Nelsona, need your help

georgeyn · Post by **georgeyn** » Thu Apr 07, 2011 9:03 pm

Hi, Nelsona, I need your help regarding my situation. I'm a us citizen and moved to Canada last June, and my Canadian company sent me to the states for job training for 2 months (Oct. and Nov., income was taxed by Canada), I have 2 questions:

1. Is this 2-month income taxable for us tax return, if yes, then is double tax, how to avoid that?

2. I have to file extension for physical presence test (Nov.29 2010 to Nov. 28 2011), I guess I have to use form 2350 instead of 4868. is that correct?

Thank you so much for your help.
George.

nelsona · Post by **nelsona** » Fri Apr 08, 2011 6:31 am

Your wages are not excludable by 2555 because of how little time you spent in canada, so simply use 1116 instead.
2555 will only apply against your wages for decemeber, so why bother.

nelsona · Post by **nelsona** » Fri Apr 08, 2011 6:33 am

All your wages are taxable on 1040 -- and always will be. You need to use 1116 for tax credit for 2010, in 2011, you can use 2555.

georgeyn · Post by **georgeyn** » Sat Apr 09, 2011 8:48 am

Thanks so much nelsona, actually, I spent 4 months in Canada in 2010, so I should use 1116 only or use both 1116 and 2555 ?

Another question is extension: should I use 2350 only ? Many thanks.

nelsona · Post by **nelsona** » Sat Apr 09, 2011 2:13 pm

you can't use 2555 for any income before december, since you were not in canada long enough.

I'll let you figure out extension, I don't do mechanics.