Canadian on L1-A Taxes

croberts · Post by **croberts** » Wed Apr 11, 2012 9:03 am

Tax question:

I entered the USA on June 21, 2011 on a L1-A visa. I believe that puts me at 193 days in the USA last calendar year.

Does this mean me USA tax return is simple? Can I go to H&R block and file in the same manner as an American Citizen?

Anything special I need to do?

croberts · Post by **croberts** » Wed Apr 11, 2012 9:17 am

I should mention, I still live in Georgia and have no ties to Canada residency or income wise.

I'm assuming I just fill out a 1040 as an American Resident and that's all I need to do.

nelsona · Post by **nelsona** » Wed Apr 11, 2012 11:44 am

To file regular 1040 you will need to report workld in come for 2011. You will also have to file departure return for Canada.

croberts · Post by **croberts** » Wed Apr 11, 2012 12:22 pm

[quote="nelsona"]To file regular 1040 [b]you will need to report workld in come for 2011[/b]. You will also have to file departure return for Canada.[/quote]

Is this a bad thing from a taxation perspective? What is the impact to the USA return?

nelsona · Post by **nelsona** » Wed Apr 11, 2012 12:25 pm

No, this is good. You can exclude much of your Cdn income AND get the preferential rate tha tyou get with 1040.

Departing form canada means you won't have to pay Cdn taxes on your US income.

croberts · Post by **croberts** » Wed Apr 11, 2012 12:27 pm

Thanks for the response and guidance. I appreciate it.

croberts · Post by **croberts** » Thu Apr 12, 2012 1:25 pm

H&R bloack has said I owe $1000 as a result of claiming my global income.

I know you don't know the specifics of wages, etc. Does this scenario sound likely? They said I only partially qualify for the foriegn tax credit.

I feel like I should take it elsewhere.

Any advice?

nelsona · Post by **nelsona** » Thu Apr 12, 2012 3:24 pm

Don't go to H&RBlockeads?

croberts · Post by **croberts** » Thu Apr 12, 2012 3:27 pm

Does my situation sound typical or would you expect that the individual would usually get a refund.

This is a basic situation with no investments. 5 months or salary and taxes in Canada and the rest in the USA.

They said I only qualify for a portion of my foreign tax credit, but can explain why.

nelsona · Post by **nelsona** » Thu Apr 12, 2012 3:30 pm

To accuartely determin if filing dual-status or full-year, one would have to do both and pick.

A refund/owuing means nothing. It simply means you over/under paid your taxes during the year. Its the comaparison between dual and full tht you need to make.

And youy should be using the froreign income exclusion on your wagesm not the foreign tax credit.

But, 100% guaranteed, blokhead is not doing it correct. I have not heard of them doing a first year tax return correctly in 12 years.

croberts · Post by **croberts** » Thu Apr 12, 2012 3:41 pm

Thanks a million. The last line is what I really needed to know. I don't have the confidence they are doing this correctly.

I will go to a specialist.

croberts · Post by **croberts** » Thu Apr 12, 2012 3:45 pm

One last thing and then I'll be quiet.

Regarding the April 17th deadline. Is is simply a day to start interest IF I owe? Or do I face other consequences besides interest for not filing on time?

I'm just trying to figure out how much time I have to find someone in Atlanta who knows what they are doing.

nelsona · Post by **nelsona** » Thu Apr 12, 2012 4:20 pm

Only if you owe. October is the real deadline for "timely" filing of other items. June 30th for the FBAR

croberts · Post by **croberts** » Thu Apr 12, 2012 4:38 pm

Thanks