Filing 2006 Canadian Income Taxes

[Allie 5]

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

Thanks for the response Flames. I'll have to check whether they can deposit it to the US. If not I'll look into Customhouse handling the transfer.

One other thing while I'm here. My Sharks look very hungry they seem to enjoy the taste of Red Wings lol lol

[CutienPurg 0]

One other thing while I'm here. My Sharks look very hungry they seem to enjoy the taste of Red Wings lol lol

HEY NOW!

[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

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

Hey thanks for the thread Ceriserose. That's what I'm wanting to know exactly, the foreign income part of it all and how it would work. Okay yeah I'll check with the place administering the pension see what they say about it all.

[zyggy 9]

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?

Remember, your EI income is not placed on your T1 unless you are filing a Section 217 return. If you want to send me your return before you file it for me to look it over, feel free to drop me a line... Remember, there is no efiling of a Leaving Canada return.

Edited April 30, 2007 by zyggy

[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?

Remember, your EI income is not placed on your T1 unless you are filing a Section 217 return. If you want to send me your return before you file it for me to look it over, feel free to drop me a line... Remember, there is no efiling of a Leaving Canada return.

Awww phooey! I included it and it's been mailed already. I didn't do a section 217 either.

How messy is this going to be and can I fix it?

[zyggy 9]

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?

Remember, your EI income is not placed on your T1 unless you are filing a Section 217 return. If you want to send me your return before you file it for me to look it over, feel free to drop me a line... Remember, there is no efiling of a Leaving Canada return.

Awww phooey! I included it and it's been mailed already. I didn't do a section 217 either.

How messy is this going to be and can I fix it?

Too late now.. Hopefully the International Tax Services office will catch it and make note of it during your asssessment. You have to wait until the return is assessed now..

[G&A 1]

Actually no... your US spouse can opt to treat you as a resident alien for the entire tax year and you can file a joint return. You would have to report your Canadian income on Line 7 of your US 1040, but you can subsequently exclude your foreign income by filing Form 2555 and subtracting out your foreign income on Line 22 (unless you made over $82,400 last year)... so your joint AGI would be the same as your husband's AGI if he filed separately...

However, you'll be able to take an additional $3,300 personal exemption for you as well as claim the larger $10,300 standard exemption... doing this could result in a larger refund in line with about $1,500 to $2,000...

Filing as married filing separate puts you at a huge disadvantage in terms of deductions and other ways of figuring your tax (higher tax table, putting you in a higher tax bracket, etc...)... don't file it unless absolutely necessary... US Taxes are not like Canadian Taxes where it doesn't matter.. each person does their own... the IRS wants married couples to file joint and put in penalties if they don't... there are isolated and special instances where filing separate makes sense, but your situation isn't one of them...

To make the option, he will have to file a statement with his US Tax Return and send it by mail to his Service Center. If you don't have a SSN, he'll have to file a W-7 to get you an ITIN as well. If you have RRSP's, you'll have to file a 8891 with your return to defer the taxes paid on the amount you esarned in your RRSP... you just check off boxes 6a and 6c and file the form with your return...

Zyggy, Thank you for your help. I have a few questions. I spend most of the day working on our taxes. I learned a lot but also generated a lot more questions.

Before i ask my questions, i have a comment on the above based on what i've learned today. Using Form 2555, i sm able to deduct all the income my spouse (the Canadian) made in 2007 so the AGI for the joint return is not increased by her income. The problem was in the way the actual taxes were computed. It turns out, that although her income does not impact my AGI, it does increase my taxes substantially. Say I made 100K and she made 50K. Let's ignore deduction and exemptions for now. AGI would be 100K (since her income is excluded using 2555). But taxes are calculated by computing the tax on the whole 150K and then computing the tax on just the 50K and subtracting the two. This is very different than computing the tax on net 100K AGI due to the effect of the higher tax brackets on the higher income. I was surprised to see this and I am not sure I understand the reason behind it. Note that the taxes computing for the 50K income are less than the taxes paid on the 50K in Canada so i figured i'd try the foreign tax credit method so i can deduct most if not all of the taxes paid on the 50K in Canada.

Now to my questions. Some background: I am the USC. Wife is the Canadian citizen. We are choosing to file our federal taxes as 'Married Filing Jointly' and we are also using the Foreign Tax Credit method to minimize double taxation. All wife income in 2007 is from Canada. Wife was in Canada for more than 330 days. She is electing to be a US resident for tax purposes (married to a USC).

