Dependent living in Canada for US tax purpose
Moderator: Mark T Serbinski CA CPA
Dependent living in Canada for US tax purpose
Hi, I am a Canadian citizen working/living in US on TN visa. I am filing my US income tax and need to add my mom as my dependent(she lives in Canada as a landed immigrant and still is on my support and has SIN) but she doesn't have an SSN. How can I optain an SSN for her as she doesn't live in US? or Can I use her SIN number in US? Thx!
Because she lives in Canada, the treaty allows her to be your dependant, IF she meets all the criteria.
She isn't entitled to an SSN, but can get an ITIN.
You will include her on your 1040, and file a W-7 for an ITIN along with it. The instructions for W-7 will tell you what docs you need (most difficult is the notarized copy of passport, because you need a US licensed notary or IRS EA which is diffccult to find in canada). It can be a hassle.
Her category would be "dependant of US resident alien" (which you are).
She isn't entitled to an SSN, but can get an ITIN.
You will include her on your 1040, and file a W-7 for an ITIN along with it. The instructions for W-7 will tell you what docs you need (most difficult is the notarized copy of passport, because you need a US licensed notary or IRS EA which is diffccult to find in canada). It can be a hassle.
Her category would be "dependant of US resident alien" (which you are).
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Mark T Serbinski CA CPA
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You can also use a "certifying acceptance agent", to simplify this process. Certifying acceptance agents can certify and sign your W7 after reviewing original identification.
Our firm are certifying acceptance agents.
A full list of certifying acceptance agents in Canada can be found at:
http://www.irs.gov/individuals/article/ ... 39,00.html
Our firm are certifying acceptance agents.
A full list of certifying acceptance agents in Canada can be found at:
http://www.irs.gov/individuals/article/ ... 39,00.html
Mark
As I said, finding an agent (a willling agent) will be difficult to find, given the list is only 25 firms in all of canada...
As carson has reported, their firm will not certify non-clients, so that already small list dwidles even more.
As carson has reported, their firm will not certify non-clients, so that already small list dwidles even more.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
I am in the same situation, i.e. I am a US PR holder and Canadian citizen. My parents are PRs in Canada and do not have their own income. I want to include my parents as dependents in 1040 form. I have the following questions:
1) Is Canadian PR card considered "National ID card" to apply for ITIN ? My parents have foreign passports (not Canadian yet) - so they have to prove somehow they live in Canada. My father has Ontario driving licence but my mother does not (she is not driving). I hope they can apply with foregn passports and Canadian PR cards, but I want to ask your opinion.
2) If Canadian PR card is ok, does US embassy in Ottawa certify a copy of it and a copy of foreign passport ?
3) Lets say everything is ok with the copies and I send them with W-7 and 1040, i.e. include my parents as dependents in my tax return. Do I need to send any documentation to prove that the following tests from pub. 501 of IRS are met ?
1. Not a qualifying child test
2. Member of household or relationship test,
3. Gross income test, and
4. Support test.
4) Even if I do not need to send it, but IRS later wants to audit my tax return I still need to provide documentation, do I ?
Number 1 is not applicable.
Number 2 - I have a foreign birth certificate. What should I do with it ? Translate, authenticate, etc. ? Any comments ?
Number 3 - the copy of Canadian Notice of Assesssment of my parents will be ok ?
Number 4 - this is the tough one. I write the check for my parents every months, but this is from my Canadian bank account to their Canadian bank account. How can I show that to IRS ?
Thank you.
1) Is Canadian PR card considered "National ID card" to apply for ITIN ? My parents have foreign passports (not Canadian yet) - so they have to prove somehow they live in Canada. My father has Ontario driving licence but my mother does not (she is not driving). I hope they can apply with foregn passports and Canadian PR cards, but I want to ask your opinion.
2) If Canadian PR card is ok, does US embassy in Ottawa certify a copy of it and a copy of foreign passport ?
3) Lets say everything is ok with the copies and I send them with W-7 and 1040, i.e. include my parents as dependents in my tax return. Do I need to send any documentation to prove that the following tests from pub. 501 of IRS are met ?
1. Not a qualifying child test
2. Member of household or relationship test,
3. Gross income test, and
4. Support test.
4) Even if I do not need to send it, but IRS later wants to audit my tax return I still need to provide documentation, do I ?
Number 1 is not applicable.
Number 2 - I have a foreign birth certificate. What should I do with it ? Translate, authenticate, etc. ? Any comments ?
Number 3 - the copy of Canadian Notice of Assesssment of my parents will be ok ?
Number 4 - this is the tough one. I write the check for my parents every months, but this is from my Canadian bank account to their Canadian bank account. How can I show that to IRS ?
Thank you.
1) their PR card could serve as their ID.
2) this thread discusses who is elible to certify.
3) No
4) It would probably be useful for you to get a translation of your birth cert. I'm surprised you have not had to do this already for Cdn purposes, and may need it for other reasons in the future.
As to your cheques, why would you think there is some difference in writing a checque from a US or Cdn bank. All your income and accounts are to be reported to IRS at all times, wherever they are, even if they aren't being used. An expense paid in Canada using whatever means, is just as valid as one paid in US.
2) this thread discusses who is elible to certify.
3) No
4) It would probably be useful for you to get a translation of your birth cert. I'm surprised you have not had to do this already for Cdn purposes, and may need it for other reasons in the future.
As to your cheques, why would you think there is some difference in writing a checque from a US or Cdn bank. All your income and accounts are to be reported to IRS at all times, wherever they are, even if they aren't being used. An expense paid in Canada using whatever means, is just as valid as one paid in US.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Nelson, thank you for your quick and detailed reply.
I have a translation of my birth certificate done by Ontario certified translator. However, the birth certificate itself is not "authenticated". I hope it is not necessary for IRS. I successfully got the US immigrant visa without authenticating my birth certificate.
Regarding reporting "all accounts" to IRS - is this true ? It is my first year in US. From my canadian experience, I reported only "saving accounts" to CCRA, i.e. the accounts I had T5 forms for. But what about checking accounts ? Do I need to report it to IRS, if there is no income on this accounts ?
Anyway, lets say I am writing the checks from my checking account (does not matter in Canada or US) to my parents and they deposit them to their checking account. What exactly (papers) should I bring to the interview with IRS (if any) to prove I am doing that ?
I have a translation of my birth certificate done by Ontario certified translator. However, the birth certificate itself is not "authenticated". I hope it is not necessary for IRS. I successfully got the US immigrant visa without authenticating my birth certificate.
Regarding reporting "all accounts" to IRS - is this true ? It is my first year in US. From my canadian experience, I reported only "saving accounts" to CCRA, i.e. the accounts I had T5 forms for. But what about checking accounts ? Do I need to report it to IRS, if there is no income on this accounts ?
Anyway, lets say I am writing the checks from my checking account (does not matter in Canada or US) to my parents and they deposit them to their checking account. What exactly (papers) should I bring to the interview with IRS (if any) to prove I am doing that ?
have you been filing your yearly TD-90.22-1 file reporting all uyour foreign accounts? If you have more than $10,000 total in these accounts, the yALL must be reported or there is a stiff fine.
Also, since you now live in US, your accounts ion canada are supposed to be taxed as a non-resident. have you advised all your accounts that you now live in US?
As to an audit, how about worrying about that when it happens, eh?
Also, since you now live in US, your accounts ion canada are supposed to be taxed as a non-resident. have you advised all your accounts that you now live in US?
As to an audit, how about worrying about that when it happens, eh?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing