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"Not quite sure what you mean. You aren't calculating tax owing on the pro forma. You are calculating taxrate. You don't go past line 63 on 1040. Remove any entries below line 63, and put a cross thru the entire bottom of that page if you wish. "

I used TurboTax for the pro forma, so all the info ...

Sorry nelsona, I did not see your 2nd response. I get it now. When I was referring to CPP & EI I meant as taxes paid in Canada (not income) but now I understand. Thanks!


I'm concerned about one thing. My pro forma shows $3800 owing but the two NR's show $1000 owing and a $300 return. I know I am ...

Oh ok...thanks!

Can I just deduct the taxes paid right off the income before entering it in the income section (i.e. $20,000 - $8,000 = $12,000)? Also, can I include CPP & EI? Also, can I include taxes owed in Canada on our rental properties?

Thanks again nelsona. You're awesome!

nelsona,

I am using the pro forma 1040 MFJ method (I hadn't had a chance to finish this up until now) to calculate the eff. tax rate and use that on the NR. Previously I had come up with a eff. tax rate of 15.26% but I realized that I hadn't entered any information for foreign taxes paid in Canada ...

Does anyone know of a way I can test out each method in any of the Canadian online tax softwares?

This would be great. Thanks for the update nelsona.

This may be trivial and I'm missing something obvious here but maybe someone could help me out...

Keeping this pretty straight forward:
Assume $75k income, $0 current RRSP contribution.
For simplicity, my current refund is $0.

If I add $1000 to an RRSP, in Ontario, should I now see a new ...

nelsona is right, I do use up all my US tax on my Canadian return.

I'm quite new to this so it's entirely possible that I've made a mistake. I'm using ufile. I'm not sure how many people are familiar with this particular software but in the "foreign income - employment" section at the very bottom ...

Thanks nelsona. I just wanted to make sure it's "ok" to do that.

Canadian working in US (commuter)...
Generally I have always used my foreign tax paid against Canadian tax otherwise payable but I have been told the following:

There are two ways of using the foreign tax paid: the more advantageous one is as a credit against Canadian tax otherwise payable, the ...

Sorry nelsona.
What I meant was, using the pro-forma 1040 (MFJ) I arrived at an effective tax rate of 15.26%. When I calculated our individual tax rates using the 1040NR method, I got 17.3% for me and 15.1% for my husband.
It seems it's more beneficial to use the pro forma method (w/ treaty ...

nelsona, if my husband's eff. tax rate is actually lower using the NR can I file his NR using that tax rate (15.1%) (i.e. a regular NR) instead of the eff. tax rate determined from the pro forma (15.26%) but use the pro forma eff. tax rate for my NR? In other words, can I claim the treaty and my ...

Doh!
Sorry nelsona. ;)

What tax advantages can a Canadian commuter (working in US) use if company has zero 401k match and US taxes can only be reduced enough to contribute very little to RRSPs in Canada?

it may interest you to know that just above the cutoff at the bottom of the 35% bracket, there’s a strange little micro-bracket caused by a quirk of the OHIP premium. From $72k to $72.6k, the marginal rate including the OHIP premium is over 60%. I'm not sure if this is your neigbourhood but it may ...