1) Since my wife does not have a W-2, i just looked at her 12/31/07 paycheck to extract her YTD gross income. Is this right?

2) I used the YTD Canadian Federal Income Tax to claim in From 1116. Since i am extracting the tax amount from the paycheck, it is not the actual tax owed in 2007. Does my wife need to file her Canadian taxed first before i compute the US tax credit?

2a) Will the tax accrued vs. the cash paid method come into play here when i look at how much she paid in taxed vs how she really owed? Form 1116 Line

3) My wife pays CPP, EI and Manulife (ins). Do these figures come into play on the 1040?

4) Her employer pays Prov. Health, Pension, and Manulife. Will these come into play at all?

5) Form 1116: Should i go for the Simplified Foreign Tax Credit election? and are there any implications for using the simplified method for future tax years?

6) Form 1116: Is the type of income "income re-sourced by a treaty" or just "general category income"? she has a regular job in Canada.

7) Form 1116 Part II: It asks for the dates foreign taxes were paid/accrued. Since tax were deducted bi-weekly, what date should i put?

[G&A 1]

Actually no... your US spouse can opt to treat you as a resident alien for the entire tax year and you can file a joint return. You would have to report your Canadian income on Line 7 of your US 1040, but you can subsequently exclude your foreign income by filing Form 2555 and subtracting out your foreign income on Line 22 (unless you made over $82,400 last year)... so your joint AGI would be the same as your husband's AGI if he filed separately...

However, you'll be able to take an additional $3,300 personal exemption for you as well as claim the larger $10,300 standard exemption... doing this could result in a larger refund in line with about $1,500 to $2,000...

Filing as married filing separate puts you at a huge disadvantage in terms of deductions and other ways of figuring your tax (higher tax table, putting you in a higher tax bracket, etc...)... don't file it unless absolutely necessary... US Taxes are not like Canadian Taxes where it doesn't matter.. each person does their own... the IRS wants married couples to file joint and put in penalties if they don't... there are isolated and special instances where filing separate makes sense, but your situation isn't one of them...

To make the option, he will have to file a statement with his US Tax Return and send it by mail to his Service Center. If you don't have a SSN, he'll have to file a W-7 to get you an ITIN as well. If you have RRSP's, you'll have to file a 8891 with your return to defer the taxes paid on the amount you esarned in your RRSP... you just check off boxes 6a and 6c and file the form with your return...

Editing previsous item... Did not allow me to edit actual post.

Zyggy, Thank you for your help. I have a few questions. I spend most of the day working on our taxes. I learned a lot but also generated a lot more questions.

Before i ask my questions, i have a comment on the above based on what i've learned today. Using Form 2555, i sm able to deduct all the income my spouse (the Canadian) made in 2007 so the AGI for the joint return is not increased by her income. The problem was in the way the actual taxes were computed. It turns out, that although her income does not impact my AGI, it does increase my taxes substantially. Say I made 100K and she made 50K. Let's ignore deduction and exemptions for now. AGI would be 100K (since her income is excluded using 2555). But taxes are calculated by computing the tax on the whole 150K and then computing the tax on just the 50K and subtracting the two. This is very different than computing the tax on net 100K AGI due to the effect of the higher tax brackets on the higher income. I was surprised to see this and I am not sure I understand the reason behind it. Note that the taxes computing for the 50K income are less than the taxes paid on the 50K in Canada so i figured i'd try the foreign tax credit method so i can deduct most if not all of the taxes paid on the 50K in Canada.

Now to my questions. Some background: I am the USC. Wife is the Canadian citizen. We are choosing to file our federal taxes as 'Married Filing Jointly' and we are also using the Foreign Tax Credit method to minimize double taxation. All wife income in 2007 is from Canada. Wife was in Canada for more than 330 days. She is electing to be a US resident for tax purposes (married to a USC).

1) Since my wife does not have a W-2, i just looked at her 12/31/07 paycheck to extract her YTD gross income. Is this right?

2) I used the YTD Canadian Federal Income Tax to claim in From 1116. Since i am extracting the tax amount from the paycheck, it is not the actual tax owed in 2007. Does my wife need to file her Canadian taxed first before i compute the US tax credit?

2a) Will the tax accrued vs. the cash paid method come into play here when i look at how much she paid in taxed vs how she really owed? Form 1116 Lines 7h and 7i.

3) My wife pays CPP, EI and Manulife (ins). Do these figures come into play on the 1040?

4) Her employer pays Prov. Health, Pension, and Manulife. Will these come into play at all?

