Canadian Citizen on TN in USA

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dhirenasha
Posts: 57
Joined: Fri Nov 23, 2007 9:31 am
Location: USA

Canadian Citizen on TN in USA

Post by dhirenasha »

Reggrding the same Ihave the following queries.

(1) Emigrated from Canada to USA in July 2007 on TN. Would be filing 1040 in US.
(2) Wife was collecting Canadian Maternity benifits until Nov 2007.
(3) We were getting, Universal child, and child tax credit. (still on)
(4) We had NEVER informed Canada that we have left in July and thats why we are still getting it.


Question 1:
I realize that we would be refunding everything after jul 2007 including UCB,maternity benifits, child tax credit. Am I Correct? Are there any fines for not reporting to Canada that u have emmigrated and still getting this benifit??

Question 2:
I had paid my full CPP and EI for around $1910 and $730 by the end of july in Canada. Becos I have emigrated in July 2007 does that mean that I would be getting something back after I file 2007 taxes. I m assuming both CPP and EI are prorated...


Any comments...
nelsona
Posts: 18678
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

1. mat benefits are allowed to be paid while outside canada. You will have to refund all the others.

2. Your CPP and EI were collected based on your weekly earnings. If you reached the max, it is because you earned the max by the time you left. You will not be getting any back.

had you read the emogrants guide when leaving, you would have noted how to inform govt on stopping these payments. Also, your mat leave received after leaving would be subject to FLAT tax rather than included in your 2007 tax return. you wil likely have to send a separet check to cover that.

It is so much simpler to follow the rules at the time you should.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
dhirenasha
Posts: 57
Joined: Fri Nov 23, 2007 9:31 am
Location: USA

Post by dhirenasha »

Well I could have informed CCRA that I m emmigrating if I would be knowing myself. I was thinking at that time to file taxes as Canadian and filling my world income in Canada.

It was only after I had asked a question in this forum and later became clear that I would be filling as a US resident(1040)..
nelsona
Posts: 18678
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

As I've told you at least twice, how you file in US had no bearing on your residential status in canada, once you and your spouse moved to US, you became non-resident. Period.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
dhirenasha
Posts: 57
Joined: Fri Nov 23, 2007 9:31 am
Location: USA

Post by dhirenasha »

I got confused today when I talked to IRS. AS I said before that I would be filling as a US resident.(1040) for married filling jointly for year 2007. My Canadian income was from Jan -jun 2007, and US income was from July onwards.

I would be reporting my Canadian income in US and further taking a credit out of it on my 1040.

Question:
IRS employee told me to file 1040 with a standard deduction for a full year. He says becos I m filling my foreign income over here in US, I can claim stand deduction for a full year. I think this would duplicate as I would be claiming prorated std ded in Canada from Jan to Jun 07. How can I claim std ded again in US for the same period. Shouldn't my US std ded be prorated also....

any views...
nelsona
Posts: 18678
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Filing a full year 1040 entitles you to the standard deduction, along with anything else that 'normal' US filers get on their 1040. That is one of the main reasons to file 1040 rather than 1040NR or part-year 1040. The trade-off is that you MUST report all world income

As I keep telling you, how you file in canada and how you file in US have nothing to do with each other.

The deductions you get in canada are against your Cdn taxes, and are based on Cdn rules.

The deductiions you get in US are against your US taxes and are based on US rules.

The deductions you will get on your state taxes aree based on the state's rules (although many simply take the fed rules).

It has nothing to do with income, and nothing to do woth the other tax return.

If you had lived in QC, you would be familiar with tax returns from two jurisdictions wirth each having their own rules, and what is deductible on one may or may not be deductible on the other: Each one stands on its own.

It is even more the case when crossing the border.


By the way, calling the IRS on matters involving your first-year taxes is a recipe for disaster. To prove my point, you can call back next week with the same qwuestion, and you will get a different answer.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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