Hi. I was directed to this site and there is so much great information! I have read through things but it seems the more, I read, the more confused I get. So, I'd like to ask a few questions.
brief summary of situation...
~dh is cnd, I am US citizen-both moved from Canada to US on May 31, 2008.
~He still received 9 checks (1 per week for 9 weeks) after we moved (it was a deal he made with his company in return for him doing a 'voluntary' layoff)-they were directly deposited into his Canadian bank account
~He received a check for his RRSP a couple months after we moved (very small check)
~He started working here in the US in September 2008
~we received the UCC for 2 months after we moved before they stopped it (even after I called to tell them)
My understanding...
~We file a leaving Canada form (what exactly is that? Is it in with the general forms? Is it completely separate?)
~We put May 31 as the date we left, but we still include all the money from the remaining 9 checks he received even after he left on our Canadian return
~We fill in his Canadian income for 2008 on our US forms, but then file a 2555 for the foreign tax credit
~We fill out form 8891 for the RRSP that dh got (it was a very small amount) and a 1116 for the 25% that was taxed
~We can fill out the info for Canada on a program but have to print it off and send it all in to the international tax place
Ok, so here are the remaining questions...
1-Can I file turbo tax in the US? Or do I need to do it on the paper forms?
2-For the rrsp, we got 2 things for taxes--one notes a contribution amount and the period covered as Mar-Dec 08. What is this for? And why is it for a time period that we aren't even in Canada? The other is an NR4 and shows the gross income and the NR tax withheld. Where does this go? On the 8891?
3-Which form exactly are we suppose to be filling out for the US taxes?
4-Where does the UCC go, just on the Canadian return? Even the 2 months we recieved after being in the US?
5-How do we do the exchange rate to conver CND to US?
Thank you for your time and help!
Need help with CND/US tax forms
Moderator: Mark T Serbinski CA CPA
I trust you have always filed your US return in the past? This is the first thing to make sure of.
Your Cdn departure return, is simply the provincial return where you lived before leaving, but witha departure date on page 1. Then you abide by all the information in the Emigrants' guide from CRA. You will include all income earned 'til May, and all Cdn income earned after that (except for the RRSP withdrawal amount - the 25% NR tax has already been paid on that - make sure it was 25% otherwise it was not done correctly). You also have to account for any deemed disposition of assets you had at teh time of move. Read the emigrants guide.
As to the RRSP receipt you got. Did he make an RRSP contribution in mar-Dec 2008? That is the only reason that he would get such a receipt.
After you answer these qestions, I'll move on to the US side of things...
Your Cdn departure return, is simply the provincial return where you lived before leaving, but witha departure date on page 1. Then you abide by all the information in the Emigrants' guide from CRA. You will include all income earned 'til May, and all Cdn income earned after that (except for the RRSP withdrawal amount - the 25% NR tax has already been paid on that - make sure it was 25% otherwise it was not done correctly). You also have to account for any deemed disposition of assets you had at teh time of move. Read the emigrants guide.
As to the RRSP receipt you got. Did he make an RRSP contribution in mar-Dec 2008? That is the only reason that he would get such a receipt.
After you answer these qestions, I'll move on to the US side of things...
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
Thanks for your response!
I always filed when I was living here (in the US) but didn't when I moved to Canada because I never worked and was told I didn't need to if my income was $0. Is that correct?
Yes, I figured it out and it was 25%.
I wasn't aware that he made any contributions. I know he didn't after we left but I guess maybe he was through his work. I think mabye his work was putting in some each week. Do I need to put that on taxes anywhere or does that amount not matter?
I always filed when I was living here (in the US) but didn't when I moved to Canada because I never worked and was told I didn't need to if my income was $0. Is that correct?
Yes, I figured it out and it was 25%.
I wasn't aware that he made any contributions. I know he didn't after we left but I guess maybe he was through his work. I think mabye his work was putting in some each week. Do I need to put that on taxes anywhere or does that amount not matter?
You did not have to file because of your income level.
The contributions will go on his Cdn return as a deduction.
Now, to the US:
He will report every penny he made on your 1040. Since he collapsed his RRSP soon after moving to US, it is unlikley that any of it is taxable. So the gross ammount goes on line 16a and 0 on 16b. Form 8891 will be filed to report the existence of the RRSP and the withdrawal. he doesn't need to make any election, since he never sheltered any income and the RRSP is now dead.
As to using form 2555, only the income received before departure can be excluded, the rest must be reported as wages and you can use the foreign tax credits (form 1116) to get some tax relief.
The contributions will go on his Cdn return as a deduction.
Now, to the US:
He will report every penny he made on your 1040. Since he collapsed his RRSP soon after moving to US, it is unlikley that any of it is taxable. So the gross ammount goes on line 16a and 0 on 16b. Form 8891 will be filed to report the existence of the RRSP and the withdrawal. he doesn't need to make any election, since he never sheltered any income and the RRSP is now dead.
As to using form 2555, only the income received before departure can be excluded, the rest must be reported as wages and you can use the foreign tax credits (form 1116) to get some tax relief.
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
Thank you so much!
So, we do or don't use the 2555? I'm sorry, this is all still so new to me and I'm having a hard time understanding it all.
Also, can we use turbo tax for the US? Does it have all of the forms required? And what about the Canadian-I know we have to mail the stuff in but can we use a program for that one too and then just print it off and send it in? If so, I'd rather do that just so I don't have to do all the calculating and switching between forms and such.
So, we do or don't use the 2555? I'm sorry, this is all still so new to me and I'm having a hard time understanding it all.
Also, can we use turbo tax for the US? Does it have all of the forms required? And what about the Canadian-I know we have to mail the stuff in but can we use a program for that one too and then just print it off and send it in? If so, I'd rather do that just so I don't have to do all the calculating and switching between forms and such.
Turbotax is fine. It icludes the 8891.
You can use 2555 for the wages earned before may, and 1116 on all other Cdn income.
Or you can use 1116 on everything.
The trouble you will face is that the tax you paid on your RRSP is not going to be used up, and you will have a huge carryforwrd that you won't bable to use.
You can use 2555 for the wages earned before may, and 1116 on all other Cdn income.
Or you can use 1116 on everything.
The trouble you will face is that the tax you paid on your RRSP is not going to be used up, and you will have a huge carryforwrd that you won't bable to use.
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