In about 1 month I'll move to US with a K1 visa and marry. For 2005 tax year it is possible to have income only from Canadian sources (roughly 9 months of salary and, if approved, 3 months of EI). Since I'll be less than 6 months in US I have the option to file US taxes as a non-resident. In this case can I file jointly with my then husband? If yes, on the US taxes I'll show only the income I received after marriage (EI, if approved)?
Thank you!
US NR filing jointly
Moderator: Mark T Serbinski CA CPA
The only way you and spouse can file jointly is if you BOTH declare all world income for 2005 on a 1040, including your pre-arrival income. You wil be enetilted to exempt your Cdn wages by form 2555.
Any other method, forces your spouse to file married filing separately, making his taxes much more.
By the way, you won't be entitled to EI if you leave Canada, unless its for maternity leave.
<i>nelsona non grata... and non pro</i>
Any other method, forces your spouse to file married filing separately, making his taxes much more.
By the way, you won't be entitled to EI if you leave Canada, unless its for maternity leave.
<i>nelsona non grata... and non pro</i>
Nelson, thank you very much for answering! Now that I learned I have to report in US my world (Canadian) income for the whole year 2005 I need further clarification, please help.
My son will start college in Canada this September. My intention is to claim "Federal Tuition and Education Amounts" for him on my Canadian taxes. What about the other expenses that I will also cover in Canada (they will be in my son's name though - rent, utilities, food etc.), can I claim them on the US tax (spouses with dependents filing jointly, form 1040)? I understand that in order to do this my son must obtain an ITIN by sending me form W-7 and proper proof of I.D., and further I'll send them along with federal income tax return (since I'm the one filing the US taxes, not him), is my understanding right? (source: http://www.irs.gov/individuals/article/ ... 87,00.html ) Or how is it better to deal with those tuition fees, education and living expenses on Canadian and US taxes?
To lower the Canadian taxes (and get a bigger refund) I would also claim RRSP contribution for 2005, since I'm in the middle tax-bracket that is still higher than 25% that I'll pay when I'll decide to transfer the RRSP money in US, later on (I didn't make the contribution for 2005 yet, this is only my intention). What do you think?
Am I qualified to claim moving expenses (on the Canadian taxes) if I'll find a job quickly enough? If yes, what are the implications on the US taxes?
I apologize for the longer post and maybe not very interesting for some, but I will appreciate any input. Thank you again!
My son will start college in Canada this September. My intention is to claim "Federal Tuition and Education Amounts" for him on my Canadian taxes. What about the other expenses that I will also cover in Canada (they will be in my son's name though - rent, utilities, food etc.), can I claim them on the US tax (spouses with dependents filing jointly, form 1040)? I understand that in order to do this my son must obtain an ITIN by sending me form W-7 and proper proof of I.D., and further I'll send them along with federal income tax return (since I'm the one filing the US taxes, not him), is my understanding right? (source: http://www.irs.gov/individuals/article/ ... 87,00.html ) Or how is it better to deal with those tuition fees, education and living expenses on Canadian and US taxes?
To lower the Canadian taxes (and get a bigger refund) I would also claim RRSP contribution for 2005, since I'm in the middle tax-bracket that is still higher than 25% that I'll pay when I'll decide to transfer the RRSP money in US, later on (I didn't make the contribution for 2005 yet, this is only my intention). What do you think?
Am I qualified to claim moving expenses (on the Canadian taxes) if I'll find a job quickly enough? If yes, what are the implications on the US taxes?
I apologize for the longer post and maybe not very interesting for some, but I will appreciate any input. Thank you again!
You can claim tuition expenses according to the rules on each tax return. usinf the expenses on your Cdn return does not disqualify you from using it on your US return. This applies to all deductions and credits, if they are available in both countries.
You will not be able to claim moving expenses on your Cdn return, as you are leaving canada, but you probably can on your US return, if you file jointly, and if you get a job in US.
It is a good idea to put as much into your RRSP as possible in your last Cdn year, as indeed it usually does provide a bigger bang than the tax you will later pay.
<i>nelsona non grata... and non pro</i>
You will not be able to claim moving expenses on your Cdn return, as you are leaving canada, but you probably can on your US return, if you file jointly, and if you get a job in US.
It is a good idea to put as much into your RRSP as possible in your last Cdn year, as indeed it usually does provide a bigger bang than the tax you will later pay.
<i>nelsona non grata... and non pro</i>
Just for the record one CAN collect EI in the USA. http://www.hrsdc.gc.ca/asp/gateway.asp? ... =aed#6_4_1
Moving to be with a spouse is an acceptable reason. Cheers
Moving to be with a spouse is an acceptable reason. Cheers
Be careful
The posting you describe is outlining 'just cause' for being entitled to EI. It merely is the first step and is for for Cdn residents.
