Hi all,
I am a TD visa holder, first year to report tax in US, first year for my husband (TN visa) too. He has a SSN. I wonder if I need to apply for ITIN BEFORE filing US tax return. I suppose we can and should file jointly, for our best interest. I collapsed my RRSP (spousal RRSP in my name) last year and paid 25% withholding tax. To get this as a credit in my US return, do I need a ITIN?
Thank you.
Individual Tax Identification Number (ITIN)
Moderator: Mark T Serbinski CA CPA
You get ITIN when you file your joint return and submit W-7. THEN you will get ITIN. You don't get one before filing.
Since only a little of your RRSP will be taxable in US, you will most likely be using the 25% tax as deduction on schedule A.
And if you did not work in 2007, you may be able to reduce the Cdn tax by using a 217 election return for Canada.
Since only a little of your RRSP will be taxable in US, you will most likely be using the 25% tax as deduction on schedule A.
And if you did not work in 2007, you may be able to reduce the Cdn tax by using a 217 election return for Canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Emigrant tax
Hi nelson,
Thanks a lot for your help. Couple of questions when filing ufile:
1. I read in this forum, when asked residence on Dec. 31. put Cdn province anyway. I played with Ontario (my case) or non-resident and found the difference (in ufile, there is a seperate section to put departure date as an emigrant). If put non-resident, we pay more federal tax, no provincial tax. If ontario, less Federal tax but have provincial tax. The end result is a little bit more refund as a non-resident, no other impact on our return. The number is one thing, to do it right is another. Shall we put Ontario or non-resident?
2. Both the section in ufile and the guide for 217 say "non-resident for all 2007 can file 217". I left Canada in May. Do i qualify? I paid 25% tax on RRSP full withdrawal. If I do, do I file 217 together with my regular return?
3. Last but not least, if getting a refund, shall we ask for direct deposit to Cdn bank or U.S. bank or a cheque?
thank you.
Thanks a lot for your help. Couple of questions when filing ufile:
1. I read in this forum, when asked residence on Dec. 31. put Cdn province anyway. I played with Ontario (my case) or non-resident and found the difference (in ufile, there is a seperate section to put departure date as an emigrant). If put non-resident, we pay more federal tax, no provincial tax. If ontario, less Federal tax but have provincial tax. The end result is a little bit more refund as a non-resident, no other impact on our return. The number is one thing, to do it right is another. Shall we put Ontario or non-resident?
2. Both the section in ufile and the guide for 217 say "non-resident for all 2007 can file 217". I left Canada in May. Do i qualify? I paid 25% tax on RRSP full withdrawal. If I do, do I file 217 together with my regular return?
3. Last but not least, if getting a refund, shall we ask for direct deposit to Cdn bank or U.S. bank or a cheque?
thank you.
You are a departing resident for 2007. You put ontario and thedate you left.
Your 217 return is a little less straightforward the year you leave Canada that other times. there are some special calculations that need to be done.
Your 217 return is a little less straightforward the year you leave Canada that other times. there are some special calculations that need to be done.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Hi Nelson, thanks again. I don't see how my departure date affect the calculation. It seems like ufile treated Cdn income before we left as full year income. We are still getting some credits (federal. provincial etc. ) maybe it is not full year but prorated. How can we tell?
Also there is a section stating "if cdn source income represent 90% of worldwide income after departure, we can claim full credits, otherwise, ufile will prorate the credits." There is nowhere for me to put my RRSP withdraw as income. So in my case will be all zeros both inside and outside of Canada. shall I skip it? On the other hand, for my husband, he does have us income after departure, but we are not supposed to report it to CRA. Right? shall I skip for him too? If I skip, the program will prorate the credits.
thank you for your reply.
Also there is a section stating "if cdn source income represent 90% of worldwide income after departure, we can claim full credits, otherwise, ufile will prorate the credits." There is nowhere for me to put my RRSP withdraw as income. So in my case will be all zeros both inside and outside of Canada. shall I skip it? On the other hand, for my husband, he does have us income after departure, but we are not supposed to report it to CRA. Right? shall I skip for him too? If I skip, the program will prorate the credits.
thank you for your reply.
