Alright, i have been an American citizen living in Canada for the past 7 years as a Permanent resident. I just had a baby in August. She isn't a US citizen yet because we just got all of her Canadian and Quebec paperwork. Usually when i file my US taxes, i use and 2555 form. If i use this form, do i get the $1000 tax credit for my child? If not, what do i have to do to get it.
Thanks
Easy tax question regarding new baby and US taxes
Moderator: Mark T Serbinski CA CPA
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MIKE2000Z28
- Posts: 66
- Joined: Wed Jan 16, 2008 11:49 am
- Location: Quebec, Canada
Putting the issues of SSN etc aside,
Typically unless you DON"T exclude your wages, you won't get the credit.
Technically, if you include your wages and then take forign tax credit instead, even if you owe no taxes, you become eligible for the "additional child tax credit".
Note that you may be giving up the right to use 2555 once you go to 1116 (there is a limit on the time between switching from one to the other, but you are going to have this child a long time, so going FTC for everything will get your $1000 per year.
Typically unless you DON"T exclude your wages, you won't get the credit.
Technically, if you include your wages and then take forign tax credit instead, even if you owe no taxes, you become eligible for the "additional child tax credit".
Note that you may be giving up the right to use 2555 once you go to 1116 (there is a limit on the time between switching from one to the other, but you are going to have this child a long time, so going FTC for everything will get your $1000 per year.
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
New Cdn Baby and US Taxes
Mike - just because you have not filled out the Foreign Birth Abroad form at the US Consulate does not mean that she is not yet an US Citizen. She is. My wife and I learned all about this after the birth of our child last year in Ontario.
As a US Citizen your US Citizenship passes to your children automatically as long as you had lived in the US for a period of time (I believe it's 5 years) before their birth. All the FBA form does is get her into the 'system' in regards to SSN, passport, etc...
What this means in the short term is that you now have an additional expense of filing 3520's if you open an RESP and if you don't get her a SSN and US Passport there is the chance that a shape Customs agent might deny her entry on the next family visit back to the states - as US Citizens are required to enter using US Passport.
As a US Citizen your US Citizenship passes to your children automatically as long as you had lived in the US for a period of time (I believe it's 5 years) before their birth. All the FBA form does is get her into the 'system' in regards to SSN, passport, etc...
What this means in the short term is that you now have an additional expense of filing 3520's if you open an RESP and if you don't get her a SSN and US Passport there is the chance that a shape Customs agent might deny her entry on the next family visit back to the states - as US Citizens are required to enter using US Passport.
A little drastic there mike.
First off, Mike IS a US citizen, so he would have to file 3520 on RESP regardless of the citizenship of his child (wo is USC as you say).
Second, under-16s don't require passport to cross border. There is much leeway on infants.
Mike should proceed to get child's Cdn and US passport, but it is not as critical as you portray.
First off, Mike IS a US citizen, so he would have to file 3520 on RESP regardless of the citizenship of his child (wo is USC as you say).
Second, under-16s don't require passport to cross border. There is much leeway on infants.
Mike should proceed to get child's Cdn and US passport, but it is not as critical as you portray.
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
I realize this is moving away from tax issues, but is there any reason to get a Canadian passport for the kids if they are US born and now living in Canada? In my case we have US passports for the kids (used for all border crossings) and Canadian Citizenship cards, but no Canadian passport. My wife and I are Canadian (only).
We live in US and my US-born son has a Cdn passport, but we have never used it.
The only reason that I would imagine for US-born Cdn to have a Cdn passport is if they live in canada (so would need quick evidence that they have right to live in canada).
But, if you say you have not had any problem with this, then, other than to go to Cuba, I don't see any need to have Cdn passport.
The only reason that I would imagine for US-born Cdn to have a Cdn passport is if they live in canada (so would need quick evidence that they have right to live in canada).
But, if you say you have not had any problem with this, then, other than to go to Cuba, I don't see any need to have Cdn passport.
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
2 comments:
Cuba: This page from the US State Department (http://travel.state.gov/travel/cis_pa_t ... _1097.html) indicates even with Canadian passports our kids cannot go to Cuba without incurring some risk.
eortlund: We used the kids Cdn Citizenship cards to cross the border only once, when we permanently moved back to Canada. At that time the folks at the border said it saved them some paperwork. The rest of the time we do not bother with them.
Cuba: This page from the US State Department (http://travel.state.gov/travel/cis_pa_t ... _1097.html) indicates even with Canadian passports our kids cannot go to Cuba without incurring some risk.
eortlund: We used the kids Cdn Citizenship cards to cross the border only once, when we permanently moved back to Canada. At that time the folks at the border said it saved them some paperwork. The rest of the time we do not bother with them.
Note that I was referring to Cdn residents, not US residents.
If you are not US citizens, AND you and your US-born kids live in canada, you should have no qualms about all going to cuba.
If you are not US citizens, AND you and your US-born kids live in canada, you should have no qualms about all going to cuba.
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
Well, surely, my husband and I need to show something other than just US passports when returning to Canada? Right now we show US passports and Canadian permanent residency cards. Once we have citizenship, I assume we can show US passport plus Canadian citizenship card? If we didn't show proof of citizenship, they might just think we're Americans going on a short vacation to Canada.
"CBSA confirmed to me that Canadian citizens need to show CDN passport when entering Canada"
That particular officer did. None of the 15 or so that we have crossed with ever stopped my CHILD with his US passport. Rememebr, we are taliking CHILDREN here and CHILD not living in canada.
Let's not misapply various situtaions.
That particular officer did. None of the 15 or so that we have crossed with ever stopped my CHILD with his US passport. Rememebr, we are taliking CHILDREN here and CHILD not living in canada.
Let's not misapply various situtaions.
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