U.S. back taxes and streamlined compliance

ap.clifs · Post by **ap.clifs** » Tue Sep 06, 2016 1:58 pm

Hello, I'm working on the past 3 years of taxes in the U.S. to hopefully enter the streamlined compliance program. I'm a U.S. Citizen, married to a Canadian citizen, and living in Canada since 2006, currently a permanent resident with a citizenship application in the process, in case any of this matters. I don't own any property, or have any registered savings. On all my T1's, the only income showing is Employment, UCCB, and EI.

From what I can gather at this point, I think I need to complete a 1040 along with a 2555-EZ, as my "total income" in Canada has been < $30,000 CAD each year, so well below the threshold. This is with the understanding that UCCB and EI income can be excluded along with my employment income. Is that true? I know my situation is quite simple, but this almost seems too straightforward and I fear I'm not accounting for the UCCB and EI benefits correctly. I don't want to complicate things, but I do want to ensure my application is done correctly. Any help is greatly appreciated.

Thanks,

nelsona · Post by **nelsona** » Tue Sep 06, 2016 3:29 pm

Only your employment income is allowed to be excluded on 2555.

backfiling for Cdns is really more about reporting certain foreign assets. if you have none of these, and your bank accounts and investment accounts are less than 410K total, you have little to worry about. Your catchups should be sufficient.

ap.clifs · Post by **ap.clifs** » Tue Sep 06, 2016 3:39 pm

Thank you so much for the reply. So I would be looking at a 1040, 2555EZ for employment income, and 1116 for EI and UCCB then? Or is it generally preferred to use a 1116 for employment income also if I will need to submit it anyway?

On the 1040, I am planning to put the USD equivalent for EI on line 19, and UCCB and employment income on line 21... or should EI income go on line 21 also?

My apologies for all the questions.. it seems like every answer begets 2 new questions.

nelsona · Post by **nelsona** » Tue Sep 06, 2016 3:56 pm

It isn't going to make much difference in your case, since it is impossible that you will owe US tax. But use 2555 on wages, if you prefer.

UCCB is not employment income, list it as other income. Your wages go on the wage line.

Where are you getting your misinformation?

Once you exclude your wages using 2555, do you have enough income to owe taxes? If you do, then use 1116, otherwise don't bother.

If you do need 1116, then only include the prorated Cdn tax for UCCB and EI.

nelsona · Post by **nelsona** » Tue Sep 06, 2016 3:58 pm

.. and use online tax software for 2015. Then you will easily be able to do previous years by following that one.

ap.clifs · Post by **ap.clifs** » Tue Sep 06, 2016 4:12 pm

Going to try and find some free software to try this out for 2015; great advice.

Also, I'm not sure how I would include UCCB in Other income (line 21) if that's where I'm supposed to put the offset wages amount from F2555?

ie. Line 7 is $25,000, line 21 is ($25,000)... how do I list the income from UCCB?

The source of my misinformation?? Google, where else. Glad I stumbled across this site!!!

nelsona · Post by **nelsona** » Tue Sep 06, 2016 8:56 pm

more than one item can be listed on line 21. AS I said, when you run software (pay the $9.00) you will see how it is done.