can still file Cdn taxes. My exit taxes were 2004(december). I received EI from Feb to Oct. 2005 My only income for the most part was the EI (and a bit of severence pay carried over from 2004) You may not get much back for 2 months, bu tprobably enough for a good night out!! I think my refund check was over $2000 cdn. And there is a income tax progrom (probably a few) that allows you to file for FREE if u make under a certain amount, and it recognizes non-residents in its software. Think it was quick tax??

I'm really confused now.

Why would I be filing Canadian taxes and reporting world income on that? Won't I be taxed by them just as I'm being taxed by the US?

Don't I recoup the 25% nonresident tax on my US taxes somehow?

I'll check out Serbinski but this makes no sense to me on the face of it...tell me where I might have it wrong.

Cerise...

As a non-resident, the Canadian Tax Code states the amount of taxes that you owe them can be determined in one of two ways:

The first way is to just have then take the 25% non-resident tax on Canadian source income and ignore your worldwide income otherwise which I believe is Section 216..

The Second way is to opt to get taxed on your worldwide income based on filing a return as if you were a Canadian resident via Section 217.

Basically, if the amount of tax based on your worldwide income is less that the amount that they took on your Canada source income, you can apply to get the portion of the 25% non-resident tax back. In essence, you have to be under the 25% tax bracket to make it work. Or you really need no or very little US income.

Or in another way.. if your worldwide income causes you to owe more than 25% tax, all you owe Canada is the 25%. If your worldwide income causes you to owe less than 25%, you get a refund between the amount you owe and the amount they collected.

Even if the International Tax Office told you you wouldn't qualify, I would probably do the Section 217 anyways to make sure. You never know until you do the numbers. Remember, your spouses income DOES NOT come into play here...

Rememebr that you have to report ANY Canada source income on your US 1040, but you can take a credit of those taxes by filing for a foreign tax credit. The US/Canada tax treaty does not allow for ANY double taxation.

Edited February 19, 2007 by zyggy

[ceriserose 1]

You can still file Cdn taxes. My exit taxes were 2004(december). I received EI from Feb to Oct. 2005 My only income for the most part was the EI (and a bit of severence pay carried over from 2004) You may not get much back for 2 months, bu tprobably enough for a good night out!! I think my refund check was over $2000 cdn. And there is a income tax progrom (probably a few) that allows you to file for FREE if u make under a certain amount, and it recognizes non-residents in its software. Think it was quick tax??

I'm really confused now.

Why would I be filing Canadian taxes and reporting world income on that? Won't I be taxed by them just as I'm being taxed by the US?

Don't I recoup the 25% nonresident tax on my US taxes somehow?

I'll check out Serbinski but this makes no sense to me on the face of it...tell me where I might have it wrong.

Cerise...

t

As a non-resident, the Canadian Tax Code states the amount of taxes that you owe them can be determined in one of two ways:

The first way is to just have then take the 25% non-resident tax on Canadian source income and ignore your worldwide income otherwise which I believe is Section 216..

The Second way is to opt to get taxed on your worldwide income based on filing a return as if you were a Canadian resident via Section 217.

Basically, if the amount of tax based on your worldwide income is less that the amount that they took on your Canada source income, you can apply to get the portion of the 25% non-resident tax back. In essence, you have to be under the 25% tax bracket to make it work. Or you really need no or very little US income.

Or in another way.. if your worldwide income causes you to owe more than 25% tax, all you owe Canada is the 25%. If your worldwide income causes you to owe less than 25%, you get a refund between the amount you owe and the amount they collected.

Even if the International Tax Office told you you wouldn't qualify, I would probably do the Section 217 anyways to make sure. You never know until you do the numbers. Remember, your spouses income DOES NOT come into play here...

Rememebr that you have to report ANY Canada source income on your US 1040, but you can take a credit of those taxes by filing for a foreign tax credit. The US/Canada tax treaty does not allow for ANY double taxation.

Thanks Zyggy. I'm familiar with the declaration on the 1040 along with the foreign tax credit...I withdrew an RRSP in late 2005 so have already run hat exercise. My confusion arose because I couldn't see a purpose in filing Canadian taxes when I know that there is no double taxation...but now it's clearer.

So essentially what I'm reading here is that even if my total income last year moves me to a higher than 25% tax bracket, because the US is taxing me, Canada won't? And that the 25% I've already paid on my EI is all they'll take? Is that correct?

I'll run the numbers on the 217. Because I love math soooo much.

Seriously, though, thanks! Y'all are great!

[zyggy 9]

You can still file Cdn taxes. My exit taxes were 2004(december). I received EI from Feb to Oct. 2005 My only income for the most part was the EI (and a bit of severence pay carried over from 2004) You may not get much back for 2 months, bu tprobably enough for a good night out!! I think my refund check was over $2000 cdn. And there is a income tax progrom (probably a few) that allows you to file for FREE if u make under a certain amount, and it recognizes non-residents in its software. Think it was quick tax??

I'm really confused now.

Why would I be filing Canadian taxes and reporting world income on that? Won't I be taxed by them just as I'm being taxed by the US?

Don't I recoup the 25% nonresident tax on my US taxes somehow?

I'll check out Serbinski but this makes no sense to me on the face of it...tell me where I might have it wrong.

Cerise...

t

As a non-resident, the Canadian Tax Code states the amount of taxes that you owe them can be determined in one of two ways:

The first way is to just have then take the 25% non-resident tax on Canadian source income and ignore your worldwide income otherwise which I believe is Section 216..

