Filing 2006 Canadian Income Taxes

[zyggy 9]

I'll take 25% of your increased refund ... ok not really.. but glad to be of service...

[knowledge 0]

I'll take 25% of your increased refund ... ok not really.. but glad to be of service...

God Bless you Ziggy, we owe you!!!

[Dusy 0]

Okay.. this makes a little more sense...

1) Yes.. you do have to include your EI income on your US income taxes that was earned in 2006... However, you can get a Foreign Tax Credit for the 25% non-resident tax that Canada takes... File Form 1113 to get the credit on your 1040..

2) Were your investments in an RRSP... if so, you would have to file Form 8891 the amount to place on the 1040...

3) Any earned income that you earned in 2006 while you were still in Canada is excludable.. You use Form 2555 to exclude the income...

ANy other questions, ask away...

Zyggy,

Well, I booked an appointment with H&R Block. I asked if they did cross border income tax, and there happens to be a Canadian specialist. Sure hope so. I think our US taxes will have to be completely redone. Good thing they weren't mailed out yet.

1) I'm so glad they weren't mailed out. The T4E wasn't put on the US taxes. btw you mentioned form 1113 to be filled out. Is that the form number or is it 1116?

2) The investment I got the N4 for are non-registered and not RRSP. Is there a specific form that would go with that?? Also, I do have RRSPs, am I supposed to be getting something for that?

3) I also didn't think that the income I made while still in Canada had to be put on the 1040 at all, excludable or not. I sure hope that H&R Block lady knows what's she's doing.

No more questions for now. I will let H&R do the work now. I thank you very much for the help. I really do appreciate it. Take care

Ok, Zyggy. Me again. I'm thinking I should start a new topic about filing 2006 USA Income Taxes.

Here's a recap. I am the Canadian Citizen, my husband the US citizen. He has never lived in Canada. I moved here June 24th of 2006. Got my green card in September. I worked in Canada from Jan to June 2006 (earning way less than 80000 dollars a year). I received EI benefits only since being in the States. I ended up having to go in Canada to do my Canadian taxes (which is fine) and am having my (our) US taxes done by H&R Block in the states. Now, after going back and forth with this lady, she did our taxes and says it's better for us to do them married but separately because we would be getting more back. In doing them separately, she is NOT adding my EI income on the taxes and she is not filling out a form 2555 because she said I either have to be a US citizen or have lived in the states for (I think she said) 360 days. But she did add my income to my husbands income putting him (us) in a higher bracket. So, my T4E is neither on my Canadian Income Tax or our US income tax. Now, I'm not comfortable with that at all. She said " I'd just sit on it". She did calculate the taxes both ways (joint and separate). I think she did form 1116 as joint, but with that we would have to owe more. So, is she supposed to do a 2555? Your help in this matter is greatly appreciated, thanks again.

ps I'm thinking of fedexing our income tax slips to wherever your office is, with a check included so you can do our taxes lol Really, seriously, I am.

[Brunette 0]

There needs to be some simplified guide on how to file US taxes for new residents. I'm so confused with everyone's post.

Hopefully, someone can help me. In 2006, I worked in Canada for the first three months. Entered the US on April 1 with my Green Card. Collected EI from Canada for four months, and then was employed in the states for the last five months. Here's what I'm going to be doing:

1) Filing a 1040 jointly with my husband.

2) Submitting 2555 Foreign Income for the income I made in Canada for the first three months, as well as the EI income I received while living in the US.

3) Submitting 8891 for the RRSPs I cashed out and paid 25% non-resident taxes on.

4) Submitting a 1116 Foreign Tax Credit for the the taxes I paid to Canada and the 25% non-resident tax I paid when I collected EI and cashed in my RRSPs.

Have I got this done pat? Am I missing anything important?

Thanks,

SB

[zyggy 9]

Okay.. this makes a little more sense...

1) Yes.. you do have to include your EI income on your US income taxes that was earned in 2006... However, you can get a Foreign Tax Credit for the 25% non-resident tax that Canada takes... File Form 1113 to get the credit on your 1040..

2) Were your investments in an RRSP... if so, you would have to file Form 8891 the amount to place on the 1040...

3) Any earned income that you earned in 2006 while you were still in Canada is excludable.. You use Form 2555 to exclude the income...

