Serbinski Accounting Firms

Not sure what 2 options you've indicated.

The only 'two' options I know of are:

using 1116 to report to claim the 25% tax as a CREDIT,
You always report ALL of the 25%, and let the form determine what the most you can use is.

or

Using Schedule A and using the 25% tax (again, all of it) as a ...

I am unfamilair with 'tax-free housing'.

I'm quite sure either IRS or CRA would view this as a taxable benefit, so it wouldn't matter what your tax residency was: it would be taxable.

Perhaps other can shed more light on such an arrangement.

<i>nelsona non grata... and non pro</i>

Joe: 2 things you've said troubled me:

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">I already filed my taxes in canada as I normaly do,<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

For 2004 ...

This is often the recommendation of many cross-border experts.

Certainly, if it a smaller ammount, and your departure situation is that you can pull it out at the beginning of the calendar year, just before you return to Canada, and have little other US income that year, this can make sense. Even ...

rhollan,

I will continue to answer question how I see fit, not you.

You are free to do the same.



<i>nelsona non grata... and non pro</i>

You cannot easily use software for the first year taxes, since you at least need to (a) file a 1040NR (unavailable in package) and or file a W-7 for her ITIN, along with your return.

You certainly will not be able to e-file this year.



<i>nelsona non grata... and non pro</i>

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">Isn't there any way to reduce this Quebec tax burden? This is nuts.<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Not really. Have your wife ...

OK big boy, give me your hand (again).

Go to IRS.gov

enter 8833 in the search

Look at the <b>first entry</b> on the hit list...

and presto, the list of whens and when-nots.


Theres a good lad. I hope you can make it all the way back from so deep in the woods.


I guess I should apologize for ...

1. she is a resident until JUly 31st, at which time she will depart and become non-resident, writing Jul 31 on her tax return.

2. You are (IMO) a deemed non-resident until July 31, at which time you will be come non-resident. This means that you file as a deemed non-resident from the time you left ...

My advice is short on details here because I have already posted them dozens of times both on this site and on grasmick... the advice I have given you has been very detailed. Too detailed, in fact.

California will tax your RRSPs by their own rules, so probaly not.

Interestingly, if you held these bonds outside your RRSP, they would not be taxed in Canada at all, since cap gains for US residents aren't taxed in Canada, and Gov't bond interest is not taxable in Canada for US residents by treaty ...

No.

The taxation of RRSPs is very unclear.

If a state wishes to tax RRSPs (as California does) they will make it very clear (as California has), and will provide for time to comply with any current ruling.


Tax deliquency might be a reason to deport (I doubt it), but that is not the same as being ...

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">I wonder if you can elect to file as full year residents, be taxable on world-wide income, and use the Canada/U.S. tax treaty to your advantage to use the FEIE to exclude ...

I should warn you that since you moved to US during 2004, you cannot simply file a regular 1040, using the standard deduction, unless you also report ALL your income form the whole year, including you and your wife's Cdn income.

Otherwise you are not entitled to standard deduction, and MUST file ...

Pretty embarrassing that an IRS phoneline (notorious for not knowing anything -- call back six times and I bet you get a differnt answer each time) was able to throw a dart and give you a better answer than your pro.

Move on.


<i>nelsona non grata... and non pro</i>