Serbinski Accounting Firms

Got it. Thanks for confirming. :)

Hi nelsona,

I am about to send my US return but I still have some doubts about something. My wife is considered as US resident since March 19 2012 as you know and I was wondering if I have to remove the amount of money she got before that date. Let say she got 18000 $ in Maternity leave in 2012 ...

Yep I can do that too to get a refund from Canada. But with the same logic explained before that will decrease the foreign tax credit in the US by the same amount of the refund. It's equivalent except that I will have few more bucks of penalty on US side.
For now I prefer not to maximize the RRSP ...

Whaa. :shock: Sorry I didn't mean to offend you. I understood what you said about the RRSP but I think in my case it still beneficial to deduct the RRSP to avoid paying something for Canada even if that means I ll pay more tax in US.
So that s why I don't think I made a mistake according to what you ...

In fact on the T1 I have there is no line numbered 483. I was referring to the line called " This is your refund or balance owing". It s located between line 482 and 484 and 485. So I assumed it was line 483. I hope for you it was the same.

Sorry I still don't see the mistake I made. Can you ...

I didn't say the amount on line 435 was not reduced : "
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When using the RRSP deduction it is equivalent to reduce the amount shown on line 435 to have line 483 equals to 0.
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So because the amount on 435 was reduced and because 437 is a constant, line 483 is reduced. I just computed ...

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Your explanation is incorrect. RRSP deductions go BEFORE line 435. so, if she uses a deduction, then this reduces line 435.
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That's exactly what I said in my previous post :)

She can contribute to her RRSP even abroad if she does not go over the contribution limit allowed. She ...

Ok so everything is good then :) The amount shown on line 435 is not 0. It consists in our case only of Net federal Tax (420) + Provincial Tax (428) (my wife don't have CPP, EI premiums and Social Benefits repayments). When using the RRSP deduction it is equivalent to reduce the amount shown on line ...

Sory I meant line 435

The tax I should report on f1116 is the tax paid to Canada shown on line 235 in T1 General. Do you agree with that ?

I used her RRSP deduction to avoid her owing something but that doesn't mean she hasn't paid taxes. UCCB and Maternity leave benefits are taxable. Some tax she paid was already taken at the source. It's written on her T4E.

You see that's still the thing that does not sound right to me. Indirectly I ...

Unfortunately yes she spent more than 30 days in the us before she had her TN. But thanks for the information you provided, that was very informative.

So in the end I will still use form 1116 to claim a foreign credit. For the Canadian report I will use her RRSP to nullify the amount she owe to ...

I m back regarding the suggestion of using form 2555. To get the Foreign Earn Income Exclusion you have to meet at least one of two tests :

1 - Bona Fida Residence test
2 - Physical Presence test

The Physical Presence Test determines if you were physically present in an other country for at least ...

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No, you can only use the actual tax you paid on your Cdn return, as calculated in the end, after all your deductions are applied. What I said earlier was that you report all her Cdn INCOME on the US return, without deducting any deductions including RRSP, since these are not deductions ...

Thanks a lot for your reply. Yes my wife got her TD visa March 19th and regarding the presence test she is considered as a US resident for tax purpose. As for the UCCB she still receives it but I know we will have to pay it back since she left Canada. So I just considered an amount proportional to ...