Regina
BTW, how can i access the 217 section in ufile? There are a few options:
1. immigrated to ca in 2007
2. emigrated from ca in 2007
3. non-resident for all 2007 and file 217
4. non-resident for all 2007 and file 216
I chose option 2, but has no access to 217. Shall I choose 3 even I left ca in may 2007? or shall I find 217 on CRA website and file manually? Please advise. Thank you.
1. immigrated to ca in 2007
2. emigrated from ca in 2007
3. non-resident for all 2007 and file 217
4. non-resident for all 2007 and file 216
I chose option 2, but has no access to 217. Shall I choose 3 even I left ca in may 2007? or shall I find 217 on CRA website and file manually? Please advise. Thank you.
Regina
You BOTH need to attach a note listing your Cdn income and non-Cdn income from after you were non-resident.
This will determine whether full personal ammount will be allowed, and in your case for 217, determine whether your fed deductions will be limited.
My guess is that your husband will be limited, but you won't.
In non-resident years (as opposed to departure years) you would have fed surtax instead of provincial tax. Because you took the RRSP during your departure year, you owe provincial tax.
But the key is the statement you will add listing all your income from Cdn and foreign sources. You do not put the foreign source income on your actual return, nor do you put any Cdn income that was subject to NR tax (interst, dividends), but you dorepirt your RRSP income.
To determine if the 217 is a benefit, just remove the RRSP income form the return. If the tax difference is more than the 25% tax you paid, then back out of the 217 and just accept the 15% as final.
This will determine whether full personal ammount will be allowed, and in your case for 217, determine whether your fed deductions will be limited.
My guess is that your husband will be limited, but you won't.
In non-resident years (as opposed to departure years) you would have fed surtax instead of provincial tax. Because you took the RRSP during your departure year, you owe provincial tax.
But the key is the statement you will add listing all your income from Cdn and foreign sources. You do not put the foreign source income on your actual return, nor do you put any Cdn income that was subject to NR tax (interst, dividends), but you dorepirt your RRSP income.
To determine if the 217 is a benefit, just remove the RRSP income form the return. If the tax difference is more than the 25% tax you paid, then back out of the 217 and just accept the 15% as final.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Hi Nelson, I still can't access 217 section in ufile. The system does not allow me to choose these two options: "emigrate from canada in 2007" which allows me to put my departure date and "non-resident for all 2007 and file 217" which allows me to access 217 section. Any advise? Do i need to file manually for 217?
Regina
You aren't strictly filing a 217 return. That is for non-residents. You are making a 217 election in your departure year. the differences I have already described. Please read the emigrants guide on this.
You won't be efiling at any rate, since you can't e-file a departure or a non-residnt return, so you will WRITE (with a pen) section 217 on top of your return that you print out.
You won't be efiling at any rate, since you can't e-file a departure or a non-residnt return, so you will WRITE (with a pen) section 217 on top of your return that you print out.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
" to determine if the 217 is a benefit, just remove the RRSP income form the return. If the tax difference is more than the 25% tax you paid, then back out of the 217 and just accept the 15% as final."
Hi, Nelson, still don't understand this. In my case, the difference is definately less than 25%. withdraw $70,000, paid $17,500 tax, but the difference between putting and not puting RRSP is about $1800.00... an uncertainty is that CRA will most likely adjust this figure, because as you said my husband most likely will not get full credits.
My understanding is that I only pay for one scenario, either 25% tax or claim as income and if claim as income costs me less, I should claim it. If this is right, how much can I get back from the $17,500?
Thank you.
Hi, Nelson, still don't understand this. In my case, the difference is definately less than 25%. withdraw $70,000, paid $17,500 tax, but the difference between putting and not puting RRSP is about $1800.00... an uncertainty is that CRA will most likely adjust this figure, because as you said my husband most likely will not get full credits.
My understanding is that I only pay for one scenario, either 25% tax or claim as income and if claim as income costs me less, I should claim it. If this is right, how much can I get back from the $17,500?
Thank you.
Regina