Return to Canada...tax and 401k questions

[mel0526]

Hi,

I got lay off and I will be moving back to Quebec before the end of the year. I will like to figure out what I will do for tax before the tax time...

1. Do I will fill a 1040 for all year of 2008? And a tax report from the date I will move back (mean date I will give my I-94 back during a trip I plan to BC or the move is official back in Quebec)?

2. What about my moving expenses? Can I deduct it in the US report and the Canada reports? I don't have a job in Canada waiting can I still deduct it in all the report? Or because I will be moving at the end of the year my stock have chance to show only in 2009 also...than I can wait for Canada in the 2009 report but for US?

3. I also have less than 1000$ in 401k, I was thinking to just take a check, what it will be for tax purpose?

Thank you for all your help.

[nelsona]

1. You will file full year in US, and then a return for canad and QC from when you re-establish residence. I would make sure I get all income before moving back.

2.

[nelsona]

2. your moving expense can only be deductible on your US return against post-move wages. Unless you work in Nov/dec you can't clim this year, and you won't file next year. Moving back to Canad is never deductible on your Cdn return unless you are a student.

3. Might as well collapse and pay tax. Too little to worry about in future. Take it befoe leaving.

[mel0526]

Thank Nelsona.

I have one more question:
I was in an accident earlier but I'm not at fault and I have injury. I will likely have a personal compensation when my injury will be fix...the problem it will not be maybe before 2009 after I move back to Canada in december 2008. How it will work for the tax report in Canada and in US?

Thank again.

[nelsona]

These are not taxable in either country.