Can these incomes be exempted from US or Canada taxes?

breton06 · Post by **breton06** » Wed Apr 04, 2012 1:13 am

Oh, I forgot to mention... My husband worked in te U.S. for a little more than 2 years before we married and lived together in canada. So he went from being a Canadian resident, to an americain resident for about 2 years to a canadian resident for 1 1/2 year and now we will both be U.S. residents. This will not be his first U.S. declaration.

Does this change anything regarding our eligibility to get the first year election for be considered as being a U.S. tax residents?

breton06 · Post by **breton06** » Wed Apr 04, 2012 1:59 am

Another concern... During my 2011 maternity leave, my canadian employer contributed to my canadian pension fund with a couple thousand dollars. What should I do with this?

nelsona · Post by **nelsona** » Wed Apr 04, 2012 5:36 am

You are not "electing" to be a US tax resident. You are. But past doesn't matter in any event.

Just file full year 1040 including all income from every source. The pensin contribution is not income.

breton06 · Post by **breton06** » Wed Apr 04, 2012 2:37 pm

So no concern about the 2011 (and there will be a 2012 too) contribution of my employer to my pension fund? I'm asking because I know that for my RRSP, once I'm in the U.S., I can not put any money in it.

Thanks again.

nelsona · Post by **nelsona** » Wed Apr 04, 2012 5:27 pm

There is no law that prevents you from putting new funds in RRSP while in US. Most compnies don't allow it, but it is not illegal at all. You do need to be moving your RRSP to a broker that will deal with you in US however, regardless of whether you want to contribute or not.

Thre is certainly no rules against pension funding.

breton06 · Post by **breton06** » Sun Apr 15, 2012 1:14 pm

Thanks Nelsons and JG, you've been so helpful!

Nelsona, you said "Also, QPIP is probably supposed to be flat taxed at 15% (by fed) and not by quebec after departure. You will need to determine what was paid to you before departure and what was paid after. So, you should get quite a refund from MRQ. But it will be all taxable in US."

Will the refund from the MRQ be a credit on my tax return? I'm working with Turbotax (4 returns : one federal before/after departure and same for quebec).

Since I didn't let them know I had left the country, they might not have taken the correct %. Should I then mention art 217 or treaty exemptions on my CDN return?

Thanks!

nelsona · Post by **nelsona** » Mon Apr 16, 2012 7:02 am

There is only one return fedral and one return QC for your departure year. You should not be reporting any income after yoiu left on yoyur QC return. You should only be reporting it federally.

breton06 · Post by **breton06** » Mon Apr 16, 2012 8:20 pm

That is good news! As for California, I only need to report the taxable income (work income, not t4E income from qpip), and only for the time I was a Ca resident, right? Is that still true if the federal is mfj with the election as residents for the whole year? Thanks!

nelsona · Post by **nelsona** » Tue Apr 17, 2012 7:37 am

You need to report ALL income recieved worldwide while resident of california.

Where did you get that your qpip was not taxable?

breton06 · Post by **breton06** » Tue Apr 17, 2012 2:14 pm

Someone from the Ca State gov.'taxes chat line wrote me this : "Unemployment compensation is not taxable by California, even if the unemployment is paid by a state other than California". They also said that I didn't had to declare incomes owned in Canada a a Canada resident in the state declaration. So I was wondering if I could fill a federal and declare incomes for the full year and do a dual ststus declaration on the state level...

nelsona · Post by **nelsona** » Tue Apr 17, 2012 2:30 pm

From the time you move there, you are not a Cdn resident, so what the ftb said was correct, but you are not Cdn resident.

I'll take his work for EI, but qpip is not EI.

Of course you would do a split year return in california, jus like if you moved for Idaho. You could still do full year 1040 for IRS.

breton06 · Post by **breton06** » Tue Apr 17, 2012 3:49 pm

I tought QPIP benefits could be conidered E.I. as they are reported on the same kind of form (T4-E).

Thanks for all your clear answers!

breton06 · Post by **breton06** » Mon Aug 27, 2012 3:59 pm

Hi! Did our canadian tax returns and are ready to start the us ones...

Can we get a credit from the irs for taxes payed in Quebec before our emigration to the Us?

nelsona · Post by **nelsona** » Mon Aug 27, 2012 8:42 pm

Yes, on the US income only, and only after having taken all you can take on the Cdn federal return.

JGCA · Post by **JGCA** » Tue Aug 28, 2012 10:05 am

Single he was referring to was simply the basis they witheld tax from him in Canada, it was an estimated tax base fro calculating the witholding that is all it ius not in any way a determination of your filing status.

If you choose to file a full year 1040 with all your worldwide income you still have to follow the guidelines you do not qualify ad Head of Household unless you meet the criteria check out teh requirements.

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Can these incomes be exempted from US or Canada taxes?

Tax credit for provincial tax income