Canadian/US taxes with severance package, EI and RRSP

jiggly_jelloo · Post by **jiggly_jelloo** » Mon Jan 17, 2011 6:15 pm

I moved to the US in April 2010 on a K1 visa and was married later in April. I recieved a severance package in Jan from my former employer in Canada, and I have made a couple of lump sum withdrawls from my RRSP. Currently I have been receiving maternity/parental benefits from Canada. I plan on filing my regular tax return from Canada but I am lost on what I need to claim and how we should claim in the US that will give us the best return (filing seperatly or jointly...we had a baby in Dec, so I am not sure how that will affect our taxes as well). Do I need to report my income from Canada for the whole year, or just the monies I have received since I entered on my visa or from the point that I received my green card?

Thank you for your help!

nelsona · Post by **nelsona** » Mon Jan 17, 2011 6:25 pm

You should be filing a departure retirn form canada, not a regular return. Also, your EI benefits should have flat tax 25% not repoerted on the return.

Review the Emigrants guide from CRA.

You will file jointly in US with your spouse, reporting all world income.

nelsona · Post by **nelsona** » Mon Jan 17, 2011 6:26 pm

Your RRSP shopuld have been wiheld 25% too, and is not reported on your Cdn return either.

jiggly_jelloo · Post by **jiggly_jelloo** » Mon Jan 17, 2011 7:52 pm

Do I still file a departure return even if I am still receiving and will continue to receive maternity benefits for most of 2011?

nelsona · Post by **nelsona** » Mon Jan 17, 2011 11:12 pm

Yes. You should be advising EI that you are US resident, so that the ywill withhold correct NR tax. You are allowed to recieve mat benefits while non-resident.
You should have cancelled GST and CCTB of course.

You live in US.

Have you read the guide yet?