US person in Canada, 14 years, never filed a US return

andsoitgoes · Post by **andsoitgoes** » Tue Feb 28, 2012 12:48 pm

But should I be hit with the AMT?

Would I also be required to pay that if I took the exclusion?

Is there any way I can avoid the $357?

nelsona · Post by **nelsona** » Tue Feb 28, 2012 1:51 pm

I'm confused, is your child tax credit $357 or is your AMT $357?

andsoitgoes · Post by **andsoitgoes** » Tue Feb 28, 2012 1:58 pm

It is saying that I owe $357 for AMT cutting the total refund to ~$1600

nelsona · Post by **nelsona** » Tue Feb 28, 2012 3:15 pm

So, your additioanl child tax credit is the full $2000.

AMT is what it is.

andsoitgoes · Post by **andsoitgoes** » Tue Feb 28, 2012 3:18 pm

There's no way to get around it then? Would I still be in need to pay that if I was to do the 2555 exclusion? I can't believe that I could end up owing tax if I didn't claim my kids.

nelsona · Post by **nelsona** » Tue Feb 28, 2012 3:33 pm

So, you aresaying if you do not ask for the child tax credit, you owe nothing.

And if you ask for the child tax credit, you get $1600 back.

While it isn't perfect, you are getting some back.

If you did 2555, you would not get any child tax credit. that is why yo have to do 1116.

Note that they have fixed this for subsequent years, and foreign tax credit should not give AMT.

By the way, are you sure you can go back to 2006? 3 years is the limit for claiminga a refund.

andsoitgoes · Post by **andsoitgoes** » Tue Feb 28, 2012 3:35 pm

You had mentioned before that I might get refunds for longer. It's for sure 3 years?

nelsona · Post by **nelsona** » Tue Feb 28, 2012 4:37 pm

I don't remember saying tha tyou could get refunds for more than 3 years. I prooably said you may have to file to prove you owe no tax for upto 6 years, but years 4-6 would not generate refunds.

andsoitgoes · Post by **andsoitgoes** » Tue Feb 28, 2012 4:43 pm

Okay. Last questionS, what do I need to send in to the IRS? Do inner to send copies oft T4s as well as my assessment, or will my notice of assessment be enough?

Do I need to send in my taxes in separate envelopes per year, or can I combine them in one mailing envelope of I separate them inside.

nelsona · Post by **nelsona** » Tue Feb 28, 2012 4:50 pm

You don't need to send ANYTHING along with the returns. You keep all info in case they question you.

I would send the last 3 years (2008,8,10) togethr. I would send 2011's separately. I would send the FBARs in one package for the past 3 years to the Detroit address. And send 2011's by itself, later.
I would only send any previous years (before 2008) 1040's if I owed money on the first 3. Otherwise keep 'em until they ask for them, as they are no benefit to you, and can only harm you.

andsoitgoes · Post by **andsoitgoes** » Tue Feb 28, 2012 4:55 pm

I don't need to do FBAR if I don't have any accounts over 10k, right?

andsoitgoes · Post by **andsoitgoes** » Tue Feb 28, 2012 5:38 pm

Sorry - one other thing that I didn't realize, because my income was lower than that of my wife, our Universal Child Care Benefit Statement was claimed to me, increasing my income by 2,400 for the year. Can i just include that in my full income? I assume I can, since it WAS income, but I'm just putting the total income into the W2 section through Turbo Tax.

Should it go elsewhere? Does it matter?

nelsona · Post by **nelsona** » Tue Feb 28, 2012 5:57 pm

You need to FBAR if the total of all your accounts is more than $10K, that includes ANY account you can touch, including your RRSP. so if you have 2 accounts of $5000, they both need to go on FBAR.

Very few people don't have to file FBAR.

nelsona · Post by **nelsona** » Tue Feb 28, 2012 5:58 pm

Each type of income you ahve has to be reported in the correct line. Wages go on one line, interst goes on another, etc.

Its NOT wages, so doesn't go on your fake W-2.

andsoitgoes · Post by **andsoitgoes** » Tue Feb 28, 2012 5:58 pm

I guess I'm one of the few people that has no money ;)

At no time that I can remember did I have over 10k combined in any accounts. now 10k in DEBT that's another story, but never did I have a positive balance, even combined, of 10k.

I just finished 2008 and the AMT was not noted, or charged, and it looks like a refund of 2900 is coming back to me...? I'm not going to complain.