us tax canadian tax

canuck1915 · Post by **canuck1915** » Fri Jul 06, 2007 9:10 pm

Ok if I m filing US tax should I report all income including welfare income from Canada which I dont owe tax to Canada on that, and what about if I m filing Canadian tax , should I report US income, the situation is I lived 1 month in Canada and 6 months in US in 2006
Im kinda confused , you said earlier I can file either as non resident or resident when I file US tax but the definition of physcial presence tells 31 days in 2007 requirement, whats the way out

nelsona · Post by **nelsona** » Sat Jul 07, 2007 3:50 pm

Sorry, but I realy don't understand your question.

canuck1915 · Post by **canuck1915** » Sat Jul 07, 2007 6:36 pm

in 2006 I stayed 1 month in Canada, I worked US most of the year, and I m still in US, I m filing taxes now for US and also Canada, should I report my US income to Canada and vice versa?

Is there any advantage of filing as non resident alien for US ? My standard deduction seems to be more than itemized ded.
Thanks alot

canuck1915 · Post by **canuck1915** » Sat Jul 07, 2007 6:37 pm

in 2006 I stayed 1 month in Canada, I worked US most of the year, and I m still in US, I m filing taxes now for US and also Canada, should I report my US income to Canada and vice versa?

Is there any advantage of filing as non resident alien for US ? My standard deduction seems to be more than itemized ded.

nelsona · Post by **nelsona** » Sun Jul 08, 2007 1:43 pm

If you were in US for almost entire year, then it probably makes sense to file as a full year resident of US. This would get you standard deduction. Filing any other way will not. For canada, You would file as a departing Cdn resident for January 2006.

You question talked of "welfare income" you got in Canada. What kind of welfare income. Most is not taxable anywhere. EI is not welfare however.

And, last time I checked, the calendar had 12 months, 1 month in canada and 6 in US equals 7. Where you you the rest of the time?

canuck1915 · Post by **canuck1915** » Mon Jul 09, 2007 5:21 pm

Well when I did standard deduction as a resident I get more refund then itemized, would it be different if I would do it as non resident, you said Canadians can file it either way
My welare is the welfare not EI , 530 $ , I guess I dont owe any tax on that, do I need to file departure? If so do I need to report US income, and when I m filing US income as non resident or resident should I report that $530 ?

I was in a 3rd country in 2006

nelsona · Post by **nelsona** » Tue Jul 10, 2007 7:17 am

"Well when I did standard deduction as a resident I get more refund then itemized, would it be different if I would do it as non resident, you said Canadians can file it either way".

You should file as a full-year 1040, reporting all world income for the year on that 1040. This is, as I have already said, is the ONLY way to get the standard deduction. You would report all your Cdn income, but welfare is not considered income in US.

This has nothing to do with how you file in Canada, which will be as a departing resident, an "Emigrant". Your welfare income is reported and then deducted, so no tax would be owed on it.

canuck1915 · Post by **canuck1915** » Thu Aug 23, 2007 11:26 pm

What if I don't file emigrant, (is that called nr 73 btw)?
as I didn't change my credit cards address, , what exactly should i do about Canada and I will file US tax and not report Canadian welfare , right ?

nelsona · Post by **nelsona** » Fri Aug 24, 2007 6:49 am

Fining as an emigrant means filing a 'regular'tax return but reportng that you left Canada on xx date on front.

I've told you what you must do with welfare payments on your Cdn return. You do not report Cdn welfare on your US return.

You should not file NR73 (which is not a return). You should look it over to make sure you are meeting 'most' of the items. Credit card is not important. You are a US resident and a Cdn non-resident.

Sat Sep 01, 2007 10:48 am

[quote="nelsona"]If you were in US for almost entire year, then it probably makes sense to file as a full year resident of US. This would get you standard deduction. Filing any other way will not. For canada, You would file as a departing Cdn resident for January 2006.

[/quote]

Note: To file as a full year US resident you must file an election to be treated as a US resident, and you must declare world income for the entire year in the U.S.

canuck1915 · Post by **canuck1915** » Sat Sep 01, 2007 11:36 am

How do I file it?

nelsona · Post by **nelsona** » Sat Sep 01, 2007 3:09 pm

Read IRS publication 519.

While Cdns are by treaty exempt from having to formally make such an election, it is wise to submit the election just so that IRS knows what is going on.

But if you file a full-year joint 1040 with your spouse, you are fine, regardless of whether you submit any notice of election.

Sun Sep 02, 2007 12:16 pm

[quote="canuck1915"]How do I file it?[/quote]

The election is in free form, and must be signed to be effective. If married, the election is pursuant to IRC 6013(g) and must be signed by both spouses.

If single, the election is pursuant to IRC 7701, and must indicate the 30 day period after entry during which you were resident in the U.S. It must also be signed to be effectove.