I am Canadian TN holder in US and start to work in US from Jan 2005. My wife was in Canada (no income) till OCT. which we moved to US completly.
We don't have any income in Canada, no property, no assets, canceled OHIP already.
But I still keep my term life insurance, Canadian drivers licence, canadian cell phone and checking bank account.
Do I have enough ties to Canada that makes me pay tax for year 2005 to Canada? (I have the form NR-73 and try to fill it up).
In case I have to file canadian tax, can I do that in US or I have to do it in Canada?
and how revenue Canada will know that I am working in US?!!! can I hide it?
Thanks
TN- Canada TAX
Moderator: Mark T Serbinski CA CPA
Use NR73 as a guide; do not submit it.
Your wife living in Canada made you taxable there until she left, so yes, you do owe for 2005 up to October.
The other ties were not important.
Up until your departure date (oct 2005) you are legally required to report ALL world income on your tax return. You do have the ability to use foreign tax credits to lessen the Cdn/Prov tax.
In any event, both of you should file a tax return for 2005 (next spring) to inform CRA that you have left canada on Oct xx, 2005 (it goes on page 1) and to comply with any 'departure tax' provisions that apply to you. See the Emigrants guide from CRA.
Last time I checked, Canada still recieves mail from all over the world, so you do not need to be in Canada to file your Cdn tax forms.[:D]
<i>nelsona non grata... and non pro</i>
Your wife living in Canada made you taxable there until she left, so yes, you do owe for 2005 up to October.
The other ties were not important.
Up until your departure date (oct 2005) you are legally required to report ALL world income on your tax return. You do have the ability to use foreign tax credits to lessen the Cdn/Prov tax.
In any event, both of you should file a tax return for 2005 (next spring) to inform CRA that you have left canada on Oct xx, 2005 (it goes on page 1) and to comply with any 'departure tax' provisions that apply to you. See the Emigrants guide from CRA.
Last time I checked, Canada still recieves mail from all over the world, so you do not need to be in Canada to file your Cdn tax forms.[:D]
<i>nelsona non grata... and non pro</i>
Thanks Nelsona,
When I was talking to CRA on the phone b4 leaving Canada, they told me
"you should send NR73 to us, and we will let you know if you have to file tax in Canada or not,
For year 2006, send another one, the first time that you should not file taxes, dont sent NR73 anymore till your status changed".
BTW, do you know any company to help me filing Cdn and American tax?
When I started work in US, Nov 1 2004, my SSN was delayed for 5 months, so I was not paid in yr 2004 at all. Can I file for 2004 as well and get the credit back from IRS?
Thanks
When I was talking to CRA on the phone b4 leaving Canada, they told me
"you should send NR73 to us, and we will let you know if you have to file tax in Canada or not,
For year 2006, send another one, the first time that you should not file taxes, dont sent NR73 anymore till your status changed".
BTW, do you know any company to help me filing Cdn and American tax?
When I started work in US, Nov 1 2004, my SSN was delayed for 5 months, so I was not paid in yr 2004 at all. Can I file for 2004 as well and get the credit back from IRS?
Thanks
You should not have asked CRA if you should send it, they will always say yes, but it is not required.
Now that they have asked for it, you likley must send it.
As to you Cdn tax, you will firstcalculate them as if you paid no US tax (you always report any income converted to Cdn dollar), and then you will do foreign tax credit calculations for both Feds and Province.
The result is roughly that your total tax will be roughly the same as igf you had worked in Canada.
The US tax that you will be allowed to use is the final US fed tax, State tax as swell as SS/FICA/Medicare tax that you pay. You will submit your 1040 and w-2 as proof.
<i>nelsona non grata... and non pro</i>
Now that they have asked for it, you likley must send it.
As to you Cdn tax, you will firstcalculate them as if you paid no US tax (you always report any income converted to Cdn dollar), and then you will do foreign tax credit calculations for both Feds and Province.
The result is roughly that your total tax will be roughly the same as igf you had worked in Canada.
