Help needed - Part year Canadian, Part year U.S

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

U3Brutus
Posts: 14
Joined: Thu Oct 05, 2006 10:04 pm

8833 and treaty position

Post by U3Brutus »

Nelsona,

Regarding child tax credit....

A United States citizen who is in my situation is able to claim child tax credit. So based on XXV non-discrimination clause, a Canadian citizen should also be able to claim child tax credit. Correct??

It seems I need to take this treay position to clain child tax credit. Do I not?

Thanks.
U3Brutus
Posts: 14
Joined: Thu Oct 05, 2006 10:04 pm

OK..I think I finally got it...but...

Post by U3Brutus »

By asking so many questions, I hope I have not made you think "enough is enough" and not bother helping me...
Your note that you are electing to have your spouse treated as a US resident will be sufficient. This is not a treaty position.
1. What do you mean by a note? Does this note need to be notarized? Do I write it on 1040 itself? or sepearet piece of paper?

Or are you referring to Pub 519 page 10 about making a declaration? If this is the case, what about the wording
If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire year. Generally, neither you nor your spouse can claim tax treaty benefits as a resident of a foreign country
2. This means I will have problems using 2555 which is a treaty position, correct?

3. It seems like I am in a catch 22. Am I not?

4. If I do want to use 8833 and take a treaty position for filing 2555, what article should I specify on 8833?


Thanks!!
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

The child credit is carefully worded to require that the child have a Social Security number, regardless of the parents' citizenship, this effectively skirts the non-discrim clause, but, as I said, this seems to have been ignored by IRS.

As to all your other questions, don't worry.

And yes, the note to which I am referring is the one electing your spouse to be resident.

By the way, if you arefully read the sentence, it states that one won't use the treaty to declare themselves non-resident implies ".. and use this to exclude income". 2555 is not a treaty position. This is referring more to othertreaty exemptions, like student income, capital gains and the like.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Post Reply