taxation
Moderator: Mark T Serbinski CA CPA
taxation
I am a Canadian citizen who lives in the us. I have worked/lived and paid us taxes for the past 7 yrs. I am no longer legal in the us (working visa has expired) because i have accepted another job in Latvia (7 months of the yr) and earn income there. However i come back to my home in the us for the rest of the year (vactaion). I pay taxes in Latvia, and i pay us taxes on money that i am currently collecting from my previous employer (because of a buyout of the company) but i do not work for that employer anymore. My question is do i need to declare my foreign income to either Canada or the US?
Because you were resident in US in 2007 and you have not really brkoe residence in US yet, you must report all your world income on a 1040 for 2008. Even if you are in US illegally, you are still here and this resident and thus taxable on world income.
You can then take credit for any taxes that you legally paid in latvia as a credit, using form 1116. there may be other provisions in tax treaties between latvia and US, but I'm not going there.
Your taxation in Canada has not benn affected by any of this.
You can then take credit for any taxes that you legally paid in latvia as a credit, using form 1116. there may be other provisions in tax treaties between latvia and US, but I'm not going there.
Your taxation in Canada has not benn affected by any of this.
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