Serbinski Accounting Firms

So they want the tax first, and then you appeal?

I would want to appeal first, methinks.

Had you added a note back in 2003 you would have been fine... now they will 'investigate'

The rate is 15%.

Not sure what you meant about the the IRA. That doesn't change its tax treatment in either country.

.. and just for my own peace of mind.

Did you or did you not report these contributions as earning on your Cdn tax return, during 1996-2001.

If you did, you might want to include copies of your W-2 and T1s to show that you did just that.

Reviewing your posts, you seem to have been very careful ...

This is good news.

To assist you in making your claim, remember 2 things;

Your 401(k) is recognized as an Employer Benefit Plan (EBP). Very important to use this term.

and that ITA (6)(1)(g)(ii) allows exclusion of income that is considered employee contribution.

Look at IT-502 para. 19, and, if ...

Just to clarify:
If, however, you lived in Canada all that while you were working, You should have reported the income (in the year you withdrew it) with a note indicating that it was not taxable, due to it being the return of your previously taxed contribution. You would have detailed records of ...

In the year of departure, you report ALL world income earned before departure, and then ONLY CDn income which was not subject to flat NR tax after departure.

This highlights the importance of telling your broker/banker/etc that you are non-resident.If you have not done so, this weakens your claim ...

When you withdraw funds from RRSP, you will be taxed on the growth by IRS. But for california, since you have already been taxed year by year on the growth, you will only be subjec tto tax o nthe growth from that year. california procedures allow for this.

Ah... "essentially" does not mean "actually" in your case does it.?

If not. then the money is fully taxable in Canada. Unl;ess you actually reported the contributions as income, you cannot exempt any of the proceeds.

If, however, you lived in Canada all that while, You should have reported the ...

You should be filing in both US and Canada, and reporting ALL your icome in BOTH places.

Then you will take foreign tax credits, where eligible.

Please read more on this forum, your case is not complex.

I might answer more specifically --- but only after the filing deadlines have past.

As I said before, the stock option is part of your Cdn wages, so must be included with your wages on your Cdn return.

The tax withheld on that is NOT NR tax (QC is not allowed to collect NR tax). It is tax payment to be included on your Fed and QC return. Only the tax owed when you calculate your ...

Heck if I know

Form 8891, if you elect to defer, sheilds this income. California is the only state that does not go along with this.

Its not a matter of legalities, its a matter of simplifying your life.

You will have to pay Cdn tax and payroll tax. If you don't get your firm to pay it, the government will. Or will ask you to pay employers share.

And you shouldn't be paying FICA either.

Also, even payroll tax aside, you face ...

You have a good case for declaring departure in january. You should file a tax return for 2006 with adeaprture date in January. Make sure you review the "Emigrants Guide" from CRA, as well as NR73 (don't submit, just review) to be sure you have done everything that you can to sever ties (this is to ...

Of course. Reinvested dividends (in a non-sheltered account) are always considered income to reported yearly. California requires tax to be paid on this