Another Canadian confused about taxes (I'm sorry)

[Gillian+Mike 6]

Hi everyone, I apologize in advance as I know there are many tax threads already. I've looked through the tax forum but decided to post here in the Canada specific board. I just wanted to ask/be sure of a few things.

I usually do not do my own taxes so please bare with me as I basically know nothing. Lol. Big thanks to VJ for getting me this far...

First, our info...

My husband (US Citizen) is a self employed business owner

I have made no US income in the year 2015 (have not started any employment yet)

I entered the US on my K1 in September 2015

We married September 2015

I received my green card February 2016

We are married filing jointly

I worked in Canada January 2015 - June 2015
Received no EI from Canada while not working
I have a US SSN
My Canadian income is below the 2555 income threshold

My questions are:

Can I still elect to be treated as a NRA for the year 2015 even though I did not receive my green card until 2016?

Please confirm for me: I need an election statement to be considered as an NRA for 2015, form 1040 and form 2555. Is that correct?
Do I need to include any other schedules with my US taxes?

Do I include my Canadian T4 at all or is form 2555 sufficient information?

Do I file my Canadian taxes as married filing separately? Non resident?
I have no yet declared to the CRA that I am now a nonresident. Did I become a nonresident of Canada when I received my green card or when I entered the US on my K1?
Can my husband claim any of our lawyer/visa fees? I have also been taking courses in order to work that he has paid for. Can he claim any of that?
Can we claim any of my US health care payments?


I think that's it! Thank you so much in advance.
Again, I apologize if this post sounds like I know nothing about taxes. It's because I don't. Lol. But as long as I have the correct forms, I can understand a bit better.
Please let me know any info you can!!!

Gillian

Edited February 23, 2016 by Gillian+Mike

[FrancesTaber 12]

Hi Gillian,

I can answer a few of your questions based on my conversations with my accountant in Canada and my husbands accountant in the US.

Just like you, I had no income in the US in 2015 but did receive income in Canada in 2015.

Our US accountant told my husband to file "married filing seperately" and said that I in fact do not need to file as I made no income here and wasn't yet a permanent resident in 2015. So unfortunately I can't answer your questions about your US taxes

I am filing Canadian taxes as married filing seperately, and there is a spot on the form to mark which date you became a non resident of Canada (which is the day you entered the US on your K1 visa back in September). One thing I still need to double check with my Canadian accountant is whether this is on the regular tax form (I'm from Ontario, or if there is a special form for non residents). CRA website might be useful for this information.

You should send a letter in with your Canadian taxes stating the day you moved to the US, any income earned in the US in 2015, any income earned from Canada after you left (ie. maybe a final paycheque that you received after you had moved).. you can just say 0$ for the income questions if thats the case!

I also can't answer the questions about writing off the different expenses you mentioned. But maybe someone on here who has history as a personal accountant could help there!

All the best

Hi everyone, I apologize in advance as I know there are many tax threads already. I've looked through the tax forum but decided to post here in the Canada specific board. I just wanted to ask/be sure of a few things.

I usually do not do my own taxes so please bare with me as I basically know nothing. Lol. Big thanks to VJ for getting me this far...

First, our info...

My husband (US Citizen) is a self employed business owner

I have made no US income in the year 2015 (have not started any employment yet)

I entered the US on my K1 in September 2015

We married September 2015

I received my green card February 2016

We are married filing jointly

I worked in Canada January 2015 - June 2015
Received no EI from Canada while not working
I have a US SSN
My Canadian income is below the 2555 income threshold

My questions are:

Can I still elect to be treated as a NRA for the year 2015 even though I did not receive my green card until 2016?

Please confirm for me: I need an election statement to be considered as an NRA for 2015, form 1040 and form 2555. Is that correct?
Do I need to include any other schedules with my US taxes?

Do I include my Canadian T4 at all or is form 2555 sufficient information?

Do I file my Canadian taxes as married filing separately? Non resident?
I have no yet declared to the CRA that I am now a nonresident. Did I become a nonresident of Canada when I received my green card or when I entered the US on my K1?
Can my husband claim any of our lawyer/visa fees? I have also been taking courses in order to work that he has paid for. Can he claim any of that?
Can we claim any of my US health care payments?


I think that's it! Thank you so much in advance.
Again, I apologize if this post sounds like I know nothing about taxes. It's because I don't. Lol. But as long as I have the correct forms, I can understand a bit better.
Please let me know any info you can!!!

Gillian

[NikLR 13,227]

Hi everyone, I apologize in advance as I know there are many tax threads already. I've looked through the tax forum but decided to post here in the Canada specific board. I just wanted to ask/be sure of a few things.

I usually do not do my own taxes so please bare with me as I basically know nothing. Lol. Big thanks to VJ for getting me this far...

First, our info...

My husband (US Citizen) is a self employed business owner

I have made no US income in the year 2015 (have not started any employment yet)

I entered the US on my K1 in September 2015

We married September 2015

I received my green card February 2016

We are married filing jointly

I worked in Canada January 2015 - June 2015

Received no EI from Canada while not working

I have a US SSN

My Canadian income is below the 2555 income threshold

My questions are:

Can I still elect to be treated as a NRA for the year 2015 even though I did not receive my green card until 2016? - No... You want to file as MFJ you need to use your SSN and claim your Canadian income.

Please confirm for me: I need an election statement to be considered as an NRA for 2015, form 1040 and form 2555. Is that correct? - 1040 is the tax return. form 2555 is for your foreign income exclusion.

Do I need to include any other schedules with my US taxes? -You don't but likely your husband does as he's self employed.

