Filing 2006 Canadian Income Taxes

[no one 0]

you can file as either single, depending *when* you got married, or as "separated"

I filed my last return in Canada as "separated" and did not need to declare my husband's US income whatsoever. The lady who did mine at H&R Block was very knowledgable about what to do with it. Unlike the people I've met here at H&R Block in the US who really had no clue what they were supposed to do with our taxes here.

Hmm... we got married Oct 2006, but it seems as though it'd be easier if I file my last return in Canada as "single", as my husband's a USC and doesn't have any ties to Canada at all.

[together2love 0]

Zyggy is correct. After phoning the international tax office you would file as 'married', entering your spouses name, but under their SIN, just put 'US Citizen' and state that they are a non-resident of Canada and therefore you don't have to claim any of their income on the T1.

[jen&darcy 0]

Hopefully Darcy's tax accountant in Canada knows what he is doing. We have enough problems with Revenue Canada we don't need anymore.

Now if I could just figure out the US side.

[antda 13]

Hi Amarceau,

Good luck on your immigration journey. From my experience, I filed as "married", as after all I am married. Why would somebody file as "single" if they were "married"? It doesn't make sense that way and it would be a lie for anyone to file single if they were married. Likewise, my husband is the USC too and never worked in Canada. On the space where it asks for the SIN, I just wrote "None" and wrote that they were a USC. I also sent in the NR-73 form (declaring leaving Canada form that explained further my situation/non-existent ties to Canada), along with my final 2006 Canadian tax return forms, and a copy of my marriage certificate (to show that I am indeed married and for them to update their records for me as being married and living in the USA, since the Canadian government has my old records as being single and living in Canada).

Phew...now I'm forever done with the Canadian government tax-wise! What a waste of time and postage filling out those forms..grr....

Hope this helps.

Ant

I'm hope someone has already done this & can give me a little guidance...

I'm getting ready to file my 2006 taxes. Since I'm married, do I file as married or single? My husband is the USC, I'm the Canadian. He's obviously never worked in Canada, so has no Canadian income. I'm just confused because my paperwork from the Gov't is in my Maiden name, but my T4's from my employer are in my married name.

What to do?

I tried googling it and spent about an hour looking around and found nothing.. I figured someone here has probably already filed taxes and knows.

Thanks in advance for any help.

Edited March 14, 2007 by AntandD

[Flames9_RN 358]

See i just don't understand why people think its just a hassle being deemed a non resident. One doesn't have to fill out NR-73, if they want you to they will send u a letter stating to. All one simply has to do, is fill out ur cdn taxes as norm for the most part, as well as check off 1 box at the first page, and the date one left canada. You can't claim any credits for ur American spouse, so it should be a fairly simple return.

[together2love 0]

See i just don't understand why people think its just a hassle being deemed a non resident. One doesn't have to fill out NR-73, if they want you to they will send u a letter stating to. All one simply has to do, is fill out ur cdn taxes as norm for the most part, as well as check off 1 box at the first page, and the date one left canada. You can't claim any credits for ur American spouse, so it should be a fairly simple return.

And then file the paper return to Ottawa.

[jen&darcy 0]

Darcy's accountant in Kelowna is filing him as single. I hope that is right. I guess the reasoning is because he was 'single' when he left Canada to come here on his K-1. I probably should have Darcy question that when the return comes for him to sign it and mail back in.

Edited March 15, 2007 by jen&darcy

[zyggy 9]

Darcy's accountant in Kelowna is filing him as single. I hope that is right. I guess the reasoning is because he was 'single' when he left Canada to come here on his K-1. I probably should have Darcy question that when the return comes for him to sign it and mail back in.

It's not your status when you left that was important.. it's his marital status as of Dec. 31. If you were married before December 31, you have to file as married... If you were married after Dec 31, you can file as single...

You'll be sending your T1 to the International Tax Services Office anyways, so they know that you won't be eligible for any credits...

From CRA..

Marital status

Check the box that applied to your status on December 31, 2006. Check "Married" if you had a spouse (see below), or "Living common law" if you had a common-law partner (see below). You still have a spouse or common-law partner if you were living apart for reasons other than a breakdown in your relationship. Check one of the other boxes only if neither of the first two applied.

But upon further reading on CRA Bulletin T4056, one could argue that it should be the marital status the date that he left Canada as the leaving Canada return is only meant to reflect your tax status as of the date that you left... But if you opt to do a Section 217 return, you would have to reflect his marital status as of December 31...

BTW.. Is the accountant looking at Section 217 if your husband received EI income... it may result in him getting a larger refund...