5) Form 1116: Should i go for the Simplified Foreign Tax Credit election? and are there any implications for using the simplified method for future tax years?

6) Form 1116: Is the type of income "income re-sourced by a treaty" or just "general category income"? she has a regular job in Canada.

7) Form 1116 Part II: It asks for the dates foreign taxes were paid/accrued. Since tax were deducted bi-weekly, what date should i put?

8) Form 1116: Can I claim Canadian deductions?

9) Form 1116: beginning part. It asks for Resident of country. Should i put Canada or USA since wife is claiming her self as US resident for tax purposes?

Now i have to figure out California taxes. Initial research indicates i am better of filing as MFS since i do not want to pay state taxes on her income. there is an exception that allows you to file state MFS although the federal is MFJ since her home (domicile) was not in California. The complexity then becomes the whole community property issue. Maybe a good thing if it allows me to cut my income in 1/2.

thanks!

[zyggy 9]

Actually no... your US spouse can opt to treat you as a resident alien for the entire tax year and you can file a joint return. You would have to report your Canadian income on Line 7 of your US 1040, but you can subsequently exclude your foreign income by filing Form 2555 and subtracting out your foreign income on Line 22 (unless you made over $82,400 last year)... so your joint AGI would be the same as your husband's AGI if he filed separately...

However, you'll be able to take an additional $3,300 personal exemption for you as well as claim the larger $10,300 standard exemption... doing this could result in a larger refund in line with about $1,500 to $2,000...

Filing as married filing separate puts you at a huge disadvantage in terms of deductions and other ways of figuring your tax (higher tax table, putting you in a higher tax bracket, etc...)... don't file it unless absolutely necessary... US Taxes are not like Canadian Taxes where it doesn't matter.. each person does their own... the IRS wants married couples to file joint and put in penalties if they don't... there are isolated and special instances where filing separate makes sense, but your situation isn't one of them...

To make the option, he will have to file a statement with his US Tax Return and send it by mail to his Service Center. If you don't have a SSN, he'll have to file a W-7 to get you an ITIN as well. If you have RRSP's, you'll have to file a 8891 with your return to defer the taxes paid on the amount you esarned in your RRSP... you just check off boxes 6a and 6c and file the form with your return...

Editing previsous item... Did not allow me to edit actual post.

Zyggy, Thank you for your help. I have a few questions. I spend most of the day working on our taxes. I learned a lot but also generated a lot more questions.

Before i ask my questions, i have a comment on the above based on what i've learned today. Using Form 2555, i sm able to deduct all the income my spouse (the Canadian) made in 2007 so the AGI for the joint return is not increased by her income. The problem was in the way the actual taxes were computed. It turns out, that although her income does not impact my AGI, it does increase my taxes substantially. Say I made 100K and she made 50K. Let's ignore deduction and exemptions for now. AGI would be 100K (since her income is excluded using 2555). But taxes are calculated by computing the tax on the whole 150K and then computing the tax on just the 50K and subtracting the two. This is very different than computing the tax on net 100K AGI due to the effect of the higher tax brackets on the higher income. I was surprised to see this and I am not sure I understand the reason behind it. Note that the taxes computing for the 50K income are less than the taxes paid on the 50K in Canada so i figured i'd try the foreign tax credit method so i can deduct most if not all of the taxes paid on the 50K in Canada.

Now to my questions. Some background: I am the USC. Wife is the Canadian citizen. We are choosing to file our federal taxes as 'Married Filing Jointly' and we are also using the Foreign Tax Credit method to minimize double taxation. All wife income in 2007 is from Canada. Wife was in Canada for more than 330 days. She is electing to be a US resident for tax purposes (married to a USC).

1) Since my wife does not have a W-2, i just looked at her 12/31/07 paycheck to extract her YTD gross income. Is this right?

2) I used the YTD Canadian Federal Income Tax to claim in From 1116. Since i am extracting the tax amount from the paycheck, it is not the actual tax owed in 2007. Does my wife need to file her Canadian taxed first before i compute the US tax credit?

2a) Will the tax accrued vs. the cash paid method come into play here when i look at how much she paid in taxed vs how she really owed? Form 1116 Lines 7h and 7i.

3) My wife pays CPP, EI and Manulife (ins). Do these figures come into play on the 1040?

4) Her employer pays Prov. Health, Pension, and Manulife. Will these come into play at all?

5) Form 1116: Should i go for the Simplified Foreign Tax Credit election? and are there any implications for using the simplified method for future tax years?

