US-Canada Tax Credit

[macwhorter]

hi--

I am a US citizen married to a Canadian citizen and, as of October 1, 2006, a new permanent resident to Canada. I recently was approved for long term disability from my US insurance company. I have a couple of questions:

1) Must my disability income (Oct-Dec 2006) be included in our joint return in Canada next year?

2)I know I must file a US return for 2006 (I was employed through April 2006) but can i claim any credits on my Canadian return for taxes paid to US for 2006?

many thanks,
Paul

[nelsona]

1. Generally. insurance payments are treated as they are in US.

2. Not only must you file for 2006, as a US citizen you will continue to file a US tax return forever (subject to income threshholds of course). There are many threads dealing with US citizens living in Canada.

Your Cdn return will only start on October 1 (assuming that is the day you moved to Canada), so no non-Cdn income would be reported from before that date, thus there would be no Us income or tax to be accounted for on your Cdn return (you each file your own returns in Canada -- there is no joint return).

You should look at the "Newcomers" guide on the CRA website. This will instruct you on how to report your arrival in Canada, and your reporting obligations for this year.

[macwhorter]

thanks nelson. can you tell me what CRA website is?

[nelsona]

CRA is the Canadian Revenue Agency (our IRS).

You were bright enough to find this site, I'm confident you will find the CRA website, too