Medicare & Social Insurance

Alwaysdream · Post by **Alwaysdream** » Sun Mar 08, 2009 4:18 pm

When file foreign income in Canada (Canadian Resident), I think I read that I can only claim the tax but no medical or social, is that true?

Also can you file as resident from "Tax point of view" in both countries USA and Canada?

nelsona · Post by **nelsona** » Sun Mar 08, 2009 6:12 pm

SS and medicare are eligible for foreign tax vcredit, by treaty.

You can file as resident in both countries. However canada takes the position that if you meet residency in another country, they will 'push' you into non-residency to get deemed disposition from you.

US will let you file 1040 if you meet presence test, SPT. ASa Cdn resident ypu can file 1040NR even if you meet SPT, by treaty.

Alwaysdream · Post by **Alwaysdream** » Sun Mar 08, 2009 6:34 pm

Thank you for this swift reply.

I just want to make sure I understand, do you mean I can put the whole deducted amount in line where it ask about foreign Tax in canadian return.

How do I know which is better from "refund point of view" 1040 or 1040NR, I do not have any income except my salary and my wife do not work and no kids.

nelsona · Post by **nelsona** » Sun Mar 08, 2009 8:54 pm

Married Cdns can file 1040NR but with calculating the taxrate on a 1040. I have explined this in detail. Look for XXV return.

nelsona · Post by **nelsona** » Sun Mar 08, 2009 8:55 pm

Your eligible tax is: you actual fed and state tax (calculated on your return) and the ss and medicare that was withheld.