Form 8880

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

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bellemoj
Posts: 7
Joined: Tue Apr 23, 2019 12:54 pm

Form 8880

Post by bellemoj »

With a lot of us on the Forum working from home (in Canada) since mid March 2020, would it be advantageous to file Form 8880 to reduce our U.S. taxes and potentially to get a bigger refund if we were contributing to a 401k for the year? We would possibly qualify since we had low US Sourced Income and still contributed to an employer sponsored 401k. If so, would we have to determine how much we contributed to our 401k from Jan-mid March or could we use the entire amount contributed over the year?
nelsona
Posts: 16947
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Form 8880

Post by nelsona »

Your software will figure this out.

Your US tax, if working on Canada will not be the problem, It ios the Cdn tax you need to worry about. making your US tax smaller only increases what you owe to Canada.

Be aware that you miust use a form in canada to be able to get credit for your 401(k) contributions (only the 2020 calendar year contributions count for 2020)
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
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