Serbinski Accounting Firms

So, here's what happened in the end:

I mailed in my ECI return in mid-April and the IRS refunded me this week, but rejected my spousal exemption because she doesn't have an SSN/ITIN. (Pub 519, page 27 clearly says she needs an ITIN and I missed that). So I paid graduated tax of $1318 plus the 10 ...

According to IRS Pub 502 (page 16), it appears that while foreign prescriptions imported into the USA are indeed excluded, one is permitted to:

"include the cost of a prescribed drug you purchase and consume in another country if the drug is legal in both the other country and the United States ...

On the issue of HSAs,why would one not be able to use it in Canada to reimburse oneself for allowed medical expenses such as prescriptions, etc, in a tax-free manner? I didn't come across anything suggesting the IRS would only allow HSA withdrawals for medical expenses incurred in the USA, and ...

In a situation similar to yours, I had a cash only TFSA with Tangerine and I did not submit 3520. I did report it on my FBAR, and I declared the interest on Schedule B. I never heard back saying I did something "wrong".

Oops - forgot to clarify - with the ECI route, I didn't both claiming anything under Part L of Section OI on the 1040NR.

I'd put this off for a number of months - just prepping my returns.

First problem was the my 1042-S stated income code 14 (Real Property Income) instead of 15 (Pensions, annuities...). Took three weeks to get that fixed :evil:

On the 1040NR, ECI will have the lowest tax burden. The pension was ...

I received a letter from the fund today with an explanation of their reasoning. The fund is relying on IRS Info Ltr 2004-0221(https://www.irs.gov/pub/irs-wd/04-0221.pdf), which says lump-sum payments are not covered by the treaty and therefore taxed at 30%.

I'll see what the IRS says in 2017, and ...

Hi Nelsona,

Thanks for the details and the pointer to Pub 901. There is indeed too much ambiguity here from the IRS!

I'm befuddled whether this would be considered ECI. The money in the fund came from a mix of my wages (in lieu of social security, because I was a state employee) and employer ...

Nelsona - a much belated 'thank you' for the advice. I found the relevant rules saying I CANNOT claim moving expenses - thank you for saving me a headache! I kept the HSA intact for the time being.

The current problem is that my retirement plan withheld the full 30% when I requested a payout of my ...

After two years as a TN in the US, I'm about to return to Canada. I'd like to ask for any advice on my plan below: hopefully it works and will be useful to anyone in a similar situation! My goal is to minimize the amount of paperwork come tax time!
Â
Situation: Departing mid-Dec for Canada. Last ...

I left line 12 entirely blank. The instructions state:
"Do not include time spent in the United States or its possessions before your period of bona fide residence or physical presence, whichever applies, began or after it ended".

I think that's the right thing to do, but the IRS can tell me if I ...

Did you see the 2555 instructions for 13a?

If you submitted a statement of nonresidence to the authorities of a foreign country in which you earned income and the authorities hold that you are not subject to their income tax laws by reason of nonresidency in the foreign country, you
are not ...

jmg,

I used the 2555EZ that doesn't ask the same questions as in 2555, so I didn't have to answer those. If i did, I would have YES for 13b, since Canadians are required to pay income tax on all Canadian-sourced income.

Why would you? Does your state explicitly ask you to do so?

JMG: I filled out my forms by hand, using 2555-EZ instead of the full 2555, as I didn't have the housing stuff to worry about.

Nelsona: In both our situations, this was income earned in 2014 for work done in the prior year. As cash-basis taxpayers, the instructions for 2555-EZ indicate "Foreign ...