Bonus from previous year

jalcmt · Post by **jalcmt** » Thu Apr 08, 2010 10:01 am

I lived in the US from 2003 until halfway thru 2008 when I returned to Canada. I received a bonus in 2009 for the work that I had done in 2008. I am Canadian, married with 4 children, (1 of whom is a US citizen). What is the best way to file for the 2009 bonus?

nelsona · Post by **nelsona** » Thu Apr 08, 2010 12:13 pm

It is reportable in both US and canada. In US you file a 1040NR. If it is less than $10K, you exempt it from incom tax.

In Canada you report the income, and use any income tax, plus the FICA that was withheld as a foreign tax credit.

That is not only the best way, its the only way.

jalcmt · Post by **jalcmt** » Thu Apr 08, 2010 12:33 pm

Thanks for the response. Much appreciated. I completed my Canadian as described. I am struggling a bit with the 1040NR. It is slightly less than $10k and I am not sure how to exempt it?

jalcmt · Post by **jalcmt** » Thu Apr 08, 2010 1:22 pm

I am working my way through it. I have 3 children who have TIN numbers and one who has a SSN number. Can I only claim the one who has a SSN number because the other 3 did not live in the US last year?

nelsona · Post by **nelsona** » Fri Apr 09, 2010 9:18 am

If your wages are less than 10K, who cares if your kids are exempted or not. You owe nothing.

You report '0' wages, and then show why on page 5, and show how much on line 22.