Social Securit withheld - How can I get it back?

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expat1000
Posts: 11
Joined: Sat Apr 12, 2008 10:58 pm

Social Securit withheld - How can I get it back?

Post by expat1000 »

Nelsona,
Resident of Canada and US citizen for the entire 2007 (1st year filing out of the US), I continued to work for a US company (here in Canada, without commuting tot he US). US company continued to withhold, Fed/State/FICA. They have not got around to updating their payroll info.

1. I should not be paying Fed and State taxes, but what about FICA, as a non-resdent of the US and I worked in Canada, do I pay FICA to the US?

2. I have read threads here which show that FICA paid can only be used as a foreign tax credit on the CanadiaIn tax return (this year, my CDN tax is negligible, so I carryforward).s this right

And Nelsona, thank you for clear and precise responses.
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

1. Your company is paying and withholding you incorrectly. THEY need to fix this. they should be withholding you as a Cdn resident. Period. UI and CPP not FICA.

2. There is no carryforwrd on the Cdn tax return for foreign taxes.
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
expat1000
Posts: 11
Joined: Sat Apr 12, 2008 10:58 pm

Post by expat1000 »

Thank you for your repsonse.
I have paid FICA for 2007 incorrectly. Can I get that back from the IRS, or do I take FICA withheld, as foreign taxes paid on my Canadian tax return?
Thank you
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

1. I would be asking for it back for the following reason:

CRA is proabably NOT going to accept that your wages were foreign, and, as such, will deny all foreign tax as a credit.

The employer should refund you, or you use Form 843. You may need to provide proof of coverage under Cdn CPP.
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
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