HI I am working on my Canadian Exit Taxes. I moved permanently to the US on a K-1 Visa in March. I was married to a US Citizen in April. I have income from my job in Canada (Jan-Feb), I received EI while in the US (April-Nov) and I worked in the US in Dec.
I am doing my return on turbo tax and it keeps forcing my Spouse to be considered a dependent because I cannot fill in the Canadian Income Sections for him as he is not a resident.
I am thinking maybe Turbo tax cannot do this situation? If it can, can anyone help me figure out how to enter my Spouse's info so he is not showing as a dependent?
(PS - I have searched and searched on here and not finding any info on this. If it is here, can you link it rather than just say it is asked and answered please! I can't find it!)
Exit Taxes in Canada - Question on US Citizen Spouse
Moderator: Mark T Serbinski CA CPA
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chiggins82
- Posts: 5
- Joined: Mon Jan 18, 2016 5:12 pm
- Location: Saint Paul, MN
Sorry, we try to avoid software issues. My only bit of advice would be to simply list her world income on page 1. It might be due to your filing a departure return.
Was your EI correctly withheld as a US resident (25%) and it should not appear on your Cdn departure return? You may benefit from doing a section 217 on that income which might result in lower Cdn tax on it. And you have correctly put your departure date?
As to your US taxes, you will no doubt be filing a full-year 104 reporting all world income including Cdn wages, and then exempting these using form 2555. You will then use form 1116 for the EI tax paid in Canada.
Was your EI correctly withheld as a US resident (25%) and it should not appear on your Cdn departure return? You may benefit from doing a section 217 on that income which might result in lower Cdn tax on it. And you have correctly put your departure date?
As to your US taxes, you will no doubt be filing a full-year 104 reporting all world income including Cdn wages, and then exempting these using form 2555. You will then use form 1116 for the EI tax paid in Canada.
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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chiggins82
- Posts: 5
- Joined: Mon Jan 18, 2016 5:12 pm
- Location: Saint Paul, MN
That is what I am thinking too. When I enter income for him, it seems to remove the credit.
25% of my EI was withheld.
What is section 217? I will try to find some info on that one. I don't think I came across it.
Using the software, I cannot put my departure date in, so I am planning to do that by hand after I print it all out since I am mailing in anyways.
With US, yes that is exactly what I am doing. I called Turbo Tax and they confirmed that should be the right way (Called IRS, but they hung up on me...)
25% of my EI was withheld.
What is section 217? I will try to find some info on that one. I don't think I came across it.
Using the software, I cannot put my departure date in, so I am planning to do that by hand after I print it all out since I am mailing in anyways.
With US, yes that is exactly what I am doing. I called Turbo Tax and they confirmed that should be the right way (Called IRS, but they hung up on me...)
When you enter his income on page 1 it SHOULD remove the credit, since you are not entitled to it.
The fact that you cannot put the departure date probably means that you have not correctly indicated your filing status. You are NOT a non-resident, you are a DEPARTING resident. The controls are set up so that you will correctly file a return for the last province you lived in as of your departure date, which is the province you should indicate where it asks your province of residence on dec 31.
Ufile.ca handles this perfectly, I would think ttax would too.
So many posters here make the mistake of entering non-resident in the software controls, which shuts down all the departure tax
The fact that you cannot put the departure date probably means that you have not correctly indicated your filing status. You are NOT a non-resident, you are a DEPARTING resident. The controls are set up so that you will correctly file a return for the last province you lived in as of your departure date, which is the province you should indicate where it asks your province of residence on dec 31.
Ufile.ca handles this perfectly, I would think ttax would too.
So many posters here make the mistake of entering non-resident in the software controls, which shuts down all the departure 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
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chiggins82
- Posts: 5
- Joined: Mon Jan 18, 2016 5:12 pm
- Location: Saint Paul, MN