CDN Citizen US Resident

Ottawa123 · Post by **Ottawa123** » Mon Dec 03, 2012 11:43 am

I need a little bit of help.....

I am working in US on a visa for the past two years. I have been filing taxes in the US but forgot to mention that i made 144$ in interest the first year and 154$ the second year in my Canadian bank

Should i file an amended return for the past two years?
Is their something else i am suppose to take care of?

Thank you

nelsona · Post by **nelsona** » Mon Dec 03, 2012 11:48 am

Yes, you basically under-reported your tax and are subject to interst and penalty.
You also need to include the accounts on FBAR report or face heavy fines.
I'm assuming you have RRSPs? You shpould be reporting these too, or are subject to serious fines.

Did you properly take care of your Cdn exit return?

Ottawa123 · Post by **Ottawa123** » Mon Dec 03, 2012 12:36 pm

unfortunately i didn't take care of the Canadian tax as well. I called CRA and i was told to write a letter to the International tax service and fax it in.
which i will do immediately.

I have RRSP under 1000k. Would it be easier and beneficial if i just liquidate them at this point? If not which form do i need to fill out?

Ok i see the FBAR form online TDF 90-22.1?

Should i just fill out form TDF-90-22.1 for 2011? or should i fill out 2 one for each year.

I am thinking all i have to do at this point is to File an Amended tax return 1040x for the past two years and place foreign tax interest and refile the tax.

Inform US about the RRSP or Liquidate if possible (easier)

File FBAr for the past year or past two years separately?

Anything else i am missing?

Thank you

nelsona · Post by **nelsona** » Mon Dec 03, 2012 8:10 pm

You also must file form 8891 for ech RRSP you have, and include your RRSPs on FBAR. Each yeasr you field a 1040. I suspect taht you dod noy file you initial 1040 correctly either, since, unless you reported all your Cdn income on that 1040, your 1040 is under reported.

Just how simple did you think moving to another country was anywys?

Ottawa123 · Post by **Ottawa123** » Tue Dec 04, 2012 4:40 pm

In my week very week defense i was just following what the tax accountant told me. Well live and learn hopefully the penalties are not that much.

just one more thing in 2009 i filed tax in Canada and US both as resident can i go back and change 2009 US to non resident? i worked in the US for 2 months. Once again my accountant took care of this and now i guess if not i will have to pay the price

Thank you

nelsona · Post by **nelsona** » Tue Dec 04, 2012 4:59 pm

You can and should fix 2009 for both countries. How you file in each country that year is really independant from each other.

You should definitely file a departure return for canada, by amending the deaprture date and ensuring you meet all the requirements of the "Emigrants Guide" (deemed departure tax, etc), and report NO US income from after your departure date. Should be easy enough to fix, and may even yield a refund.

For US, since you did not meet SPT for that year, you could have filed a 1040NR, reporting only the US incoem you made for 2009. Filing a 1040 means world income.

Clearly, you were not dealing with a cross-border specialist.

Junoon123 · Post by **Junoon123** » Wed Dec 05, 2012 12:56 pm

Hello Ottawa it seems you and i are in the same boat the difference is timeline. You go back to 2009 and i go back to 2007.

i was told by CRA to file an NR73 however after i contacted an accountant i was told that the way to take care of this is to refile 2007 tax return and fill form T1161 (stocks) and close the matter
For US

i have to file an amended tax return for the past 3 years and show them all interest earned from Canadian bank which is not that much in my case.
My problem is the 2007 tax return which i filed in both countries as Resident. In 2007 i should have filed taxes in US and not Canada but stupid me i filed the return in Canada and also put down in US that i am a resident which means i have to refile return in US and i can't get anything back from Canada as the statute of limitation for that has expired.

If i find anything else from my accountant i will post and let you know.

Please note i am not giving you any financial advice i am just like you who made a mistake and now trying to sort out the best possible scenerio and close the matter.

Thanks

nelsona · Post by **nelsona** » Wed Dec 05, 2012 1:22 pm

"i have to file an amended tax return for the past 3 years and show them all interest earned from Canadian bank which is not that much in my case"

Just tto clarify, Junoon means he has to amend hir US return to add the interst, and to make sure he includes the account in FBAR.

He DOES NOT file a Cdn return for this interest, which is not taxable in canada, and would not be reported on a return when one is not resident, it would be taxed a flat rate, separately.

His accountant seems woefully out of his depth.

Junoon123 · Post by **Junoon123** » Wed Dec 05, 2012 1:48 pm

Thanks for the correction yes Nelson you are correct.

My accountant pretty much provided the same info as you. He said exactly what you did CRA not an issue the issue would be on the US Side.

Thanks for all your help.

Ottawa123 · Post by **Ottawa123** » Wed Dec 05, 2012 2:13 pm

Thank you both.

Just got off cra and i am being asked to file the return from 2009 in Canada and i will get credit for tax filed in the US

Junoon123 · Post by **Junoon123** » Wed Dec 05, 2012 2:44 pm

you should call the international CRA line. Seems like you spoke witho the non filers dept they won't know that much. Explain to the international folks what happened and get assistance their.

i am just telling you what i did. From my understanding you just have to fix your 2009 return and you should be ok.

Thanks

nelsona · Post by **nelsona** » Wed Dec 05, 2012 5:39 pm

Don't bother with CRA telephlunkies, they are notoriously incorrect.