At Wits End With Taxes

[TwoChickies 105]

Hey everybody, Mr. Chickie, Canadian husband here. Filing taxes today. Woohoo.

First off, I understand that these questions have probably been asked many times, including at http://forums.serbinski.com/viewforum.php?f=2, and answers have been given accordingly, however, I have only been able to find that very answer, that it's already been answered, and not any information that I'm actually looking for. Please, if you wouldn't mind sparing the time, link me to where the information is if you cannot provide it here. I have searched and searched and am no closer to understanding what it is I'm supposed to do with my US and Canadian taxes. Any help at all is super duper greatly appreciated!

The situation:

- I worked from January to May of 2015 in Canada, until I entered the US on May 30th, 2015. My understanding is I need only claim this income on my Canadian tax return, correct?

- After arriving in the US as a permanent resident, I began collecting Canadian Employment Insurance. The flat, non-resident tax of 25% was deducted out of each payment. My understanding is I must claim this on my US tax return, however, I am not certain as to how/where. Any help/clarity on this issue would be hugely appreciated. I don't know if I claim it as unemployment or income and what to do with forms 1116 or 2555.

- I started working in the US at the end of December of 2015, and I'm pretty certain I just claim this as normal using my W2 provided by my employer.

That's really it, and again, I would appreciate it to the moon and back if somebody could shed some light on what the heck I am to do with my EI income.

Thank y'all!

[Cathi 5,747]

did you try asking a tax specialist, or on a tax forum?

[NikLR 13,227]

http://forums.serbinski.com/

[TwoChickies 105]

http://forums.serbinski.com/

I mean, I linked to that very website, explained that I've looked and haven't found the answers. If you don't have an answer beyond that, why bother posting at all? Seems like a waste of both our time and comes off as a lil bit rude.

[NikLR 13,227]

Sorry didnt see that link in your thread and actually posted the wrong link in mine.

Anyhow, as i understood it and that forum explained to me, you claim all income you made in that year on your US taxes. Then use form 2555 to exclude it all. It's all Canadian income regardless of where you were living. So if you feel you exclude the Canadian income because you didnt live here, why would you include Canadian income while you did? Make sense or no? Fortunately because you worked mostly in Canada you do get most of your Canadian return back. (It has to be like 90% Canadian income I think.) Compared to someone like me who only did 75% Canadian income.

Or you can actually use the tax services, the link i meant to give, and pay them to help you. I guess it depends on if it's worth it to you to do that.

However I found this:

https://ttlc.intuit.com/questions/2888008-is-a-foreign-canadian-unemployment-insurance-benefit-addressed-by-the-foreign-income-exclusion-or-a-foreign-tax-credit-or-some-other-means-to-avoid-double-taxation

Probably helps as it says you can't foreign exempt the EI tax.

http://www.taxplanningguide.ca/tax-planning-guide/section-2-individuals/canadian-residents-working-us/

Also may help.

Have a good week.

Btw i find it interesting that I was rude but yet the person above me asked if you'd asked on a tax forum... go figure.

[Exocet 88]

So these are your close out taxes for Canada? You should file your Canadian taxes, and choose the option that says you ceased to be a resident of Canada. You can claim your EI on the Canadian taxes.

Then, when you do the American taxes, you put all of your Canadian income on form 2555.. but there's somewhere in there where you state (or check a box.. I used Turbo Tax to do my taxes last year) that the income is being processed under the tax treaty.. so basically you are letting the US govt know about the money and that it's already being taxed elsewhere... so that they don't double tax you on it.

Hey everybody, Mr. Chickie, Canadian husband here. Filing taxes today. Woohoo.

First off, I understand that these questions have probably been asked many times, including at http://forums.serbinski.com/viewforum.php?f=2, and answers have been given accordingly, however, I have only been able to find that very answer, that it's already been answered, and not any information that I'm actually looking for. Please, if you wouldn't mind sparing the time, link me to where the information is if you cannot provide it here. I have searched and searched and am no closer to understanding what it is I'm supposed to do with my US and Canadian taxes. Any help at all is super duper greatly appreciated!

The situation:

- I worked from January to May of 2015 in Canada, until I entered the US on May 30th, 2015. My understanding is I need only claim this income on my Canadian tax return, correct?