6) Form 1116: Is the type of income "income re-sourced by a treaty" or just "general category income"? she has a regular job in Canada.

7) Form 1116 Part II: It asks for the dates foreign taxes were paid/accrued. Since tax were deducted bi-weekly, what date should i put?

8) Form 1116: Can I claim Canadian deductions?

9) Form 1116: beginning part. It asks for Resident of country. Should i put Canada or USA since wife is claiming her self as US resident for tax purposes?

Now i have to figure out California taxes. Initial research indicates i am better of filing as MFS since i do not want to pay state taxes on her income. there is an exception that allows you to file state MFS although the federal is MFJ since her home (domicile) was not in California. The complexity then becomes the whole community property issue. Maybe a good thing if it allows me to cut my income in 1/2.

thanks!

0) Was your spouse in Canada for all of 2007? Does she have a GC but was still living in Canada... THe answers to these questions are important. If she was in Canada for all of 2007 and was not a GC, then she does not have a requirement to file, you can file as married filing seperate or exercise your option for her to be treated as a US tax resident for all of 2007 and file joint. In your case, you choose the case that gives you the biggest refund or the lowest amount of taxes you need to pay.. Typically the increases in standard deductions that you get for being married filing joint make up for the difference in taxes for the 2555. But as incomes get bigger, I can see how that advantage may evaporate, especially now that the currencies are near par...

1) Yes, you use either the amount on her T4 or from her last paycheck for her year to date earnings. Either is fine and it is on the honor system..

2) You have a choice.. you can use the amount that was taken out of her check and file now... but realize that you would have to treat the difference as income the following year... (basically adding it back in). Or you can wait to file the Canadian return and use that number.

2a) Individuals always use the cash method of accounting...

3) CPP does... the others don't

4) These amounts are not included

5) To do simplified, your foreign taxes cannot be more than $300, I assume that your wife has paid more than that..

6) General

7) Using the word "various" is fine

8) Yes to a certain extent... see the instructions for the form

9) In this case, they are asking for the country in which she was actually resident. THe option to include her in your taxes is at your option. FOr ths form it would be Canada

Agreed.. I would look into filing your CA taxes as married filing single.

[Chica Yeyé 41]

Woohoo! Since zyggy is back, here go my load of questions......

We lived in Canada and the US in the past year (we DCF'ed); and were a one-income household. I have no idea how to begin... I asume we file then both in Canada AND here, right?

Now since only I was working, we file married filing jointly in the US; how about Canada? Does Bren need to file if he didn't have income? Do tell.

I get all confused with this stuff - happy to have you around!!!!!!

[G&A 1]

Zyggy, Wife is Canadian and has lived and worked in Canada all of 2007. No GC. She got her K3 visa last week and is moving to the US shortly.

For the Federal taxes, it looks MFJ is the way to go for me but with FTC (1116) instead of exclusion (2555). Based on your feedback, we will Canadian taxes first and then file US taxes to make sure the actual Canadian tax figure used in the FTC calcs. (anyways, it looks like i will have some FTC carryover for next year and she worked in Canada 1 month in 2008, we will going thru again next year). Since the taxes she owe for 2007 would not be equal to the taxes withheld in cash during the 2007 period, i would have guessed that you would have to use the accrue method as it reflect the actuals taxes accrued thoroughout the year.

regarding 3) above, why can't i take FTC for the EI taxes paid by her in addition to the CPP taxes paid?

Regarding CA taxes, i made some progress. I spoke with the FTB (tax board) and they told me to file 540NR and exclude all her income (it is like doing the 2555 for the fed taxes).

Since she does not have a social, my understanding is that i need to file a W-7 app. for ITIN with the 1040. Not sure what to do for the state 540NR. need to call them again.

thanks a million!

[zyggy 9]

Woohoo! Since zyggy is back, here go my load of questions......

We lived in Canada and the US in the past year (we DCF'ed); and were a one-income household. I have no idea how to begin... I asume we file then both in Canada AND here, right?

Now since only I was working, we file married filing jointly in the US; how about Canada? Does Bren need to file if he didn't have income? Do tell.

I get all confused with this stuff - happy to have you around!!!!!!

All Canadians leaving Canada must file a Leaving Canada return with CRA even if they made nothing. If you were living in Canada as well, you both must submit leaving Canada returns to CRA. Check out the Emigrant and Taxes guide on the CRA website that is mentioned earlier on this thread.

Yes, you both must submit 1040's to the IRS as well as you got your PR status upon entry to the US. If you're a single income household, it would most likely benefit you to file in the manner that is outlined on this thread. That is using Form 2555 to exclude the income that you made in Canada to take a foreign tax credit on your Canadian income by Form 1116.

