New user questions on Canadian tax return for first full yea

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

Post Reply
dalek
Posts: 2
Joined: Mon Apr 16, 2007 12:32 pm

New user questions on Canadian tax return for first full yea

Post by dalek »

Hi everyone. I have searched for a forum like this before to no avail, finally saw it from a post on the immigration forums by Nelsona. Thanks goodness!

I have done some searching and not totally found my answers yet, so I'll chance the questions. I have found myself to be fairly poor at understanding the tax stuff, so I apologize for this in advance.

My wife and I moved to the US in mid 2005, me on TN, her on TD. We are both now here on TN. For 2005, we filed as deemed non-resident in Canada, as we met the US substantial presence test. I had Canadian inclome while in Canada, and US income while in the US. My wife had Canadian income only, both while in Canada and in the US. For 2006, I have only US income, and we are resident for tax purposes in the US. My wife has some US income, and some Canadian income for 2006. We have some RRSPs in Canada, a Canadian credit card and a line of credit. The Canadian bacnks have our US address, but the Canadian credit card still has a Canadian address. I am in the process of filing the Canadian return(s), and have just efiled in the US

Here are my questions:

1) Given that I have no Canadian income, but my wife does, and we are resident in the US, do I need to file a Canadian return? Do I need to file anything at all in Canada, such as a letter? I had submitted my returns using quicktax last year, with the whole deemed US resident test, form 2555, etc. I don't understand what exactly everything was, but I follwed all instructions to the best of my knowledge.

2) Do I need to declare the US income on my wife's Canadian return, given that we are resident in the US? She performed the services for her Canadian employer in Canada, but she only traveled for the work (about 1 month's worth in total).

3) When I did the US returns, I filled out everything in the interview in TurboTax. It calculated a tax creidt for her Canadian income, but I don't see her Canadian income showing in the income section of the return. Is this correct? Will I need to file a 1040X later on?

4) What do I need to do with my RRSPs? I have no contributions to report, but the accounts are still open in Canada. I see there is a form I probably need to fill out, but I am fuzzy on this part.

Thanks in advance for your help, and sorry for the newbie questions. I see my tax situation is probably not as complex as most, and I admit I have lots to learn (but want to do so).

PS - this looks like a really awesome forum. Wish I had found it last year when I was filing my taxes!
Dale.
Post Reply