All these reasons are is a justification for leaving one's job, not a guarantee of getting paid.
Also, the specific clause you mention states that one ALREADY in a relationship, moving with that spouse who is also moving.
Additionally, in any cross-border EI/UI case, the person must be able to legally work in the jurisdiction one moves to, which is usually not the case when a spouse accompanies to the US (like on H1 or TN).
In this case however, our poster may be quickly getting an EAD to work. At that point they *might* be entitled to State UI
But simply moving to US, just because (a) spouse moves there, or (b) spouse is alrady living there, is not covered by these
<i>nelsona non grata... and non pro</i>
The posting you describe is outlining 'just cause' for being entitled to EI. It merely is the first step and is for for Cdn residents.
All these reasons are is a justification for leaving one's job, not a guarantee of getting paid.
Also, the specific clause you mention states that one ALREADY in a relationship, moving with that spouse who is also moving.
Additionally, in any cross-border EI/UI case, the person must be able to legally work in the jurisdiction one moves to, which is usually not the case when a spouse accompanies to the US (like on H1 or TN).
In this case however, our poster may be quickly getting an EAD to work. At that point they *might* be entitled to State UI
But simply moving to US, just because (a) spouse moves there, or (b) spouse is alrady living there, is not covered by these
<i>nelsona non grata... and non pro</i>
That is correct, a K1 must have an EAD prior to working, and thus getting Cdn EI. Have a friend that is a Canadian, she is on a CR-1 visa, thus able to work right away. She quit her job in Canada to move to the USA to be with her American Husband. She is collecting Cdn EI. From what she tells me, was a very easy process. Cheers
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote"><i>Originally posted by nelsona</i>
You can claim tuition expenses according to the rules on each tax return. usinf the expenses on your Cdn return does not disqualify you from using it on your US return. This applies to all deductions and credits, if they are available in both countries.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Just to make sure I'm getting it right about the tuition fee for my son's college (they ask for it in 2 tiers):
- tier 1 in July 2005 (so before my departure date): C$1500 will be claimed twice (on Canadian and US return, by the way at what exchange rate?)
- tier 2 sometime in Dec. 2005 (so after marriage): C$1600 will be claimed once (only on US return, since at that date I will not be in Canada anymore)
And another quick question: I can claim on US tax return up to US$11000/year gift offered to my son (that he will use to pay for rent, utilities etc. in Canada), but is this amount going to be reported as income for him and he will have to pay taxes on it to CRA?
Thank you!
P.S.- Thank you also both of you, Nelson and Flames, for input and clarification on EI issue.
You can claim tuition expenses according to the rules on each tax return. usinf the expenses on your Cdn return does not disqualify you from using it on your US return. This applies to all deductions and credits, if they are available in both countries.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Just to make sure I'm getting it right about the tuition fee for my son's college (they ask for it in 2 tiers):
- tier 1 in July 2005 (so before my departure date): C$1500 will be claimed twice (on Canadian and US return, by the way at what exchange rate?)
- tier 2 sometime in Dec. 2005 (so after marriage): C$1600 will be claimed once (only on US return, since at that date I will not be in Canada anymore)
And another quick question: I can claim on US tax return up to US$11000/year gift offered to my son (that he will use to pay for rent, utilities etc. in Canada), but is this amount going to be reported as income for him and he will have to pay taxes on it to CRA?
Thank you!
P.S.- Thank you also both of you, Nelson and Flames, for input and clarification on EI issue.
You will claim <b>all </b> deductions and credits for the YEAR, before or after your departure, on both returns.
You should be familiarizing yourself with the "Emigrants" guide from CRA, as this will assist you in doing your departure return next spring. Some credits will be excluded if you make money outside canada after you leave canada (EI is still Cdn sourced).
Canada doesan't care about gifts, except to the extent that the money generates income. Since you are bcoming non-resident, any attribution rules do not apply. It is a non-event for you in Canada.
Remember that if tou do collect Cdn EI while in US, HRDC should be withholding flat 25% tax.
<i>nelsona non grata... and non pro</i>
You should be familiarizing yourself with the "Emigrants" guide from CRA, as this will assist you in doing your departure return next spring. Some credits will be excluded if you make money outside canada after you leave canada (EI is still Cdn sourced).
Canada doesan't care about gifts, except to the extent that the money generates income. Since you are bcoming non-resident, any attribution rules do not apply. It is a non-event for you in Canada.
Remember that if tou do collect Cdn EI while in US, HRDC should be withholding flat 25% tax.
<i>nelsona non grata... and non pro</i>