[zyggy 9]

Zyggy, Wife is Canadian and has lived and worked in Canada all of 2007. No GC. She got her K3 visa last week and is moving to the US shortly.

For the Federal taxes, it looks MFJ is the way to go for me but with FTC (1116) instead of exclusion (2555). Based on your feedback, we will Canadian taxes first and then file US taxes to make sure the actual Canadian tax figure used in the FTC calcs. (anyways, it looks like i will have some FTC carryover for next year and she worked in Canada 1 month in 2008, we will going thru again next year). Since the taxes she owe for 2007 would not be equal to the taxes withheld in cash during the 2007 period, i would have guessed that you would have to use the accrue method as it reflect the actuals taxes accrued thoroughout the year.

regarding 3) above, why can't i take FTC for the EI taxes paid by her in addition to the CPP taxes paid?

Regarding CA taxes, i made some progress. I spoke with the FTB (tax board) and they told me to file 540NR and exclude all her income (it is like doing the 2555 for the fed taxes).

Since she does not have a social, my understanding is that i need to file a W-7 app. for ITIN with the 1040. Not sure what to do for the state 540NR. need to call them again.

thanks a million!

IRS does not consider what you pay into EI as a tax. They consider it a premium for unemployment insurance. A big difference in their eyes.

Yes, you will need to file a W-7 for her. I don't know what California would require, but they sometimes allow you to put 'pending' with a copy of the W-7. But check with them to see how they want to treat it.

Accrual accounting method is used for businesses. For example, if you used accrual method, you would have to calculate the amount of tax she made each day she worked, instead of when it was actually paid. For individuals, we do our account based on the date that we were paid, not on the time that was worked. So for the end of they year, I may have worked the time in 2007 but was paid for that work in 2008. FOr the cash accounting system (which is what individuals use) that income is counted as being earned in 2008, since that is when you were paid for that work. Individuals use cash method of accounting, don't confuse yourself too much.

[Allie 5]

Ziggy can you give me some info.

My scenario: I collect a work retirement pension which is administered by a Canadian Financial Institution and paid monthly into my bank account in Canada.

I entered the U.S. in June on a K1, married in July.

1. Does Lorry show on her return the pension payments made only since I've been here or does she show the retirement pension earnings paid for the whole year?

2. Do I, on my Canadian return claim the whole yr. of payments or only the part of the yr. I resided in Canada?

3. As this pension will continue to be paid in the coming yrs as earned and administered in Canada am I required to fill out a Canada Tax form each yr.

4. Will I need any type of forms other than the regular Taxation ones

I appreciate any advice and info you can give us on this as this tax yr. is very confusing to me

Thanks

Allie

[zyggy 9]

Ziggy can you give me some info.

My scenario: I collect a work retirement pension which is administered by a Canadian Financial Institution and paid monthly into my bank account in Canada.

I entered the U.S. in June on a K1, married in July.

1. Does Lorry show on her return the pension payments made only since I've been here or does she show the retirement pension earnings paid for the whole year?

2. Do I, on my Canadian return claim the whole yr. of payments or only the part of the yr. I resided in Canada?

3. As this pension will continue to be paid in the coming yrs as earned and administered in Canada am I required to fill out a Canada Tax form each yr.

4. Will I need any type of forms other than the regular Taxation ones

I appreciate any advice and info you can give us on this as this tax yr. is very confusing to me

Thanks

Allie

The bank should be taking 25% non-resident tax directly out of the proceeds of the pension. If this is done, then you do not need to file with CRA after this year. If it is beig done, you should notify your bank of your US address. They will then only take out the non-resident tax..

For this year, you will have to file a Leaving Canada return with CRA. You have a choice... You can report the income made up to the date that you left Canada, or you can file a Section 217 return and report all of the worldwide income you made. Do it both ways and choose the method that is most to your advantage.

You are going to have to report this income to the IRS. The proceeds of your pension should be reported as other income. THe payments before you came to the US can be excluded vis form 8555.. for the proceeds after you came to the US, you will need to file for a foreign tax credit using Form 1116, but it may be more advantageuos for you to take a foreign tax credit for all the money that you made from the pension all year and not to take the exclusion now that the CAD is close to par with the USD.

After this year, you will need to continue to report your proceeds of your pension as other income and take a foreign tax credit for the non-resident tax that Canada takes.

Edited January 30, 2008 by zyggy