I am a Canadian Citizen working in US on TN,
I am single, no children and no US investments-- just employment income. I received my first TN Nov 2007 and I filed. Last year I filed 1040 NR
This year nothing has changed in my income. My TN was renewed for 3 years Nov 2008. I do have an RRSP in Canada but i have not contributed in years and i have lost money.
I noticed there is a 1040NR EZ as i have no children, should i file this form?
If there was no departure return for filed on the Canadian end when i filed taxes last year, what is the process to recitify? Can you provide some clarity on how to file in Canada. It wasdone last year.
So for this year, what is the proper forms to file in US and Canada and do i include the 10,000 treaty exemption.
I hope i am making sense.
Thanks
TN TAX FILING
Moderator: Mark T Serbinski CA CPA
You are a now a US resident (an alien resident for tax purposes) and thus shouldfile a 1040 like everyone else.
You don't exempt any income on that return. Youalso must report the existence of your RRSP on form 8891, and decide if you want to defer US taxation on the internal income onf the RRSP.
For canada, yes, you should have made a departure return last year, but I suggest doing do this year, writing Jan 01, 2008 as your departure date.
You need to adhere to the steps outlined in the Emigrants guide available on the CRA website.
By the way, just so you understand the $10K exemption: if you were resident in canada and temporarily worked in US and earned less than $10K US in a particular year, you could exempt the entire wage from US taxation.
If you (a) are not resident in US, or (b) earne more than $10K in US wages, you cannot exempt any of the income.
You do not, as you seem to imply, get to take off $10K of wages off the top.
You don't exempt any income on that return. Youalso must report the existence of your RRSP on form 8891, and decide if you want to defer US taxation on the internal income onf the RRSP.
For canada, yes, you should have made a departure return last year, but I suggest doing do this year, writing Jan 01, 2008 as your departure date.
You need to adhere to the steps outlined in the Emigrants guide available on the CRA website.
By the way, just so you understand the $10K exemption: if you were resident in canada and temporarily worked in US and earned less than $10K US in a particular year, you could exempt the entire wage from US taxation.
If you (a) are not resident in US, or (b) earne more than $10K in US wages, you cannot exempt any of the income.
You do not, as you seem to imply, get to take off $10K of wages off the top.
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
from my understanding the basis of TN Visa is that you are a Canadian Resident working in the US. If I file a 1040 would that not imply i am a resident? would that affect me when crossing back and forth CBP.
What if i did not file for my RRSP last year, what are the effects?
If i received some fund from my pension in Ontario this year where do i claim that on 1040? It was a one time lump sum under $3000.00 cdn-- omers pension rollover.
What if i did not file for my RRSP last year, what are the effects?
If i received some fund from my pension in Ontario this year where do i claim that on 1040? It was a one time lump sum under $3000.00 cdn-- omers pension rollover.
You've been around the TN immig boards long enough to know that is not the case. There is no requirement that foreign residence be maintained while on TN.
Besides, what residential ties do you have in canada? You even asked about a Cdn departure tax return.
As to the pension, it is supposed to be taxed 25% in canada. Flat rate. Not reported on your Cdn return. You will need tosend a letter to CRA to either get back or suplement what was withheld.
In US you report the entire amount (pre-tax) on pension line. 16a and b.
Since you used 1040NR last year, you did not have to report anything about the RRSP. For 2008 though, you need to use form 8891 for your RRSP and form TDF90-20.1 for all your foreign accounts.
Any other questions you have will have to be answered by my previous posts. I've answered all issues that you might possibly think of. You are coming to this issue a little late in the tax season...
happy browsing.
Then you use form 1116 to get credit for some of the Cdn tax.
Besides, what residential ties do you have in canada? You even asked about a Cdn departure tax return.
As to the pension, it is supposed to be taxed 25% in canada. Flat rate. Not reported on your Cdn return. You will need tosend a letter to CRA to either get back or suplement what was withheld.
In US you report the entire amount (pre-tax) on pension line. 16a and b.
Since you used 1040NR last year, you did not have to report anything about the RRSP. For 2008 though, you need to use form 8891 for your RRSP and form TDF90-20.1 for all your foreign accounts.
Any other questions you have will have to be answered by my previous posts. I've answered all issues that you might possibly think of. You are coming to this issue a little late in the tax season...
happy browsing.
Then you use form 1116 to get credit for some of the Cdn tax.
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