First time filling tax return - What about foreign income earned before entering the US?

[MontyFlo 6]

Hi,

My question is basically in the title: I entered the US in end March 2015 with my K1 visa; got married and received my EAD and started to work in July 2015 in the US. I worked in Canada in January and February 2015 before I moved to the US. So what do I do with the money I earned in Canada? Do I have to report it on the US tax return? My wife and I were thinking to fill jointly but on Turbo Tax, there is no specific section that allows me to precise when I entered the US so it acts like if I will have to pay taxes on my Canadian earnings knowing that I already paid tax there so I don't really want to pay double tax...

What should we do? Do I need to declare my Canadian earnings from January-February 2015 knowing that it was before I entered the US? And if yes, how??

This thing is driving me crazy...

Thanks guys

[Dohan 133]

You did not have a green card or a social security number January-February so that income does not count because until that moment you were not a "tax resident". This was the explanation given to us by a certified CPA because we have a similar issue.

[Alaska2012 462]

Yes you must declare your income from Canada. How you do it with turbo tax I have no idea. Maybe pop by an H&R block and see if they can help? It might be too tricky to do with a program like turbo tax

[MontyFlo 6]

Thanks for both your answers. That doesn't look like it is going to be easy to figure it out tho... :/
I am also trying to contact a tax professional but it isn't easy to find one that knows about this kind of situation...

[NikLR 13,227]

Yes you are supposed to declare that income.

http://forums.serbinski.com/

Best Canada/US tax forum we've found.

[dmck 80]

next year, TurboTax will be no issue. TurboTax does contain all the forms to correctly do this split declaration tax. What version are you all using? It may be that you should use a more expensive version to get the "question coaching" that TurboTax is known for. If you know what forms to access, they are available in all versions of TT.

[Nich-Nick 3,354]

Hi,

My question is basically in the title: I entered the US in end March 2015 with my K1 visa; got married and received my EAD and started to work in July 2015 in the US. I worked in Canada in January and February 2015 before I moved to the US. So what do I do with the money I earned in Canada? Do I have to report it on the US tax return? My wife and I were thinking to fill jointly but on Turbo Tax, there is no specific section that allows me to precise when I entered the US so it acts like if I will have to pay taxes on my Canadian earnings knowing that I already paid tax there so I don't really want to pay double tax...

What should we do? Do I need to declare my Canadian earnings from January-February 2015 knowing that it was before I entered the US? And if yes, how??

This thing is driving me crazy...

Thanks guys

If you want to file a joint return with the wife, then both of you declare worldwide income earned anywhere between Jan 1 and Dec 31, 2015.

I suggest you buy the cheapest version of TurboTax called Basic for around $29,99. You can download it or buy a CD and install.

You will find a section called Income that will take you through everything from jobs, contract work, self employment, interest, dividends, Way at the end is "Less Common Income". That is where TurboTax will ask if you had any foreign income.

It will guide you through Form 2555 to exclude your foreign income. You would qualify for it as a bonafide resident of Canada. It will ask when you left Canada. It will ask your foreign employer name, address and how much you earned (converted to US dollars.). You will not be taxed on the Candian part.

Finish your return and print it out because you won't efile this year. You have to include a statement electing to be treated as a resident alien for tax purposes in order to file with your wife. That's way easier than counting days present and such. TurboTax will tell you where to mail it. Read what they say.

About the statement you write and sign.This is from the IRS:

Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. It should contain the following information:

A declaration that one spouse was a nonresident alien and the other spouse a U.S. citizen or resident alien on the last day of your tax year, and that you choose to be treated as U.S. residents for the entire tax year

The name, address, and identification number of each spouse. (If one spouse died, include the name and address of the person making the choice for the deceased spouse.)

Edited February 15, 2016 by Nich-Nick

[Dohan 133]

Invest the money and go to a real accountant. I did my tax return through Turbo Tax and it was absolutely useless. My accountant explained everything to me, walked me through every step and I even got a refund because it turned out my genius former employer did my W4 wrong. Nothing better than an actual professional working with you and for you

[Nich-Nick 3,354]

....and I even got a refund because it turned out my genius former employer did my W4 wrong.

??? Employers don't do W-4s. The employee fills that out as an estimate of how much to hold out. If too much is held out, you get it back. Nearly 8 out of 10 taxpayers get a refund is CNN's estimate. Time magazine estimates 75%.

[MontyFlo 6]

Thanks for your help all!!

It is very helpful! I found the section where I need to report my foreign income on Turbo Tax

I am still going to reach out to a tax professional and see what he says and I will go from here.

Thanks y'all!!