ANy other questions, ask away...

Zyggy,

Well, I booked an appointment with H&R Block. I asked if they did cross border income tax, and there happens to be a Canadian specialist. Sure hope so. I think our US taxes will have to be completely redone. Good thing they weren't mailed out yet.

1) I'm so glad they weren't mailed out. The T4E wasn't put on the US taxes. btw you mentioned form 1113 to be filled out. Is that the form number or is it 1116?

2) The investment I got the N4 for are non-registered and not RRSP. Is there a specific form that would go with that?? Also, I do have RRSPs, am I supposed to be getting something for that?

3) I also didn't think that the income I made while still in Canada had to be put on the 1040 at all, excludable or not. I sure hope that H&R Block lady knows what's she's doing.

No more questions for now. I will let H&R do the work now. I thank you very much for the help. I really do appreciate it. Take care

Ok, Zyggy. Me again. I'm thinking I should start a new topic about filing 2006 USA Income Taxes.

Here's a recap. I am the Canadian Citizen, my husband the US citizen. He has never lived in Canada. I moved here June 24th of 2006. Got my green card in September. I worked in Canada from Jan to June 2006 (earning way less than 80000 dollars a year). I received EI benefits only since being in the States. I ended up having to go in Canada to do my Canadian taxes (which is fine) and am having my (our) US taxes done by H&R Block in the states. Now, after going back and forth with this lady, she did our taxes and says it's better for us to do them married but separately because we would be getting more back. In doing them separately, she is NOT adding my EI income on the taxes and she is not filling out a form 2555 because she said I either have to be a US citizen or have lived in the states for (I think she said) 360 days. But she did add my income to my husbands income putting him (us) in a higher bracket. So, my T4E is neither on my Canadian Income Tax or our US income tax. Now, I'm not comfortable with that at all. She said " I'd just sit on it". She did calculate the taxes both ways (joint and separate). I think she did form 1116 as joint, but with that we would have to owe more. So, is she supposed to do a 2555? Your help in this matter is greatly appreciated, thanks again.

ps I'm thinking of fedexing our income tax slips to wherever your office is, with a check included so you can do our taxes lol Really, seriously, I am.

Ok.. she's doing them all wrong.. but I'm not surprised...

1) You have to file a US return..

2) The money that you earned while you were still in Canada is excludable.. File Form 2555 to exclude the income that you made in Canada. The income that you made in Canada must be reported on Line 7 of your tax return. You ARE eligible to file the 2555 because you lived in Canada for 330 days in ANY 12 month period... it does NOT have to be in the current tax year... It could be 330 days from April 2005 to April 2006.. if that was the case, you can exclude the income in that period of time...

3) You must report the EI income that you made on Line 7 of your tax return as well, but you have to File a Form 1116 to take a foreign tax credit on the 25% non-resident tax that Canada takes on it... or you can take the entire 25% as an itemized deduction...

This may indeed be one of the cases where it would better to file seperately... but realize this.. if your husband itemizes his deductions, you must as well.. if you have 0 itemized deductions.. you'd be paying a lot in this case... or taking the 25% foreign tax as an itemized decution may work out better for you... I have a feeling that if you included your EI income.. filing separately may not look so good... Actually I think I can go out an a limb and say that you'd be paying quite a bit...

You are in a pretty complicated tax situation.. I know, I was there two years ago doing it with my wife... it is VERY important that you have someone that is extremely competent to handle it... If you have more questions, I am here to assist...

Edited April 6, 2007 by zyggy

[zyggy 9]

There needs to be some simplified guide on how to file US taxes for new residents. I'm so confused with everyone's post.

Hopefully, someone can help me. In 2006, I worked in Canada for the first three months. Entered the US on April 1 with my Green Card. Collected EI from Canada for four months, and then was employed in the states for the last five months. Here's what I'm going to be doing:

1) Filing a 1040 jointly with my husband.

2) Submitting 2555 Foreign Income for the income I made in Canada for the first three months, as well as the EI income I received while living in the US.

3) Submitting 8891 for the RRSPs I cashed out and paid 25% non-resident taxes on.

4) Submitting a 1116 Foreign Tax Credit for the the taxes I paid to Canada and the 25% non-resident tax I paid when I collected EI and cashed in my RRSPs.

