Basic tax questions

[ARNGWFE 0]

Sorry if this has already been asked, but I can't seem to find a simple answer.

For 2006 I have a T4 for my Canadian income, an NR4 form from cashing in my pension and a W2 from my US income.

Do I file Canadian taxes using the T4 and NR4 and then also file separate US taxes using the W2 form? Does my Canadian income appear anywhere on my US taxes or vice versa? (I thought I had to claim "world income" on my US taxes). If I have to file separate Canada taxes, do I file as single since I wasn't married until after I left Canada?

We'll be getting professional help, but I'd just like to get the basics straight in my head before our appointment.

Thanks much,

Jen

[Our Mao 0]

I'm responding assuming that you got married in 2006 and you had Canadian income but you moved to the US some time in 2006. You will file a final Canadian tax return and report your T4 and your NR4 for 2006. You will send that to the CCRA in Canada.

For the US return, you will report your income (W2) and in addition to that you will enter your Canadian income in the FOREIGN INCOME SECTION. Make sure that you put in the taxes that you have paid when you were in Canada (taxes withheld on your T4 and NR4 slips) The US and Canada have tax treaties in place to avoid double taxation. Also, there is an annual foreign income amount that is exempt ( can't remember from the top of my head but it's around $48,000) If you make less than that, you should be ok. Even if you make more than that, you dont have to worry because the tax treaties should have you covered. Hope that helps!

PS: I'm a Canadian CGA and a US CPA so I know all about these kinds of stuff!

[Flames9_RN 358]

http://www.irs.gov/pub/irs-pdf/f2555.pdf

form 2555 or 2555 ez to exclude foreign income.

[Our Mao 0]

http://www.irs.gov/pub/irs-pdf/f2555.pdf

form 2555 or 2555 ez to exclude foreign income.

Good job Flames. That's the form!

[ARNGWFE 0]

Thanks so much! All your assumptions were correct. I've got a good handle on the process now.

[jen&darcy 0]

Thank you! Thank you! I am an accountant but I am a corporate accountant. I don't deal with this stuff. This topic answered all of my questions. Now I should be able to figure them out on my own and not have to go to H&R Block.

Jen