US resident,CAN non-resident with salary income from Canada

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kwirky0
Posts: 20
Joined: Fri Feb 29, 2008 3:10 pm

US resident,CAN non-resident with salary income from Canada

Post by kwirky0 »

We are Canadian non-resident and US resident. My wife has some salary income from a Canadian company this year. The company will probably issue her a T4 next year, not sure whether it will be a T4 or something else. We file MFJ in the US. How should we file tax return for 2009?
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Did you bothe become non-residents this year or in a previous 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
kwirky0
Posts: 20
Joined: Fri Feb 29, 2008 3:10 pm

Post by kwirky0 »

We became non-resident last year.
nelsona
Posts: 18677
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

If this wage is the only reportable Cdn income (you don't report any Cdn income that is subject to flat tax, like Cdn bank interest, RRSP withdrawal, etc), she should file the tax return for the province she worked in. She is still considered non-resident.

if the amount on her T4 is less that $10K, she will report that income on the wage line of the tax return, and then exclude the entire ammount on line 256 of the return, since this is exempt from Cdn tax by treaty with US. So she will owe no tax in Canad if the wages were less than 10K. If more than 10K, she will report in on the wage line, and then calculate her fed tax (using the schedules in the non-resident guide) and prov tax using the form for her province. Hopefully the wages were less than 10K, as that will make things simpler.

In US, she reports the income as wages, and then takes credit on form 1116 for fed and prov tax calculated on the return (if any) plus any CPP and EI that were deducted by the employer.
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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