The US tax that you will be allowed to use is the final US fed tax, State tax as swell as SS/FICA/Medicare tax that you pay. You will submit your 1040 and w-2 as proof.
<i>nelsona non grata... and non pro</i>
In the first year of your residency in the States, your taxes (both Cdn and US) will be quite complicated. This is a great forum to help you do the returns by yourself, but it you want paid help, contact the host of this forum. As for OHIP - it really seems that officials don't know their own rules. It is five years.
Thx Pamela, I am very bad with accounting stuff but I will try.
I undrestood that I can claim my moving expenses and get some credit back from IRS.
I don't have invoices, I did everything on line, but my credit card bill shows all of them, U-haul and movers, Gas stattions. Is this enough evidance for IRS?
Or basically do I have to attache anything to my tax filing papers (I am not sure if on line tax filing would be allowed for me as the first year)
I undrestood that I can claim my moving expenses and get some credit back from IRS.
I don't have invoices, I did everything on line, but my credit card bill shows all of them, U-haul and movers, Gas stattions. Is this enough evidance for IRS?
Or basically do I have to attache anything to my tax filing papers (I am not sure if on line tax filing would be allowed for me as the first year)
Most cross-vorder specialists agre that giving them the form allows them to make a decision that may not be in your favour despite it being clear by your intentions that you are non-resident.
And even if they do decide you are non-resident, they tell you they can reverse this decision at any time.
The correct way of making known your deperture is by filing your return, next spring, wit ha departure date of Oct, reporting all world income beforethen and only Cdn income after, as outlined in the Emigrants guide.
<i>nelsona non grata... and non pro</i>
And even if they do decide you are non-resident, they tell you they can reverse this decision at any time.
The correct way of making known your deperture is by filing your return, next spring, wit ha departure date of Oct, reporting all world income beforethen and only Cdn income after, as outlined in the Emigrants guide.
<i>nelsona non grata... and non pro</i>
If anybodu knows ...
As a TN Holder in US, can I file my first US tax electronicly ? Or it should be hard copy?
I want to claim moving expenses to IRS, do I need invoices form movers? credit card monthly bill is ok?
Can I file taxes for more than a year? like since last november? I could not file tax last year since I've got my SSN 6 months later?
I used to use CRA tax web applications which was very easy and paper free, do I still be able to use the same system filing cnd tax for my new situation?
Thx
As a TN Holder in US, can I file my first US tax electronicly ? Or it should be hard copy?
I want to claim moving expenses to IRS, do I need invoices form movers? credit card monthly bill is ok?
Can I file taxes for more than a year? like since last november? I could not file tax last year since I've got my SSN 6 months later?
I used to use CRA tax web applications which was very easy and paper free, do I still be able to use the same system filing cnd tax for my new situation?
Thx
You do know tha tyou can edit your posts if you forget something, rather than adding a new one[?]
You will need to file a paper return if this is your frst one, one of the checks is on last years info. Next year you should be fine to use e-file, even with RRSP form, which you will have to send in later.
If you haven't filed your 2004 return, you are quite late and better hope that you don't owe money -- but I thoufght you said you moved in January??
Whether or not you file on paper, ther e are very few receipts that are sent along to IRS, unlike Canada. the more accurate and complete your personal records are of course, the less you would sweat an audit.
The order you file doesn't matter.
<i>nelsona non grata... and non pro</i>
You will need to file a paper return if this is your frst one, one of the checks is on last years info. Next year you should be fine to use e-file, even with RRSP form, which you will have to send in later.
If you haven't filed your 2004 return, you are quite late and better hope that you don't owe money -- but I thoufght you said you moved in January??
Whether or not you file on paper, ther e are very few receipts that are sent along to IRS, unlike Canada. the more accurate and complete your personal records are of course, the less you would sweat an audit.
The order you file doesn't matter.
<i>nelsona non grata... and non pro</i>
Thx,
No I didn't know that I can edit my notes.
