Serbinski Accounting Firms

There is a difference between non-taxable and not reportable. Your W-2 income is to be reported in US, and then exempted by the treaty article you mention.

You would report it on a 1040NR.

I assume you mean spousal RRSP.

You would report the entire amount (before tax) as pension income on 1040. The taxable portion would be the growth since you moved to US.

The 25% tax would be used on a form 1116 to write off against the US tax that you owe on the taxable portion.

1. Correct
2. No need to report.

You need receipts for any claim to adjust cost basis to be approved.

No. You MUST pay tax in Canada (and US) on the sale. You will get credit for the Cdn taxes on your US return.

not sure what an SRSP is. Clarify.

Leaving it until you stop working.

Yes. fund as much as possible, your Roth401(k) while working vs. your 401(k). Then when you stop working, but before reestablishing Cdn residency, convert as much of your 401(k) as you can, paying US-only tax on that conversion at that time, making the Roth portion non-taxable forever afterwards.

Then you can claim medical expenses on the NR return, but since you are not reporting world income, your deductions may be limited.

If it is not working with the software you are using, contact them.

No. You need to have foreign income that is taxable in US. In this case it would be best to take the 25K of tax as a deduction.

This thread is for those who have renounced their US citizenship during the tax year. Is this your case?

What capital gains and interest could you be including? Interest is tax-free for non-residents, and cap gains (except for selling Cdn real estate) are not taxable in Canada for US residents.

Just file your 216.

Yes, you could do that, but realize that there is no US tax to claim against. You will be building up some FTC for POSSIBLE future use, but will not get any credit this year, as none of it was taxable in US. The GROSS amount on line 1a of 1116 would still be ZERO, but you would have Cdn tax to repor...

So, as I said, you were withheld correctly. You did not correctly make your withdrawal periodic, thus you were not entitled to 15% rate on the first 10%. Only withdrawals made up to the 10% mark are withheld at 15%. Any withdrawal that puts you over the 10% mark is FULLY TAXED at 25%. Better math ne...

216 election is reported on form T1159, which is VERY SHORT.