Have I got this done pat? Am I missing anything important?

Thanks,

SB

Sounds like you've got it covered... Your EI Income is NOT covered under the 2555... You have to report it as income on Line 7 and take the foreign tax credit on that as well..

You may want to consider filing a Section 217 return in Canada to get some of that 25% tax back... depending on the amount of the RRSP that you cashed out...

[Dusy 0]

Okay.. this makes a little more sense...

1) Yes.. you do have to include your EI income on your US income taxes that was earned in 2006... However, you can get a Foreign Tax Credit for the 25% non-resident tax that Canada takes... File Form 1113 to get the credit on your 1040..

2) Were your investments in an RRSP... if so, you would have to file Form 8891 the amount to place on the 1040...

3) Any earned income that you earned in 2006 while you were still in Canada is excludable.. You use Form 2555 to exclude the income...

ANy other questions, ask away...

Zyggy,

Well, I booked an appointment with H&R Block. I asked if they did cross border income tax, and there happens to be a Canadian specialist. Sure hope so. I think our US taxes will have to be completely redone. Good thing they weren't mailed out yet.

1) I'm so glad they weren't mailed out. The T4E wasn't put on the US taxes. btw you mentioned form 1113 to be filled out. Is that the form number or is it 1116?

2) The investment I got the N4 for are non-registered and not RRSP. Is there a specific form that would go with that?? Also, I do have RRSPs, am I supposed to be getting something for that?

3) I also didn't think that the income I made while still in Canada had to be put on the 1040 at all, excludable or not. I sure hope that H&R Block lady knows what's she's doing.

No more questions for now. I will let H&R do the work now. I thank you very much for the help. I really do appreciate it. Take care

Ok, Zyggy. Me again. I'm thinking I should start a new topic about filing 2006 USA Income Taxes.

Here's a recap. I am the Canadian Citizen, my husband the US citizen. He has never lived in Canada. I moved here June 24th of 2006. Got my green card in September. I worked in Canada from Jan to June 2006 (earning way less than 80000 dollars a year). I received EI benefits only since being in the States. I ended up having to go in Canada to do my Canadian taxes (which is fine) and am having my (our) US taxes done by H&R Block in the states. Now, after going back and forth with this lady, she did our taxes and says it's better for us to do them married but separately because we would be getting more back. In doing them separately, she is NOT adding my EI income on the taxes and she is not filling out a form 2555 because she said I either have to be a US citizen or have lived in the states for (I think she said) 360 days. But she did add my income to my husbands income putting him (us) in a higher bracket. So, my T4E is neither on my Canadian Income Tax or our US income tax. Now, I'm not comfortable with that at all. She said " I'd just sit on it". She did calculate the taxes both ways (joint and separate). I think she did form 1116 as joint, but with that we would have to owe more. So, is she supposed to do a 2555? Your help in this matter is greatly appreciated, thanks again.

ps I'm thinking of fedexing our income tax slips to wherever your office is, with a check included so you can do our taxes lol Really, seriously, I am.

Ok.. she's doing them all wrong.. but I'm not surprised...

1) You have to file a US return..

2) The money that you earned while you were still in Canada is excludable.. File Form 2555 to exclude the income that you made in Canada. The income that you made in Canada must be reported on Line 7 of your tax return. You ARE eligible to file the 2555 because you lived in Canada for 330 days in ANY 12 month period... it does NOT have to be in the current tax year... It could be 330 days from April 2005 to April 2006.. if that was the case, you can exclude the income in that period of time...

3) You must report the EI income that you made on Line 7 of your tax return as well, but you have to File a Form 1116 to take a foreign tax credit on the 25% non-resident tax that Canada takes on it... or you can take the entire 25% as an itemized deduction...

This may indeed be one of the cases where it would better to file seperately... but realize this.. if your husband itemizes his deductions, you must as well.. if you have 0 itemized deductions.. you'd be paying a lot in this case... or taking the 25% foreign tax as an itemized decution may work out better for you... I have a feeling that if you included your EI income.. filing separately may not look so good... Actually I think I can go out an a limb and say that you'd be paying quite a bit...

