So unfortunately I am stuck.
my husband and I filed our taxes already... MFJ status.
1 wk later, i rec'd my T4E for 4k and 1k has been already taken out for non resident taxes from canada. i totally forgot about the EI from last year. I spoke to the accounting office that helped me last year but the guy that was helping me is no longer employed there. the accountant i was talking to had to speak to someone from their office near the border. They said my T4E is "passive income" and it is voluntary to file it. if i ammend my taxes, it will increase our income and I have to pay IRS even with form 1116. This is my 2nd tax yr in US and i have no ties to canada whatsoever. I live in US all of 2010 and I worked in US all of 2010
please help. Do I need to file this? are they correct? I really dont want this popping up in the future and get charged interests by IRS. Especially I am moving to another state in 2 months.
someone help! this was a nightmare for me last year and I ended up dealing with 4 accountants that didnt know anything. i am already dealing with 2 that is not sure and this website really helped me last year.
to ammend or not to ammend my US taxes?
Moderator: Mark T Serbinski CA CPA
EI is general income not passive (which is for investments).
Reporting income is NOT voluntary, It must be reported on your 1040. What is optional is getting credit for the Cdn tax you paid on that money by usng 1116.
You must amend, Do not bother with the accountant you spoke tol he is clueless on these matters.
I guess another question is how you were getting EI and working at the same time?
Reporting income is NOT voluntary, It must be reported on your 1040. What is optional is getting credit for the Cdn tax you paid on that money by usng 1116.
You must amend, Do not bother with the accountant you spoke tol he is clueless on these matters.
I guess another question is how you were getting EI and working at the same time?
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Ok thank u!
Also is it voluntary to file my T4E canada? I'd like to file it if its in my best interest since I have to pay IRS now.
As for getting EI while working.u can claim EI until you r workin full time.I worked part time for a couple of months and I had maximum EI.so I was eligible since my work hours didn't reach the maximum EI, I was able to collect the difference
Also is it voluntary to file my T4E canada? I'd like to file it if its in my best interest since I have to pay IRS now.
As for getting EI while working.u can claim EI until you r workin full time.I worked part time for a couple of months and I had maximum EI.so I was eligible since my work hours didn't reach the maximum EI, I was able to collect the difference
You make a valid point regarding EI benefit claw-backs for individuals employed pert-time. However, it is my understanding that in order to be eligible for collecting EI benefits, an individual has to be (i) available to work and (ii) be physically present in Canada (Employment Insurance Act - Part I – paragraph 37), aside for temporary trips overseas for valid reasons. If you have lived and worked in the US for all of 2010, I don’t see how your absence from Canada would be considered “temporaryâ€.
I, along with nelsona, seem to be concerned that due to some miscommunication between you, your accountants and the CRA, your facts and circumstances were not properly communicated resulting in you being paid income benefits to which you were not entitled. My suggestion is that you revisit the EI benefits paid in prior year. CRA is slow, but eventually they do catch on to these things. Hopefully my understanding of your situation is not accurate, but if it is, you may be exposing yourself to major penalty and interest risk from the CRA’s side. As well, there is the issue of how any future repayment would be treated on the US side, presumably claim of right.
I, along with nelsona, seem to be concerned that due to some miscommunication between you, your accountants and the CRA, your facts and circumstances were not properly communicated resulting in you being paid income benefits to which you were not entitled. My suggestion is that you revisit the EI benefits paid in prior year. CRA is slow, but eventually they do catch on to these things. Hopefully my understanding of your situation is not accurate, but if it is, you may be exposing yourself to major penalty and interest risk from the CRA’s side. As well, there is the issue of how any future repayment would be treated on the US side, presumably claim of right.
There is no problem with the EI that I collected. I'm not sure if you are aware that you are eligible to collect EI due to moving to US to join your spouse.there is an EI department that handles non resident canadians.yes you are righht about being able to work. Therefore, I had to wait to collect EI until I got my social security number.but, you must apply for EI the day you enter the US so you don't lose any time off your EI or time might expire for an opportunity to claim EI.
So I am still waiting on mr nelson to answer my question about filing my T4E in canada even if I'm not a resident?
So I am still waiting on mr nelson to answer my question about filing my T4E in canada even if I'm not a resident?
Ei collected aftyer departure (which is certainly not a problem) is not to be reported on a Cdn tax return, but rather flat taxed at 25%. You need to write to CRA expalining which portion was earned as Non-residnt and pay 25% tax on it.
At the same time you use ALL the witrhheld tax on your departure return, but only the EI from before leaving. and get whatever was overwithheld back.
You should have been issued a NR4 insteda of a T4, thus the tax collected was not NR tax.
Its not a big problem, its just that the tax has to be put in the right bucket.
At the same time you use ALL the witrhheld tax on your departure return, but only the EI from before leaving. and get whatever was overwithheld back.
You should have been issued a NR4 insteda of a T4, thus the tax collected was not NR tax.
Its not a big problem, its just that the tax has to be put in the right bucket.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best