I was in the US for 10 years till end of 2006. Then i moved to Canada and been here since then. during my stay in the US i had invested in the IRAs.
In mid 2009, i sold the IRAs. They deducted the 10% penalty on it.
For me it was 12k
for my wife it was 13k
I have a few Qs related to that
. Do i have to file a 1040 NR and include these sales and pay taxes to US
. if a 1040 NR is filed, do we file a joint return or individual return ?
. Can i then use the tax paid in the US as a credit on my canadian taxes ?
1040 NR/sold IRA
Moderator: Mark T Serbinski CA CPA
Re: 1040 NR/sold IRA
Based on other answers in the forums. im trying answer my own Qs. If someone can just confirm that will be very helpful. [quote="njdude26"]I was in the US for 10 years till end of 2006. Then i moved to Canada and been here since then. during my stay in the US i had invested in the IRAs.
In mid 2009, i sold the IRAs. They deducted the 10% penalty on it.
For me it was 12k
for my wife it was 13k
I have a few Qs related to that
. Do i have to file a 1040 NR and include these sales and pay taxes to US
[dude] Yes. i have to include the 10% penalty in line 55. This may or may not be included in my cdn return for a credit.
. if a 1040 NR is filed, do we file a joint return or individual return ?
[dude] We can file individual return. i would rathr do that because then the income will be less than 15k that means no taxes ?
. Can i then use the tax paid in the US as a credit on my canadian taxes ?
[dude] only tax paid. mostly not the 10% penalty.
[/quote]
In mid 2009, i sold the IRAs. They deducted the 10% penalty on it.
For me it was 12k
for my wife it was 13k
I have a few Qs related to that
. Do i have to file a 1040 NR and include these sales and pay taxes to US
[dude] Yes. i have to include the 10% penalty in line 55. This may or may not be included in my cdn return for a credit.
. if a 1040 NR is filed, do we file a joint return or individual return ?
[dude] We can file individual return. i would rathr do that because then the income will be less than 15k that means no taxes ?
. Can i then use the tax paid in the US as a credit on my canadian taxes ?
[dude] only tax paid. mostly not the 10% penalty.
[/quote]
Can someone please reply as i need to file this soon :(
Can someone please reply as i need to file this soon :(
did some calculations. is this correct ?
For me : 16a and 16b has 12k. line 39 - 3650 (exemptions)
tax line 41 = 12 - 3650 - from tax table look for 8350 . So tax for 41 = 839. 10% has already been deducted. so i sent them a check for $849.
similar calcualation for my wife .
tax line 41 = 12 - 3650 - from tax table look for 8350 . So tax for 41 = 839. 10% has already been deducted. so i sent them a check for $849.
similar calcualation for my wife .
The penalty is EXTRA tax. You need to add it to your regular tax. there is a line for that.
You can use the regular tax as a credit on your CDn return but not the penalty.
You can use the regular tax as a credit on your CDn return but not the penalty.
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
is it line 55
is it line 55 for the 10% which the bank has already deducted and i dont need to pay again ?
is it line 55
is it line 55 for the 10% which the bank has already deducted and i dont need to pay again ?. Also i assume that the tax is from the regular tax table and no flat tax ?
sorry i bumped the other one. it was because i had to get it done by this week.
sorry i bumped the other one. it was because i had to get it done by this week.