Im sooo ready to throw in the towel. But I want to know if someone can help me with my taxes from here before I do.
For the year of 2009, I entered US with a K3 spouse visa on April 24, 2009. I didn't receive my green card until this month. I already determined that Im eligible to be considered a resident for tax purposes. My husband is a US citizen and he has already filed his taxes Married Filing Separately (he did not want to wait to get my taxes filed as no one in our town want to touch my taxes)
I am a Canadian citizen and I received canadian income up until April 2009 before I moved to US. So i am ready to file that (i havent sent it yet since I don't have a clear idea how its connected to US taxes). I also collected Canadian EI from August 2009 to present. and EI has already taken 25% non resident tax which I didn't include in my Canada Tax return.
I have 3 W2 and my US income totals to $6,055USD. I'm using 1040A for my W2's and file Form 1116 for my Canadian Employment Insurance. I just dont have a clear idea if I include the EI amount with my W2 amount on Form 1040A. And I don't also know if I include my 2009 canadian income earned before I moved to US on Form 2555 & 1116 or report it to IRS or exclude and use form 2555 since I didn't live in US when I earned the income .... very confused here.
Question about 1116 & 2555 for resident alien
Moderator: Mark T Serbinski CA CPA
Your Cdn taxes should be pretty easy, since you left canada. Read the Emigrant guide from CRA. Your EI was handled correctly, and you do not need to report it on your Cdn exit return, but you have the option of including it on your exit return if this lowers your tax. You do have to correctly file your Cdn return witha a departure date.
I'm curious how you are still collecting EI from canada while having employemnt income in US. Sounds fishy.
For US, you are correct that you are a resident alien from April 2009. that means you either file MFJ with husband, (as if full year in US), or MFS full-year, or MFS part-year by yourself.
You should *probably* be correcting your husbands return do that you file MFJ, he has probably over paid his own tax because of filing MFS. You would include all Cdn income (wages, EI, etc) for the whole year and then exclude your Cdn wages by 2555 and take credit for Cdn taxes by 1116 for all other Cdn income.
If you decide to stay MFS, then you have the additional option of filing "dual-status" and report all income from after your move, (EI, but not Cdn wages) and use 1116 to get credit for Cdn tax.
our coming here a little late in the game for me to give you much more help other than to read what I've allready posted on first year taxes.
I'm curious how you are still collecting EI from canada while having employemnt income in US. Sounds fishy.
For US, you are correct that you are a resident alien from April 2009. that means you either file MFJ with husband, (as if full year in US), or MFS full-year, or MFS part-year by yourself.
You should *probably* be correcting your husbands return do that you file MFJ, he has probably over paid his own tax because of filing MFS. You would include all Cdn income (wages, EI, etc) for the whole year and then exclude your Cdn wages by 2555 and take credit for Cdn taxes by 1116 for all other Cdn income.
If you decide to stay MFS, then you have the additional option of filing "dual-status" and report all income from after your move, (EI, but not Cdn wages) and use 1116 to get credit for Cdn tax.
our coming here a little late in the game for me to give you much more help other than to read what I've allready posted on first year 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
THANK YOU! you answered my question and I just got off the phone with IRS. It was complicated to talk to them since I have to answer only "yes or no".
another quick question.
1. Do I (and/or my spouse) need to write a letter stating I be treated resident alien for 2009 tax? or I dont need the letter, assuming IRS knows this?
2. I might get flack from you for missing the answer to this question you probably have answered a million times. But, it might just be that I've been reading too many info and search WWW, i've missed it.
* Do I include my EI in form 1040 like a regular wage (line 7) and taxes withheld taxes from EI on line 38 correct ?
another quick question.
1. Do I (and/or my spouse) need to write a letter stating I be treated resident alien for 2009 tax? or I dont need the letter, assuming IRS knows this?
2. I might get flack from you for missing the answer to this question you probably have answered a million times. But, it might just be that I've been reading too many info and search WWW, i've missed it.
* Do I include my EI in form 1040 like a regular wage (line 7) and taxes withheld taxes from EI on line 38 correct ?
I'll only answer your question if you answer the one I asked about how you collected EI while working in US..
Btw, don't bother with IRS telephlunkies, they are almost never correct.
Btw, don't bother with IRS telephlunkies, they are almost never correct.
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
o right i forgot to answer the EI quesstion. I had a part time job (not full time)
As long as the canadian is working under 30 hours (over 30 hours is considered full time), he/she is able to receive the difference of their EI amount. For example, I receive $450 EI every week and I only worked part time in US and made $200 that week. EI Canada will send me the difference. Its a great benefit! Also, if lets say you have 2 part time jobs and end up working over 30 hours but your income is still lower than your employment benefit for that week, then its to the EI Rep's discretion to determine if you're eligible to receive your benefit for that week. (but on the website, it will say different. But, I have received EI even when I worked over 30 hours - less than 40 hours).
Questions about EI for US residents is all here: http://www.servicecanada.gc.ca/eng/ei/t ... shtml#much
Hope that helps
As long as the canadian is working under 30 hours (over 30 hours is considered full time), he/she is able to receive the difference of their EI amount. For example, I receive $450 EI every week and I only worked part time in US and made $200 that week. EI Canada will send me the difference. Its a great benefit! Also, if lets say you have 2 part time jobs and end up working over 30 hours but your income is still lower than your employment benefit for that week, then its to the EI Rep's discretion to determine if you're eligible to receive your benefit for that week. (but on the website, it will say different. But, I have received EI even when I worked over 30 hours - less than 40 hours).