The Second way is to opt to get taxed on your worldwide income based on filing a return as if you were a Canadian resident via Section 217.

Basically, if the amount of tax based on your worldwide income is less that the amount that they took on your Canada source income, you can apply to get the portion of the 25% non-resident tax back. In essence, you have to be under the 25% tax bracket to make it work. Or you really need no or very little US income.

Or in another way.. if your worldwide income causes you to owe more than 25% tax, all you owe Canada is the 25%. If your worldwide income causes you to owe less than 25%, you get a refund between the amount you owe and the amount they collected.

Even if the International Tax Office told you you wouldn't qualify, I would probably do the Section 217 anyways to make sure. You never know until you do the numbers. Remember, your spouses income DOES NOT come into play here...

Rememebr that you have to report ANY Canada source income on your US 1040, but you can take a credit of those taxes by filing for a foreign tax credit. The US/Canada tax treaty does not allow for ANY double taxation.

Thanks Zyggy. I'm familiar with the declaration on the 1040 along with the foreign tax credit...I withdrew an RRSP in late 2005 so have already run hat exercise. My confusion arose because I couldn't see a purpose in filing Canadian taxes when I know that there is no double taxation...but now it's clearer.

So essentially what I'm reading here is that even if my total income last year moves me to a higher than 25% tax bracket, because the US is taxing me, Canada won't? And that the 25% I've already paid on my EI is all they'll take? Is that correct?

I'll run the numbers on the 217. Because I love math soooo much.

Seriously, though, thanks! Y'all are great!

Exactly... You got it...

[ceriserose 1]

You can still file Cdn taxes. My exit taxes were 2004(december). I received EI from Feb to Oct. 2005 My only income for the most part was the EI (and a bit of severence pay carried over from 2004) You may not get much back for 2 months, bu tprobably enough for a good night out!! I think my refund check was over $2000 cdn. And there is a income tax progrom (probably a few) that allows you to file for FREE if u make under a certain amount, and it recognizes non-residents in its software. Think it was quick tax??

I'm really confused now.

Why would I be filing Canadian taxes and reporting world income on that? Won't I be taxed by them just as I'm being taxed by the US?

Don't I recoup the 25% nonresident tax on my US taxes somehow?

I'll check out Serbinski but this makes no sense to me on the face of it...tell me where I might have it wrong.

Cerise...

t

As a non-resident, the Canadian Tax Code states the amount of taxes that you owe them can be determined in one of two ways:

The first way is to just have then take the 25% non-resident tax on Canadian source income and ignore your worldwide income otherwise which I believe is Section 216..

The Second way is to opt to get taxed on your worldwide income based on filing a return as if you were a Canadian resident via Section 217.

Basically, if the amount of tax based on your worldwide income is less that the amount that they took on your Canada source income, you can apply to get the portion of the 25% non-resident tax back. In essence, you have to be under the 25% tax bracket to make it work. Or you really need no or very little US income.

Or in another way.. if your worldwide income causes you to owe more than 25% tax, all you owe Canada is the 25%. If your worldwide income causes you to owe less than 25%, you get a refund between the amount you owe and the amount they collected.

Even if the International Tax Office told you you wouldn't qualify, I would probably do the Section 217 anyways to make sure. You never know until you do the numbers. Remember, your spouses income DOES NOT come into play here...

Rememebr that you have to report ANY Canada source income on your US 1040, but you can take a credit of those taxes by filing for a foreign tax credit. The US/Canada tax treaty does not allow for ANY double taxation.

Thanks Zyggy. I'm familiar with the declaration on the 1040 along with the foreign tax credit...I withdrew an RRSP in late 2005 so have already run hat exercise. My confusion arose because I couldn't see a purpose in filing Canadian taxes when I know that there is no double taxation...but now it's clearer.

So essentially what I'm reading here is that even if my total income last year moves me to a higher than 25% tax bracket, because the US is taxing me, Canada won't? And that the 25% I've already paid on my EI is all they'll take? Is that correct?

I'll run the numbers on the 217. Because I love math soooo much.

Seriously, though, thanks! Y'all are great!

Exactly... You got it...

Awesome. Thanks for the confirmation.

[together2love 0]

I ended up calling the International tax office. Based on my earnings last year it would be a really bad idea to file a 217.

She was also able to give me the EI slip information so at least we can plug the numbers in. She said the slip was in the mail (although I'm sure that's a guess for her...).

At least I didn't spend all day on the phone.

I just called the Interstate claims unit about this T4E slip and not being able to get it online because we are in the states. She said that if you put in the information again, but put Ontario (ON) as the province, it will bring up your T4E slip. . . and she was right, just to let everyone know it is possible to print online.

[ceriserose 1]

I ended up calling the International tax office. Based on my earnings last year it would be a really bad idea to file a 217.

She was also able to give me the EI slip information so at least we can plug the numbers in. She said the slip was in the mail (although I'm sure that's a guess for her...).

At least I didn't spend all day on the phone.

I just called the Interstate claims unit about this T4E slip and not being able to get it online because we are in the states. She said that if you put in the information again, but put Ontario (ON) as the province, it will bring up your T4E slip. . . and she was right, just to let everyone know it is possible to print online.

Thanks for that. I still can't get mine online because I wasn't assigned a code from EI. But good information in case I can swing something.

[Flames9_RN 358]

Yes, when I applied online from the USA for EI, one had to put down Ontario for 1 part. This was done to "fool" the computer.

[Buttons 0]

I'm waiting too, just want to get the last taxes done.