Do I include my Canadian T4 at all or is form 2555 sufficient information? - Generally the form 2555 is fine. I'm sure you guys are filing online not a paper file. File as MFJ you can use your SSN and file online. paper filing is only for MFS and NRA. But you were a resident alien by the end of 2015 so you can't be a non-resident for tax purposes.

Do I file my Canadian taxes as married filing separately? Non resident? - I would file it separately.

I have no yet declared to the CRA that I am now a nonresident. Did I become a nonresident of Canada when I received my green card or when I entered the US on my K1? - When you entered the USA.

Can my husband claim any of our lawyer/visa fees? - No idea

I have also been taking courses in order to work that he has paid for. Can he claim any of that? - No idea

Can we claim any of my US health care payments? - No idea

I think that's it! Thank you so much in advance.

Again, I apologize if this post sounds like I know nothing about taxes. It's because I don't. Lol. But as long as I have the correct forms, I can understand a bit better.

Please let me know any info you can!!!

Gillian

Answers in red.

Check the serbinksi forums too.

[NikLR 13,227]

Just for more info...

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/lvng-eng.html#ddc

Are you an emigrant?

Generally, you are an emigrant for income tax purposes if:

• you leave Canada to live in another country; and
• you sever your residential ties with Canada.

Severing your residential ties with Canada means that you do not keep your main ties with Canada. This could be your case if:

• you dispose of or give up your home in Canada and establish a permanent home in another country;
• your spouse or common-law partner or dependants leave Canada; and
• you dispose of personal property and break social ties in Canada, and acquire or establish them in another country.

If you leave Canada and keep residential ties in Canada, you are usually considered a factual resident, and not an emigrant. However, if you are also considered to be a resident of another country with which Canada has a tax treaty, you may be considered a deemed non-resident. Deemed non-residents are subject to the same rules as emigrants.

For more information on residential ties and residency status, go to Determining your residency status.

When do you become a non-resident?

When you leave Canada to settle in another country, you usually become a non-resident for income tax purposes on the latest of:

• the date you leave Canada;
• the date your spouse or common-law partner and dependants leave Canada; or
• the date you become a resident of the country you settle in.

If you lived in another country before living in Canada and you leave Canada to resettle in that country, you usually become a non-resident on the date you leave Canada. This applies even if your spouse or common-law partner temporarily stays in Canada to dispose of your home.

[newacct 688]

You are by default a nonresident alien for all of 2015 because you do not meet the Substantial Presence Test or the Green Card Test for 2015.

You can have yourself be treated as a resident alien for all of 2015 and file as Married Filing Jointly with your husband by using Nonresident Spouse Treated as Resident. Otherwise your husband will have to file as Married Filing Separately. Married Filing Jointly is generally better than Married Filing Separately.

Edited February 23, 2016 by newacct

[NikLR 13,227]

Unfortunately they don't meet the residence test for Canada either since they left in 2015. Funny little grey area there with the K1.

On the bonus side, because you didn't make any income in the USA, you should be able to get most of your Canadian return back! YAY!

[Gillian+Mike 6]

Hi Gillian,

I can answer a few of your questions based on my conversations with my accountant in Canada and my husbands accountant in the US.

Just like you, I had no income in the US in 2015 but did receive income in Canada in 2015.

Our US accountant told my husband to file "married filing seperately" and said that I in fact do not need to file as I made no income here and wasn't yet a permanent resident in 2015. So unfortunately I can't answer your questions about your US taxes

I am filing Canadian taxes as married filing seperately, and there is a spot on the form to mark which date you became a non resident of Canada (which is the day you entered the US on your K1 visa back in September). One thing I still need to double check with my Canadian accountant is whether this is on the regular tax form (I'm from Ontario, or if there is a special form for non residents). CRA website might be useful for this information.

You should send a letter in with your Canadian taxes stating the day you moved to the US, any income earned in the US in 2015, any income earned from Canada after you left (ie. maybe a final paycheque that you received after you had moved).. you can just say 0$ for the income questions if thats the case!

I also can't answer the questions about writing off the different expenses you mentioned. But maybe someone on here who has history as a personal accountant could help there!

All the best

Thank you so much for your help! We'll definitely have to meet with our accountant and see what is best.

I will be sure to include a letter for my Canadian taxes, thank you! That was very helpful

Answers in red.

Check the serbinksi forums too.

Unfortunately they don't meet the residence test for Canada either since they left in 2015. Funny little grey area there with the K1.

On the bonus side, because you didn't make any income in the USA, you should be able to get most of your Canadian return back! YAY!

Thank you SO MUCH for your help. I'm still a bit confused on what I actually am considered when I file. Lol. I'll have to do some more research!

I'm definitely hoping I will get a nice return

THANK YOU!! Very helpful! So much appreciated!

[NikLR 13,227]

Well you would file your exit taxes in Canada and according to them you are no longer a resident as of the day you left Canada.

I would file MFJ with your spouse and use the form 2555 to exclude your foreign income for the best return. But again, talk to the tax pros.

[Gillian+Mike 6]

Well you would file your exit taxes in Canada and according to them you are no longer a resident as of the day you left Canada.

I would file MFJ with your spouse and use the form 2555 to exclude your foreign income for the best return. But again, talk to the tax pros.

Perfect. Thanks again.

Will do!

On the 2555, do you know if I use Part II on the form (Taxpayers Qualifying Under Bona Fide Residence Test)? Or is that what you guys mean that I don't meet the residence test because I left Canada in 2015?

I feel like I don't really fit into any category! Haha ugh. I'll definitely meet with our tax guy asap.

[NikLR 13,227]

you use the residence test because you were in Canada. So you meet the residency (aka not US residency) requirements to use the form.