Canadian US LPRw/US income,spouse rcvd CAN Child benefits

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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nrejmpouk
Posts: 2
Joined: Thu Apr 02, 2015 5:34 pm

Canadian US LPRw/US income,spouse rcvd CAN Child benefits

Post by nrejmpouk »

Glad I finally found this forum.
First off, I'll say I realize I deserve any flak given as I'm coming here in April and should have been here 6 months ago.[color=red](NELSONA's signature says it all, and thanks NELSONA for all the info from what I've managed to read so far) [/color]

Before the flak comes I'll defend myself in asking if maybe having 3 kids under age 5 helps explain why I haven't been poring through tax treaties until now?;) Just to vent I'd like to say that I became a Canadian citizen last October and sure would have found it much more helpful to learn about how the Canadian tax system works rather than the booklet of relatively useless facts about Canada that I was given to study for the test. There was not one question on the citizenship test relating to tax matters yet I was questioned about symbols of Canada such as the beaver, etc...!?

OK:

First 5 months of 2014 we spent staying with family in US due to some health issues. (seems backwards huh) husband acquired US work permit then. Husband also stayed current with the local Canadian Union he had been working out of in 2013 in hopes of further employment, but that never became fruitful. Both of us were in Canada for the month of June. He got job offer in States so we returned to US in early July and he began employment then. His green card was expedited and he became LPR Aug 28th. We were back in Canada in Sept for roughly 2 week period then back to the States for roughly a month. In Canada again for another 2 weeks for my Canadian citizenship ceremony and at that time we moved our stuff down to US. I am a stay at home mother and received Child Benefits through Jan 2015. Yes I realize I should have looked into this earlier but I didn't until January.

From what I have read it seems possible that husband would be considered Non Resident as of Aug 28th (date of LPR) and factual resident before that so income before that date would be taxable in Canada and income after that date possibly exempt from tax using the foreign income tax deduction. However, he retained Canadian vehicle insurance and his Carecard through the end of the year and Canadian drivers license until Sept. We also still have a bank account there since we travel back often. But no RRSP's, investments etc. We don't have primary residential ties like a house in Canada because we lived with his parents there. There was nothing we disposed of of any value because we don't have anything of value.

At this point, I owe CRA some months of Child Benefits back. From what I read, it seems I would also be factual resident for some period of the year but I'm confused what date I would be considered Non Resident. The same date husband became LPR (Aug) or the date we moved stuff down (Oct)? I and my kids also had our Carecards through all last year. (Although they were never used since we don't "subscribe" to any conventional medical system, be it in Canada or US, but anyway)

I realize most of you will say to contact CRA but I am mistrustful of the information they may give as being correct since it seems like a person can talk to 5 different agents and get 3 different answers most of the time.

Should I file departure returns for us both with husbands date of Aug 28th and mine as Oct 21st and report income accordingly? {And pay back child benefits} (No income for me, just him) How much will the carecards/insurance/bank account put us as Residents for tax purposes though if they want more information? (after reading through the treaty I'm unsure that husband would be considered more a resident of Canada or US when it comes down to nitty gritty.) If they see Aug departure date on his return, they will also see I received benefits through the end of the year and will of course want to consider him a Resident for tax purposes for that reason, which I can understand. If my departure date is put as Oct will they base the amount of Child benefits to return as his departure date or mine? At this point, I don't have any more time I can devote to the subject and am thinking to just claim his income as Resident for tax purposes and pay taxes on it just to avoid the hassle of them questioning further and file departure returns for us both as Jan 18th 2015 for next tax year. It feels too complicated to go about the foreign income tax credit etc etc. Also we will be filing jointly in USA. Thank you for any advise any of you can give.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Way too much writing. I hope someone can help you.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

A. What's hubby doing about this?

B. I would NEVER advise calling CRA telephlunkies.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nrejmpouk
Posts: 2
Joined: Thu Apr 02, 2015 5:34 pm

Post by nrejmpouk »

Been too busy to check back on this until now...

A. Hubby works long days bringing home the bacon and I get to sort the bacon out :) But I see your point.

B. Agreed.

C. What would you do?
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Read my signature
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
newballance989
Posts: 3
Joined: Wed Apr 15, 2015 11:42 pm

Post by newballance989 »

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