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CAMama3

First year tax questions- Canada/US, remote work

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Filed: AOS (pnd) Country: Canada
Timeline

We have pretty much spent the last week reading loads of tax posts on here and Serbinski and probably have less of a grasp on taxes than we thought.

Our situation:

Me: USC, stay at home mom, no income (was living in Canada with now-husband and kids, we all moved in Feb 2015)

Husband: K1 entered in Feb 2015, EAD July 2015, GC Dec 2015

We will be filing MFJ with letter saying husband wants to be treated as a resident alien.

Husband worked in Canada up until we left. Then later also worked for a few months remotely for the Canadian company (paid into Canadian bank account, paid in CAD, paid Canadian taxes).

We thought we should use the foreign earned income exclusion, but since we moved in Feb 2105, I think Turbo Tax is only giving us 1/6 of the $100,000 exclusion, resulting in $$$ of taxes owed.

Is the "tax home" of the post-move Canadian work Canada? Does that make a difference? Confused since on similiar posts on Serbinski, Nelson has said that no Canadian taxes should be paid and my husband should have been a contractor and set aside money for US self employment taxes. If so, I'm guessing we are just going to have to take the hit and pay double on those few months...

I've seen that people who work remotely or work in Canada and live in the US, use the foreign income tax credit instead of the foreign earned income exclusion? Is that what we should be doing instead for all the Canadian work (pre and post move)?

We have only started plugging numbers into Turbo Tax, so if I am royally confusing things, please let me know.

K1 Vancouver

AOS

4/4/15- AOS/EAD/AP sent

4/6/15- Package received

4/9/15- NOA1- text/email

4/13/15- NOA1 hard copy EAD/AP (NOA1 dated 4/7)

4/14/15- NOA1 hard copy AOS (NOA1 dated 4/7)

4/17/15- Biometrics Letter received

4/29/15- Biometrics completed

6/23/15 (Day 77)- Service request

7/2/15 (Day 86)- Service request complete, email of approval of EAD (approved on June 30)

12/29/15- Interview

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Foreign Tax Credit is the way for you to go. BTW, you can't use both the FTC and FEIE on the same return.

US Citizenship based on section 319(b)

Entered US Date: 7/27/2015

Date Married: 8/15/2015

GC-Date: 12/1/2015

Sent: 4/12/2016

Check Cashed: 4/20/2016

E-Notification: 4/20/2016

NOA: 4/18/2016

Fprints: 4/12/2016

In Line:

Int Ltr: 7/19/2016

Interview: 8/8/2016

Oath: 8/10/2016

Field Office: Honolulu, HI

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Filed: AOS (pnd) Country: Canada
Timeline

Great thanks! Finally got Turbo Tax to just do FTC instead and we are back down to what we thought we were going to owe. And now, I'm quitting looking at taxes for the night to end on a good note!

K1 Vancouver

AOS

4/4/15- AOS/EAD/AP sent

4/6/15- Package received

4/9/15- NOA1- text/email

4/13/15- NOA1 hard copy EAD/AP (NOA1 dated 4/7)

4/14/15- NOA1 hard copy AOS (NOA1 dated 4/7)

4/17/15- Biometrics Letter received

4/29/15- Biometrics completed

6/23/15 (Day 77)- Service request

7/2/15 (Day 86)- Service request complete, email of approval of EAD (approved on June 30)

12/29/15- Interview

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