You are in a pretty complicated tax situation.. I know, I was there two years ago doing it with my wife... it is VERY important that you have someone that is extremely competent to handle it... If you have more questions, I am here to assist...

I don't know how to use only the last quote, so sorry about all the attached quotes.

I know nothing about income tax, but one thing I did know is that she was not right. And believe me, I will most likely have more questions after this one.

You say I have to file a US return. Do I have to file it even though I didn't work in the US? How about if we decide to file jointly, do I still have to do a US return?? Thank you so much for your help.

[zyggy 9]

Okay.. this makes a little more sense...

1) Yes.. you do have to include your EI income on your US income taxes that was earned in 2006... However, you can get a Foreign Tax Credit for the 25% non-resident tax that Canada takes... File Form 1113 to get the credit on your 1040..

2) Were your investments in an RRSP... if so, you would have to file Form 8891 the amount to place on the 1040...

3) Any earned income that you earned in 2006 while you were still in Canada is excludable.. You use Form 2555 to exclude the income...

ANy other questions, ask away...

Zyggy,

Well, I booked an appointment with H&R Block. I asked if they did cross border income tax, and there happens to be a Canadian specialist. Sure hope so. I think our US taxes will have to be completely redone. Good thing they weren't mailed out yet.

1) I'm so glad they weren't mailed out. The T4E wasn't put on the US taxes. btw you mentioned form 1113 to be filled out. Is that the form number or is it 1116?

2) The investment I got the N4 for are non-registered and not RRSP. Is there a specific form that would go with that?? Also, I do have RRSPs, am I supposed to be getting something for that?

3) I also didn't think that the income I made while still in Canada had to be put on the 1040 at all, excludable or not. I sure hope that H&R Block lady knows what's she's doing.

No more questions for now. I will let H&R do the work now. I thank you very much for the help. I really do appreciate it. Take care

Ok, Zyggy. Me again. I'm thinking I should start a new topic about filing 2006 USA Income Taxes.

Here's a recap. I am the Canadian Citizen, my husband the US citizen. He has never lived in Canada. I moved here June 24th of 2006. Got my green card in September. I worked in Canada from Jan to June 2006 (earning way less than 80000 dollars a year). I received EI benefits only since being in the States. I ended up having to go in Canada to do my Canadian taxes (which is fine) and am having my (our) US taxes done by H&R Block in the states. Now, after going back and forth with this lady, she did our taxes and says it's better for us to do them married but separately because we would be getting more back. In doing them separately, she is NOT adding my EI income on the taxes and she is not filling out a form 2555 because she said I either have to be a US citizen or have lived in the states for (I think she said) 360 days. But she did add my income to my husbands income putting him (us) in a higher bracket. So, my T4E is neither on my Canadian Income Tax or our US income tax. Now, I'm not comfortable with that at all. She said " I'd just sit on it". She did calculate the taxes both ways (joint and separate). I think she did form 1116 as joint, but with that we would have to owe more. So, is she supposed to do a 2555? Your help in this matter is greatly appreciated, thanks again.

ps I'm thinking of fedexing our income tax slips to wherever your office is, with a check included so you can do our taxes lol Really, seriously, I am.

Ok.. she's doing them all wrong.. but I'm not surprised...

1) You have to file a US return..

2) The money that you earned while you were still in Canada is excludable.. File Form 2555 to exclude the income that you made in Canada. The income that you made in Canada must be reported on Line 7 of your tax return. You ARE eligible to file the 2555 because you lived in Canada for 330 days in ANY 12 month period... it does NOT have to be in the current tax year... It could be 330 days from April 2005 to April 2006.. if that was the case, you can exclude the income in that period of time...

3) You must report the EI income that you made on Line 7 of your tax return as well, but you have to File a Form 1116 to take a foreign tax credit on the 25% non-resident tax that Canada takes on it... or you can take the entire 25% as an itemized deduction...

This may indeed be one of the cases where it would better to file seperately... but realize this.. if your husband itemizes his deductions, you must as well.. if you have 0 itemized deductions.. you'd be paying a lot in this case... or taking the 25% foreign tax as an itemized decution may work out better for you... I have a feeling that if you included your EI income.. filing separately may not look so good... Actually I think I can go out an a limb and say that you'd be paying quite a bit...