My situation is a little bit different,
1- I've started on Nov. 2004 in US with TN
2- Got my SSN (thx to fast, acurate and new homeland security procedure), on May 2005 - So there was no option to file taxes
and I've got 2 SSN cards at the end with the same number of course !!!!!!
3- Cuz no SSN so no pay from company, since our HR was thinking it was my fault that SSN is so late !!!!!
4- again, no SSN and no payment then I end up to no file tax for 2004!!!
5- What happened I got my salary of 2004 in 2005, which now I will be in higher tax bracket so I will pay more taxes.
6- My wife does not have SSn and she is not eligible toi get one. As a family how do I have to file our taxes? Does she need a TIN?
What I want, is to get back the Nov and Dec tax credit since I was not paid.
thansk
No I didn't know that I can edit my notes.
My situation is a little bit different,
1- I've started on Nov. 2004 in US with TN
2- Got my SSN (thx to fast, acurate and new homeland security procedure), on May 2005 - So there was no option to file taxes
and I've got 2 SSN cards at the end with the same number of course !!!!!!
3- Cuz no SSN so no pay from company, since our HR was thinking it was my fault that SSN is so late !!!!!
4- again, no SSN and no payment then I end up to no file tax for 2004!!!
5- What happened I got my salary of 2004 in 2005, which now I will be in higher tax bracket so I will pay more taxes.
6- My wife does not have SSn and she is not eligible toi get one. As a family how do I have to file our taxes? Does she need a TIN?
What I want, is to get back the Nov and Dec tax credit since I was not paid.
thansk
If you want to have a portion of your income to be for 2004, then you will have to get your company to issue you a W-2 to that end, and I'm not sure that tehy can really, since they didn't pay you in 2004.
In any event, I doubt they will do this, and it may not be to your advantage anyways, since (a) you will be late in paying your 2004 US taxes, since none was withheld for 2004, you will be penalized, (b) your would also be responsible for the SS/Medicare tax that was not withheld for 2004, and (c) will also have to add this back to your Cdn tax return for 2004, probably subject that completed return to further scrutiny, taxes, and interest.
Your company should have been paying you from day one anyways, so the fact that they didn't co-operate with you back then, likely means that they won't co-operate now either.
Just move on. Accept this income as being in 2005; it will not mean paying anymore taxes.
Your wife will be issued an ITIN when you submit your 2005 tax return along with W-7 request.
I am unclear what you mean by the Nov dec tax credit, but, in any event I wouldn't worry about it.
<i>nelsona non grata... and non pro</i>
In any event, I doubt they will do this, and it may not be to your advantage anyways, since (a) you will be late in paying your 2004 US taxes, since none was withheld for 2004, you will be penalized, (b) your would also be responsible for the SS/Medicare tax that was not withheld for 2004, and (c) will also have to add this back to your Cdn tax return for 2004, probably subject that completed return to further scrutiny, taxes, and interest.
Your company should have been paying you from day one anyways, so the fact that they didn't co-operate with you back then, likely means that they won't co-operate now either.
Just move on. Accept this income as being in 2005; it will not mean paying anymore taxes.
Your wife will be issued an ITIN when you submit your 2005 tax return along with W-7 request.
I am unclear what you mean by the Nov dec tax credit, but, in any event I wouldn't worry about it.
<i>nelsona non grata... and non pro</i>
I think thats the best way, thanks
Who will issue ITIN for my wife, and what is the sequence?
is the sequence like this?
1- I file tax as single
2- submit to IRS
3- get my tax return paper with my wife ITIN on it?
I think I missed something, I am a little bit slow on Tax and Accounting [:(]
General Question:
I was traveling back to Canada every week (to my home), can I deduct this from US tax or Canadian tax?
Who will issue ITIN for my wife, and what is the sequence?
is the sequence like this?
1- I file tax as single
2- submit to IRS
3- get my tax return paper with my wife ITIN on it?
I think I missed something, I am a little bit slow on Tax and Accounting [:(]
General Question:
I was traveling back to Canada every week (to my home), can I deduct this from US tax or Canadian tax?