Edited March 15, 2007 by zyggy

[jen&darcy 0]

Darcy's accountant in Kelowna is filing him as single. I hope that is right. I guess the reasoning is because he was 'single' when he left Canada to come here on his K-1. I probably should have Darcy question that when the return comes for him to sign it and mail back in.

It's not your status when you left that was important.. it's his marital status as of Dec. 31. If you were married before December 31, you have to file as married... If you were married after Dec 31, you can file as single...

You'll be sending your T1 to the International Tax Services Office anyways, so they know that you won't be eligible for any credits...

From CRA..

Marital status

Check the box that applied to your status on December 31, 2006. Check "Married" if you had a spouse (see below), or "Living common law" if you had a common-law partner (see below). You still have a spouse or common-law partner if you were living apart for reasons other than a breakdown in your relationship. Check one of the other boxes only if neither of the first two applied.

But upon further reading on CRA Bulletin T4056, one could argue that it should be the marital status the date that he left Canada as the leaving Canada return is only meant to reflect your tax status as of the date that you left... But if you opt to do a Section 217 return, you would have to reflect his marital status as of December 31...

BTW.. Is the accountant looking at Section 217 if your husband received EI income... it may result in him getting a larger refund...

Thanks Zyggy. I am going to email his accountant tomorrow about this. He didn't have any EI income. He had two jobs in Canada until he left for the US in September 2006 on his K-1 visa.

I am still hung up on the US side. I have talked to the IRS three times and still not convinced on the Foreign Income Tax Exclusion (Form 2555). I think I am going to take my taxes to H&R Block and see if that makes me feel better.

I hate taxes and I am an accountant!!!

[Flames9_RN 358]

Hope ur H&R block guys are better than the one I saw in Arlington VA. I even made an appt with their CDn specialist!! He had not even heard of form 2555 or form 8891. Needless to say I thanked him, and walked out,lol

[no one 0]

Hehe... in the end, my Dad mailed me a draft copy of my 2006 tax return. One of my friends... her father did the same for her. Aren't Dads great (sometimes)?

[jen&darcy 0]

Hope ur H&R block guys are better than the one I saw in Arlington VA. I even made an appt with their CDn specialist!! He had not even heard of form 2555 or form 8891. Needless to say I thanked him, and walked out,lol

That's encouraging! Ok maybe I will find somebody else!

[zyggy 9]

Darcy's accountant in Kelowna is filing him as single. I hope that is right. I guess the reasoning is because he was 'single' when he left Canada to come here on his K-1. I probably should have Darcy question that when the return comes for him to sign it and mail back in.

It's not your status when you left that was important.. it's his marital status as of Dec. 31. If you were married before December 31, you have to file as married... If you were married after Dec 31, you can file as single...

You'll be sending your T1 to the International Tax Services Office anyways, so they know that you won't be eligible for any credits...

From CRA..

Marital status

Check the box that applied to your status on December 31, 2006. Check "Married" if you had a spouse (see below), or "Living common law" if you had a common-law partner (see below). You still have a spouse or common-law partner if you were living apart for reasons other than a breakdown in your relationship. Check one of the other boxes only if neither of the first two applied.

But upon further reading on CRA Bulletin T4056, one could argue that it should be the marital status the date that he left Canada as the leaving Canada return is only meant to reflect your tax status as of the date that you left... But if you opt to do a Section 217 return, you would have to reflect his marital status as of December 31...

BTW.. Is the accountant looking at Section 217 if your husband received EI income... it may result in him getting a larger refund...

Thanks Zyggy. I am going to email his accountant tomorrow about this. He didn't have any EI income. He had two jobs in Canada until he left for the US in September 2006 on his K-1 visa.

I am still hung up on the US side. I have talked to the IRS three times and still not convinced on the Foreign Income Tax Exclusion (Form 2555). I think I am going to take my taxes to H&R Block and see if that makes me feel better.

I hate taxes and I am an accountant!!!

Trust me... you can do the 2555... It's been done by tons of people in the past...

and I work at H&R Block and am their Foreign Tax Expert in a premium office... Amke sure that you go to a premium office... But if you need help, drop me a line...

[Flames9_RN 358]

I'm not saying all H&R blocks are bad, just that 1 was. I phoned and they set up the appt for me with their Cdn/USA so called expert, which he sure was not!! Like all businesses, some good people, some not soo good.

[Flames9_RN 358]

I cashed out a pile of RRSP last yr, now trying to figure out how to include that in my USA taxes. I have been filing form 8891. And Canada did deduct the 25% tax. I hate taxes