You are in a pretty complicated tax situation.. I know, I was there two years ago doing it with my wife... it is VERY important that you have someone that is extremely competent to handle it... If you have more questions, I am here to assist...

I don't know how to use only the last quote, so sorry about all the attached quotes.

I know nothing about income tax, but one thing I did know is that she was not right. And believe me, I will most likely have more questions after this one.

You say I have to file a US return. Do I have to file it even though I didn't work in the US? How about if we decide to file jointly, do I still have to do a US return?? Thank you so much for your help.

Since you are a permanent residident of the US, yes, you must file a US tax return... even if you earned no income here...

If you file jointly with your husband, you have filed a US tax return... That's why it's joint... (yours and your husband's).. the US is not like Canada where each spouse files their own return. In the US, it is preferred that married couples file jointly and they have put things in the US tax code to encourage that...

[Canuck Carrie 1]

If your spouse is not resident in Canada, you do not include their income on the Canada T1. For their SIN you put US Citizen and include a statement in your return that your spouse is not a resident of Canada.

Oh yes, leave it to me to do this the day before the filing date

Just to confirm... I put his info on the front but I do not include his income anywhere else it asks for spouse income?

[Flames9_RN 358]

exactly!! You have read on here, that some put in thweir USA spouses income, but that is only done if if ur using a software program to "fool" the tax program to ensure it doesnt give u any credits/deductions for ur spouse, as he isn't entitled to any!!

[MissStacey 1]

Zyggy- You are the Tax God!

[Canuck Carrie 1]

exactly!! You have read on here, that some put in thweir USA spouses income, but that is only done if if ur using a software program to "fool" the tax program to ensure it doesnt give u any credits/deductions for ur spouse, as he isn't entitled to any!!

This thread is confusing since it strayed to filing US taxes as well

I think I got it now, I only put him on page 1, don't include any of his income and don't claim any spouse credits.

Anyone want $20 via Paypal to make sure I've done this right

I had no property, no RRSPs, no kids, small income from working in Canada until March 2006 and then EI while in the States, the amount of paperwork in unreal for 3 months of residency.

**I must be doing something wrong, my income including EI was $18,000. I've done a rough draft of the return and it says I owe over $1000.

There is no "premium" tax service here, we're in the middle of nowhere. Is there something online I can purchase that can do this for me?

Edited April 26, 2007 by Canuck Carrie

[Allie 5]

I have a taxation question I'm going to eventually need info on.

At present I collect a pension from a compnay I worked 30 yrs for. It's direct deposited monthly into my bank acct. in Canada.

How is receiving this going to work when I move State side?Will I be able to leave it as is going into my acct. in Canada and at yrs. end file Can. income taxes?

Or is it going to be mandatory that I shift it to a bank here and then claim US income tax on it. Also if I left it as is being deposited in Canada would I have to claim it as foreign income.

Any info. or advice on how this works would be appreciated

[Flames9_RN 358]

no clue on the tax issues!

Can ur Cdn comapny direct deposit it into a USA bank Acct? If not, just use Customhouse.com to transfer it from ur CDn acct ot USA acct. No fees what so ever!! And usually a much better exchange rate that what a bank will give. Also check out RBC, I belive they have a uSA branch called RBC Ventura, that one can trasfer easily between, no clue on exchange rate though. I have used Custom house for quite awhile, some for smal transfers and soem very many thousands of $$. Customer service is top notch as well. Head office is in Victoria BC

[ceriserose 1]

I have a taxation question I'm going to eventually need info on.

At present I collect a pension from a compnay I worked 30 yrs for. It's direct deposited monthly into my bank acct. in Canada.

How is receiving this going to work when I move State side?Will I be able to leave it as is going into my acct. in Canada and at yrs. end file Can. income taxes?

Or is it going to be mandatory that I shift it to a bank here and then claim US income tax on it. Also if I left it as is being deposited in Canada would I have to claim it as foreign income.

Any info. or advice on how this works would be appreciated

Here's a thread on pensions in general. Company pensions are usually treated in the same way as any foreign income (taxed 25% non-resident tax in Canada and you must declare it on your US taxes); however, check with the group holding your pension account and find out what they have to say.

http://www.visajourney.com/forums/index.php?showtopic=3464