Serbinski Accounting Firms

... and if the checks qualify as "pensions or annuities" then they will be taxed in Canada using the same exemption rules as would apply in the U.S. (according to the Treaty).

Why don't you post your contact parameters here, Rickerbucks, for our readers information.

It may be to your advantage to use a money broker, like:

Jameson International Foreign Exchange
1-800-363-7363 - Ask for Steve Hayhoe

He normally gives you a better rate than the banks, and also pays the wire fees.

shsamardar wrote: for 2005, due for paying section 216 tax in canada is April 30th 2006. now that I am actually paying the tax in 2006, can I get credit fot it in 2005 in USA or I need to report it next year?

You can claim the tax from a Sec 216 return for 2005, on your 2005 U.S. return.

Assuming you entered the U.S. in 2004 and renewed your TN in 2005, you file in the U.S. as a resident.

For Canada, you must separately determine when and if you actually departed from Canada for tax purposes. You could look at the following link to determine how you fit in...

http://www.serbinski ...

shsamardar wrote:whole year 2005 we were in california. for 2004 taxing (preveious year taxation) we filed residency for USA because we passed 180 days test.

Because you were in the U.S. for the entire year, you must file a regular 1040 and California resident return and declare world income.

You can list all expenses on your schedule E which are related to earning the rental income. This includes realty taxes, assn. dues, interest, insurance, maintenance or strata fees, and even a trip to view the property.

You must also complete a sec 216 return in Canada, claiming the same income and ...

Note: Your departure date is the date that your wife finally left Canada, even if it is just two weeks after you did.

In the event that you worked in the U.S. during the period that your wife was still a Canadian resident, then you will have to include that income on your Canadian return, subject ...

As a non resident of Canada, the 25% withholding tax is your only obligation to Canada respecting the withdrawal of your RRSP funds. You may be entitled to file a Sec 217 return to recover all or part of this tax, however, if your world income is low.

CRA uses world income to calculate the tax ...

You can incorporate a company in the U.S.

However, whether it is beneficial or not depends on your residential status in Canada and other factors.

Your wife became a U.S. resident when she obtained her green card.

However, you may find it beneficial to elect to have her treated as a U.S. resident for the entire year, and include her world income for the year, subject to exemptions and credits. This would allow you to file a joint return with ...

It may not be so simple...

In the year you move into the U.S. you have a choice of filing either as:

a) a dual status taxpayer (including only income from the date of entry to the U.S.) - but you cannot claim a standard deduction or file jointly.

b) elect to be treated as a full year U.S ...

You can also use a "certifying acceptance agent", to simplify this process. Certifying acceptance agents can certify and sign your W7 after reviewing original identification.

Our firm are certifying acceptance agents.

A full list of certifying acceptance agents in Canada can be found at:

http ...

Unfortunately, there is no deduction for social security taxes on the 1040 or anywhere else, unlike the tax credit available for CPP and EI on Canadian returns.

Although you may be considered a non resident of Canada, certain types of income are deemed to be earned in Canada to students, and are therefore taxable in Canada. This includes any funding you receive from Canadian sources for your studies.

Money you earn in the U.S. while studying there is not ...