Canadian Employment Insurance reporting?

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flames9
Posts: 50
Joined: Fri Apr 08, 2005 9:00 am

Canadian Employment Insurance reporting?

Post by flames9 »

Hello. Quick bit of info: Non resident of Canada since Dec 2004, Permanent resident of USA Since then, and I am married. Commencing in Jan 2005 I received EI benefits from Canada. They took off the non resident tax of 25%, I had no USA income for 2005, I'm a student (not considered full time though) Do I have to include my Cdn EI income on my USA tx return? I have heard to report it on the 1040 in "other income" and claim back the taxes on form 1116 Thanks for the help Scott
flames9
Posts: 50
Joined: Fri Apr 08, 2005 9:00 am

Post by flames9 »

Forgot 1 more thing, Just to ensure I am doing this correct regarding my RRSP's stil back in Canada.

1. Last yr reported $15000 on line 8 on form 8891.

2. I left the Armed forces Dec 2004 and the severnece $$ They gave me was Put into my RRSP's.

3. At the end of Dec 2005 I have 41747 (cdn) market value, Or 40878 (cdn) book value. I belive I use the book value converted into USA currency?

4. Put that Number in Line 8?

5. Line 5 is beneficiary, Line 6A, should that be yes or no? I made ia 8891 in 2004, so I take it the answer should be YES? If so then I put the difference of the $15000 and the approx $40,000 into Line 7a, and since I didnt receive any income from it, would be ZERO in line 7b?

6. Should line 6c be checked?

Sorry for the questions, hope I made it clear. Thanks, Scott
Walt
Posts: 1
Joined: Sun Mar 12, 2006 9:23 pm

Post by Walt »

Hi,

You say they withheld 25% non resident tax from the EI? What type of information slip did they send you for the EI? Was it a T4E or was it a different slip? Did it specifically indicate that the tax withheld was nonresident withholding? Thanks. Walt
flames9
Posts: 50
Joined: Fri Apr 08, 2005 9:00 am

Post by flames9 »

Yes they sent me a T4E. As well you can view the T4E at:
http://www1.servicecanada.gc.ca/en/isp/ ... info.shtml
You need the 4 number access code that was on each of the EI statements mailed to you each month!!
nelsona
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Location: Nowhere, man

Post by nelsona »

There is an 8891 thread for those questiuons...

Yes, your EI is reported on 1040, on the same line as any US UI would be reported, see the 1040 guide on where to report UI.

The EI is considered foreign income, anmd the tax withheld is eligible for tax credit or deduction.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
flames9
Posts: 50
Joined: Fri Apr 08, 2005 9:00 am

Post by flames9 »

Thanks nelson

After reading the 8891 topic I have come to this conclusion:

1. take more time to do a proper search!

2. On line 6a I will check YES, since I filed a 8891 for 2004

3. Line 6C will leave UNCHECKED

4. Line 7A & B will be ZERO

5. Line 8 will be whats in my RRSP acct at the end of Dec 2005 in USA currency!!
(I had approx 15000 in 2004, now $40,000 for 2005)

Cheers
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Remember to inclusde all your severance as INCOME on your 1040. The fact that you put it in an RRSP does NOT reduce your US tax obligation.

Sorry :cry:
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
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Post by nelsona »

Maybe you are using 'severance' in the wrong way.

I ask this because you said you received EI sarting immediately after stopping work, and you got severance.

Usually, one can't get EI until their severance is 'used up' (ie. EI divvies up your severance over so many weeks, then starts EI after that).

If what you call severane is merely a rollover of you 'pension' then you are OK from a US point of view.

But if this is truly a retirement allowance, then, although some or all of it could have been put in Your RRSP (which you did), it is considered incvome in US, and the RRSP contribution is not deductible.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
goldyy9
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Re: Canadian Employment Insurance reporting?

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