Questions about EI for US residents is all here: http://www.servicecanada.gc.ca/eng/ei/t ... shtml#much
Hope that helps
Ok. back to your question..
The guidance for 1040 is that you report foreign income on the line that you would report it if it was paid in US.
So your EI goes on the line for unemployment. It is not wages, it is UI.
The tax you paid in canada NEVER goes directly on 1040. it is not IRS tax. It is either reported as a foreign tax deduction -- if you itemize-- on schedule A or it is reported on form 1116 and use towards a credit on your 1040.
If you file dual-status MFS, you will be attaching a statement (usually a 1040NR) to account for Jan-April.
If you file full-year MFS, you don't need to do anything special, but you need to report all your 2009 world income.
If you file MFJ by amending husbands return (best option), you don't really need to add a statement, since you have become resident, a statement would be added if you were non-resident at the end of 2009.
The guidance for 1040 is that you report foreign income on the line that you would report it if it was paid in US.
So your EI goes on the line for unemployment. It is not wages, it is UI.
The tax you paid in canada NEVER goes directly on 1040. it is not IRS tax. It is either reported as a foreign tax deduction -- if you itemize-- on schedule A or it is reported on form 1116 and use towards a credit on your 1040.
If you file dual-status MFS, you will be attaching a statement (usually a 1040NR) to account for Jan-April.
If you file full-year MFS, you don't need to do anything special, but you need to report all your 2009 world income.
If you file MFJ by amending husbands return (best option), you don't really need to add a statement, since you have become resident, a statement would be added if you were non-resident at the end of 2009.
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
I'd also be looking more closely at reducing the Cdn tax on your EI by including it on your 2009 departure return. It is income eligible for the 217 election.
Same in 2010 when you do that return next year.
Same in 2010 when you do that return next 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
Im going to file full year MFS, and when I asked IRS what my calendar year is for 2009 they said "as of April 24, 2009, I am a resident alien for tax purposes and all world wide income from that day forward is what I report". Is this correct? (you mentioned IRS can me unreliable. lol)
So, just to clarify, I do not report my canadian income before I entered on April 24, 2009?
So, just to clarify, I do not report my canadian income before I entered on April 24, 2009?
Yes, you MUST report ALL world income for 2009 if you want to file MFJ. There is no option on this.
Then you exclude your Cdn wages by 2555, and you take foreign tax credit for Cdn tax on any other income using 1116.
If you do not want to report Cdn income, you must fike dual-status, which does not allow MFJ, and has many other restrictions, which raised your husband's tax considerably.
Then you exclude your Cdn wages by 2555, and you take foreign tax credit for Cdn tax on any other income using 1116.
If you do not want to report Cdn income, you must fike dual-status, which does not allow MFJ, and has many other restrictions, which raised your husband's tax considerably.
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
oh i will be filing MFS. I made my husband aware it is to our benefit that we file joint but he didn't want to wait. (oh well!).
I'm getting a good chunk from my Canada tax return so no worries.
I dont know maybe Im the only one that dont care if i get a large return or zero! haha. i Just want to file this correctly and not have IRS contact me again.
I'm getting a good chunk from my Canada tax return so no worries.
I dont know maybe Im the only one that dont care if i get a large return or zero! haha. i Just want to file this correctly and not have IRS contact me again.
I finally hired a tax accountant to do my taxes.
He prepared form 1040 with form 1116.
But, I'm pretty screwed with IRS due to the fact I had to include all my 2009 income (yes, even the one before I moved to US). It turns out, my "worldwide income - canadian income of 4 months" before I moved put me in a higher US tax bracket and I have to pay additional taxes to IRS - I've already paid my Canadian taxes on it!!! I feel like I'm double taxed. I dont understand this logic!!! Accountant says If I only had my US income included, I wouldnt have to pay any taxes. I am not eligible to exclude this income. My accountant says this is just how US taxes work. But then again, i filed Married filing separately. I still dont think it would have been a benefit to my husband if I filed joint. I would probably decrease his return anyways.
I dont know. it sounds all fishy to me that I have to pay additional taxes when i already paid CRA. I don't mind paying taxes I owe, its the fact I feel like im double taxed. Is this even correct?
He prepared form 1040 with form 1116.
But, I'm pretty screwed with IRS due to the fact I had to include all my 2009 income (yes, even the one before I moved to US). It turns out, my "worldwide income - canadian income of 4 months" before I moved put me in a higher US tax bracket and I have to pay additional taxes to IRS - I've already paid my Canadian taxes on it!!! I feel like I'm double taxed. I dont understand this logic!!! Accountant says If I only had my US income included, I wouldnt have to pay any taxes. I am not eligible to exclude this income. My accountant says this is just how US taxes work. But then again, i filed Married filing separately. I still dont think it would have been a benefit to my husband if I filed joint. I would probably decrease his return anyways.
I dont know. it sounds all fishy to me that I have to pay additional taxes when i already paid CRA. I don't mind paying taxes I owe, its the fact I feel like im double taxed. Is this even correct?
You ARE eligible to exclude your Cdn income if you lived in canada befor moving to US -- this is a treaty issue that he is probably unfamiliar with. Did you use a cross-border expert?
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
yes I did use a cross border tax accountant. and he kept telling me that since I'm considered a "resident alien", I HAVE to put all my 2009 income (even the income i made before moving to US). He said if i didnt include it, I have to use 1040NR and do a dual status tax return. I cant use 2555 b/c my closer tax home is US.
he said he has discussed this with other cross border accountants and they all agree.
he said he has discussed this with other cross border accountants and they all agree.