Hi, I've started working in the States under the TN since September 05. I have no Canadian income during 2005. With all the advice on this forum, I have...
1. filed the 'general tax' package along with the BC return (where I lived up till September)
2. Put a departure date on my return
3. Put my income from the States under 'other' income and claimed the tax-treaty deduction on line 256. (The international tax person from CRA, whom I have spoken over the phone with, have told me to do so)
Is that the best way to do it? Or should I not mention my TN-income at all? Also, I have carried-over tution fee and student loan interests; should I claim those on my Cdn or US tax return? Thank you.
Doing my own Cdn taxes
Moderator: Mark T Serbinski CA CPA
If you put a departure date on the return, it means you have become a non-resident from that date.
therefore the US wages you recived after that date are not to be reported at all.
Besides, the incoem would not be 'other income', it would be reported under the same categories as it would had it been earned in canada: wages, interest, etc.
Any carry-overs you have in Canada can only be used in Canada.
You may use current expense in US on your US returns.
therefore the US wages you recived after that date are not to be reported at all.
Besides, the incoem would not be 'other income', it would be reported under the same categories as it would had it been earned in canada: wages, interest, etc.
Any carry-overs you have in Canada can only be used in Canada.
You may use current expense in US on your US returns.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Thanks Nelson.
I was confused about my tax-residential status since I was in Canada from Jan to Aug 2005. Now regarding my US tax return, I am going to file as a non-resident (1040NR) since I don't satisfy the GC test nor the substantial presence test. Which means, I'll file as a non-resident in both countries; I thought we can't be non-residents in both countries?
Thanks again!
I was confused about my tax-residential status since I was in Canada from Jan to Aug 2005. Now regarding my US tax return, I am going to file as a non-resident (1040NR) since I don't satisfy the GC test nor the substantial presence test. Which means, I'll file as a non-resident in both countries; I thought we can't be non-residents in both countries?
Thanks again!
If you live in US, you are by trety a US tax resident, so don't worry about that. You don't have res ties in Canada.
AS a Cdn , you are not required to meet the SPT to file as a resident. Additionally, by being in US for at least a month in 2005, you are entitled to elect to file dual-status if you wish (first-year choice).
You may even find it beneficial to file a full-year 1040, reporting all income, and excluding your Cdn wages with form 255. This would almost surely yeild the lowest uS tax rate.
You definitely are not limited to 1040Nr, although filing this way would not impact your non-res claim in Canada.
AS a Cdn , you are not required to meet the SPT to file as a resident. Additionally, by being in US for at least a month in 2005, you are entitled to elect to file dual-status if you wish (first-year choice).
You may even find it beneficial to file a full-year 1040, reporting all income, and excluding your Cdn wages with form 255. This would almost surely yeild the lowest uS tax rate.
You definitely are not limited to 1040Nr, although filing this way would not impact your non-res claim in Canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
confused by H&R block accountant
I've just spoken to a HR block person today; and she said if I file 1040NR then I would get all my federal withheld-tax back (the ones that get deducted off my paycheque automatically). That sounds like a pretty good deal, especially if I don't have to report my US income to CRA because I'm no longer a Can-resident; and that the IRS would give all my fed-tax back also because I'm a non-resident.
Would that be a better alternative than to file as a resident then? Especially since I do not qualify to file a full-year 1040. I have no qualifying deductibles besides my moving espense....no interest/dividens..etc.
Would that be a better alternative than to file as a resident then? Especially since I do not qualify to file a full-year 1040. I have no qualifying deductibles besides my moving espense....no interest/dividens..etc.
WRONG!
Generally, the tax rate for non-residents (using 1040NR) is HIGHER than using 1040, so HRBlockead is wrong, as usual.
Just because you file a non-resident return does not mean that you won't pay US tax on your US wages! Even if you truly were a non-resident, your fist tax obligation on ALL income earned in the US is to the IRS.
There are 100's of people who are screwed yearly by walking into an HRB booth to have their non-resident taxes done.
They, quite simply, are not able to do anything but the simplest returns.
Generally, the tax rate for non-residents (using 1040NR) is HIGHER than using 1040, so HRBlockead is wrong, as usual.
Just because you file a non-resident return does not mean that you won't pay US tax on your US wages! Even if you truly were a non-resident, your fist tax obligation on ALL income earned in the US is to the IRS.
There are 100's of people who are screwed yearly by walking into an HRB booth to have their non-resident taxes done.
They, quite simply, are not able to do anything but the simplest returns.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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worryfreeinvestor
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TurboTax
TN Holder, is 2005 the year in which you moved to the US, or were you there the full year? If the former, I'm glad to hear Turbo Tax worked for you. Did you elect to file as a U.S resident for the whole year or file a 1040NR with the date of arrival?
The ITIN will be issued because you filed a W-7 along with your return.
If you didn't, the IRS will eventaully catch up with you and deny your claim, wherupon you will have to apply for an ITIN with W-7, and get the mess cleared up in, say, 18 months.
I sure hope you submitted a W-7 with your 1040.
If you didn't, the IRS will eventaully catch up with you and deny your claim, wherupon you will have to apply for an ITIN with W-7, and get the mess cleared up in, say, 18 months.
I sure hope you submitted a W-7 with your 1040.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Yes, My wife moved to US on Oct 2005 and everything is fine. I owed money to IRS and State, both got thier money and
Nelson, I've got ITIN for my wife Thanks for your help.
BTW. I did file regular 1040 beacuse I was working from Jan 2005 in US as full year. But my wife moved with me on Oct.
I did not file CRA, I am still thinking of it !!!!!!!!!!
Nelson, I've got ITIN for my wife Thanks for your help.
BTW. I did file regular 1040 beacuse I was working from Jan 2005 in US as full year. But my wife moved with me on Oct.
I did not file CRA, I am still thinking of it !!!!!!!!!!