- After arriving in the US as a permanent resident, I began collecting Canadian Employment Insurance. The flat, non-resident tax of 25% was deducted out of each payment. My understanding is I must claim this on my US tax return, however, I am not certain as to how/where. Any help/clarity on this issue would be hugely appreciated. I don't know if I claim it as unemployment or income and what to do with forms 1116 or 2555.

- I started working in the US at the end of December of 2015, and I'm pretty certain I just claim this as normal using my W2 provided by my employer.

That's really it, and again, I would appreciate it to the moon and back if somebody could shed some light on what the heck I am to do with my EI income.

Thank y'all!

[TwoChickies 105]

Thank you guys, I sincerely appreciate your input and I feel like I have a better grasp on everything now.

Btw i find it interesting that I was rude but yet the person above me asked if you'd asked on a tax forum... go figure.

Thank you for the information, and my apologies for the curt reply before. I was beyond frustrated with all of this and had just spent hours finding thread after thread that just said, "go to serbinski" on here, only to find a lot of threads there saying "it's already been answered" but not finding any actual answers! I guess seeing the actual link for serbinski hit a bit of a nerve and I overreacted. I do apologize and greatly appreciate your and Exocet's input.

Now to see if I can actually figure this stuff out.

[dee&vee 79]

The situation:

- I worked from January to May of 2015 in Canada, until I entered the US on May 30th, 2015. My understanding is I need only claim this income on my Canadian tax return, correct?

- After arriving in the US as a permanent resident, I began collecting Canadian Employment Insurance. The flat, non-resident tax of 25% was deducted out of each payment. My understanding is I must claim this on my US tax return, however, I am not certain as to how/where. Any help/clarity on this issue would be hugely appreciated. I don't know if I claim it as unemployment or income and what to do with forms 1116 or 2555.

- I started working in the US at the end of December of 2015, and I'm pretty certain I just claim this as normal using my W2 provided by my employer.

That's really it, and again, I would appreciate it to the moon and back if somebody could shed some light on what the heck I am to do with my EI income.

Thank y'all!

Hi, we have pretty similar immigration timeline and exact same income situation. I also asked about taxes on Serbinski forum and searched everywhere. NLR's post up there sums it up. Here's what I understand -

• File joint tax return (MFJ) as a full year USA resident instead of filing for split year as a dual status resident.
• include your Canadian, US and EI income combined in USD on your US tax return.
• Claim Canadian and EI income for exemption using form 2555.
• Form 1116 is to claim for tax credit but on Serbinski forum I was recommended to file 2555 instead since exemption is better than tax credit (1116)

Let me know if I missed or forgot to include anything. Did you file it already? Post an update when you do...

[Exocet 88]

Hi, we have pretty similar immigration timeline and exact same income situation. I also asked about taxes on Serbinski forum and searched everywhere. NLR's post up there sums it up. Here's what I understand -

• File joint tax return (MFJ) as a full year USA resident instead of filing for split year as a dual status resident.
• include your Canadian, US and EI income combined in USD on your US tax return.
• Claim Canadian and EI income for exemption using form 2555.
• Form 1116 is to claim for tax credit but on Serbinski forum I was recommended to file 2555 instead since exemption is better than tax credit (1116)

Let me know if I missed or forgot to include anything. Did you file it already? Post an update when you do...

In this example how do you tell the CRA that you are no longer a resident? From everything I read, it is important to file your last "close out" taxes when you leave Canada.

[NikLR 13,227]

First page of tax return has a spot to say when you stopped bring a resident of Canada. There is also another schedule to determine what % of your income was Canadian so they can determine your refund%

[dee&vee 79]

Hi, we have pretty similar immigration timeline and exact same income situation. I also asked about taxes on Serbinski forum and searched everywhere. NLR's post up there sums it up. Here's what I understand -

• File joint tax return (MFJ) as a full year USA resident instead of filing for split year as a dual status resident.
• include your Canadian, US and EI income combined in USD on your US tax return.
• Claim Canadian and EI income for exemption using form 2555.
• Form 1116 is to claim for tax credit but on Serbinski forum I was recommended to file 2555 instead since exemption is better than tax credit (1116)

Let me know if I missed or forgot to include anything. Did you file it already? Post an update when you do...

Just making correction on my previous post

I found out from two sources that EI income earned while being in US cannot be excluded on form 2555. After leaving Canada, 25% of your EI gets deducted as taxes. EI income should be reported on form 1116 and take tax credit for it.

Sources : - http://forums.serbinski.com/viewtopic.php?p=16612&sid=56c23ac93a013fd26fccf28a29f9004f

http://www.visajourney.com/forums/topic/239576-2010-tax-thread-for-canada-and-the-us/page-4#entry3693579

Has anyone of you above posters dealt with reporting EI income on US taxes? How did you report it? I am using Turbo tax and I am not sure where to add EI income in it?

[TwoChickies 105]

Just making correction on my previous post

I found out from two sources that EI income earned while being in US cannot be excluded on form 2555. After leaving Canada, 25% of your EI gets deducted as taxes. EI income should be reported on form 1116 and take tax credit for it.

Sources : - http://forums.serbinski.com/viewtopic.php?p=16612&sid=56c23ac93a013fd26fccf28a29f9004f

http://www.visajourney.com/forums/topic/239576-2010-tax-thread-for-canada-and-the-us/page-4#entry3693579

Has anyone of you above posters dealt with reporting EI income on US taxes? How did you report it? I am using Turbo tax and I am not sure where to add EI income in it?

Hey guys, I went ahead and filed my taxes, but from what I'm reading here, I may have done it wrong!

I claimed my EI as income and excluded it with form 2555. I was using TurboTax and it decided that was better in my situation, although in general it suggested a 1116 tax credit was usually better for your return. I guess I felt I'd rather get a smaller return than I was entitled instead of ending up owing by doing something wrong. In TurboTax, there's a section where you follow the guide through what kinds of income you made, and I believe I put EI in foreign income along with my other Canadian income for the year.

I have to check my other computer to be sure of where I put it in. I'll get back to you on that.

As for the question of where to indicate that it's your "exit" return, as NLR said, it's the first page of your T1, but it has to be a T1 for the province you resided in before leaving Canada, not a non-resident T1 (I believe). That confused me for a while. I think it was a different post of NLR's that cleared it up, actually!

If/when I receive a notice from the IRS saying I messed up, I'll definitely report back here and then we'll know for sure! Haha. I hope that doesn't happen.

[dee&vee 79]

Hey guys, I went ahead and filed my taxes, but from what I'm reading here, I may have done it wrong!

I claimed my EI as income and excluded it with form 2555. I was using TurboTax and it decided that was better in my situation, although in general it suggested a 1116 tax credit was usually better for your return. I guess I felt I'd rather get a smaller return than I was entitled instead of ending up owing by doing something wrong. In TurboTax, there's a section where you follow the guide through what kinds of income you made, and I believe I put EI in foreign income along with my other Canadian income for the year.

I have to check my other computer to be sure of where I put it in. I'll get back to you on that.

As for the question of where to indicate that it's your "exit" return, as NLR said, it's the first page of your T1, but it has to be a T1 for the province you resided in before leaving Canada, not a non-resident T1 (I believe). That confused me for a while. I think it was a different post of NLR's that cleared it up, actually!

If/when I receive a notice from the IRS saying I messed up, I'll definitely report back here and then we'll know for sure! Haha. I hope that doesn't happen.

Hi couple questions -

So you filed married filing joint as full year, but did you file your state return as partial year? Turbotax suggested me to file my state return as partial since I lived in foreing country before I moved to USA.

Can you check form 2555, line 9 - where it asks you to list your homes during tax year and dates established. Did you list your taxx home as USA or Canada?

Thanks.

[Exocet 88]

Yeah I know... But they didn't include filing Canadian taxes in their summary,.. Which is why I asked. Sorry if I wasn't clear

First page of tax return has a spot to say when you stopped bring a resident of Canada. There is also another schedule to determine what % of your income was Canadian so they can determine your refund%

[NikLR 13,227]

Yeah I know... But they didn't include filing Canadian taxes in their summary,.. Which is why I asked. Sorry if I wasn't clear

You have to file a final tax return the year you leave Canada. there are other forms you can use, they're on the CRA or Service Canada websites though.