A Canadian in America

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.

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yurt_man
Posts: 2
Joined: Mon Apr 04, 2005 11:23 pm

A Canadian in America

Post by yurt_man »

Hi all,
Just wanted to check something.

I am a Canadian working in the US on a TN visa since last June. All of my income has been from a US source. So, I plan to fill my US tax form as normal, then fill out a T1 and use the foreign tax credit to offset the US taxes.

Also, I've read that I must declare my 401(k) contribution as income on the T1. Does this sound right?

Appreciate any feedback.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">So, I plan to fill my US tax form as normal<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

If you only arrived in US in 2004, you can't report 'as normal, as you were not resident all year. See IRS Pub 519.

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">then fill out a T1 and use the foreign tax credit to offset the US taxes.<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Only if you continue to live in Canada. Otherwise, you have departed Canada and should indicate so on your return, and NOT report any US income after dep. date.

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">declare my 401(k) contribution as income on the T1<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

If you must report in Canad, then, yes, 401(k) contribs must be added to your wages.



<i>nelsona non grata... and non pro</i>
yurt_man
Posts: 2
Joined: Mon Apr 04, 2005 11:23 pm

Post by yurt_man »

nelsona,
thanks for your responses.

Just to clarify: I arrived in June of last year, so I have spent well over 183 days in the U.S., and I seem to pass the substantial presence test. Please correct me if I am wrong.

As for departing Canada, I still have bank accounts and an RRSP in Canada, but no property. Does this still count as having departed Canada? Could you point me where I could get more information?

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

Post by nelsona »

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">I arrived in June of last year, so I have spent well over 183 days in the U.S., and I seem to pass the substantial presence test<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Yes, so that only makes you a 'dual-status' alien for 2004. If you read about SPT, read on about how to file in 1st year.

It's not normal, by any stretch.

2005 will be normal.

Without house and/or spouse in Canada, you are no longer resident.

See the "emigrants" guide from CRA on how to file in 2004.



<i>nelsona non grata... and non pro</i>
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