Article XXV for Canadian Residents

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Fan8899
Posts: 26
Joined: Fri Dec 28, 2018 8:16 pm

Re: Article XXV for Canadian Residents

Post by Fan8899 » Sat Feb 23, 2019 11:04 pm

Not accurate, above formula is for year 2014 form 1040, year 2018 form 1040 is different, line no. is different, but the concept is same.

adeboloj
Posts: 31
Joined: Fri Mar 24, 2017 10:50 am

Re: Article XXV for Canadian Residents

Post by adeboloj » Sun Mar 17, 2019 1:05 am

Please could you send me the correct formula for 1040NR for 2018?
Thank you

nikitapunch
Posts: 13
Joined: Wed Sep 02, 2015 10:21 pm
Location: Canada

Re: Article XXV for Canadian Residents

Post by nikitapunch » Sun Mar 17, 2019 11:42 am

I am looking at using pro forma myself and already drafted my forms to see what they would look like.

I actually posted separately but did not realize this post actually had a specific calculation I needed. I had searched for ‘pro forma’. I thought this was as simple as transferring one number from the 1040 to the 1040NR. I was wrong but this answered one of my questions.

I am looking at the line numbers at the time the calculation was provided from nelsona back in 2015 (for 2014). I would think the names of lines then would still match the name of lines now.

So if I have this correct I have the line numbers and names for 2018NR and 2018 1040.

1040NR [line 42] Tax = 1040NR [line 41] Taxable income * 1040 [line 11] Tax / 1040 [line 10] Taxable income

So this appears correct from what I saw you post prior.

So this calculated number is what goes in line 1040NR line 42.

And it was nice to see that nelsona had provided direction to go up to 1040 NR line 41 (Taxable income) and then 1040 up line 11 now (versus 44) for Tax. It would be easy for someone just to continue on on the 1040.

nikitapunch
Posts: 13
Joined: Wed Sep 02, 2015 10:21 pm
Location: Canada

Re: Article XXV for Canadian Residents

Post by nikitapunch » Sun Mar 17, 2019 10:34 pm

Hi adeboloj,

I wanted to ask you when you do a pro forma 1040 married filing jointly for you and your spouse are you entering information in only one 1040? Or are you filling out two 1040 forms?

I thought I was clear on this before but now questioning myself.

If you can expand on what you do that would be helpful.

Thanks.

nikitapunch
Posts: 13
Joined: Wed Sep 02, 2015 10:21 pm
Location: Canada

Re: Article XXV for Canadian Residents

Post by nikitapunch » Sun Mar 17, 2019 11:16 pm

Sorry adeboloj.

I need to backtrack. A joint 1040 is filed by both spouses including all world income for both reported. So I take this to mean one pro forma 1040 with both spouses income added to Line1 (Wages...)

Based on your experience this is how you have been doing this on one 1040? Is the spouse also using Form 2555 exclusion to exclude Canadian income?

Any points you have experience on would be appreciated. If you can provide insight into what you do that would be helpful.

I had drafted up my 1040NR and pro forma 1040. My 1040 as a trial doesn't include my husbands income yet. It was easier for me just to do it that way initially when I also did the calculation to the 1040NR. Just did it as a test trial for the calculation only.

But if I do add my husbands income which I expect to do, this is where I get really confused. I thought I was sure before.

Posts I was reading make it seem simple until I actually started doing it.

Thanks.

adeboloj
Posts: 31
Joined: Fri Mar 24, 2017 10:50 am

Re: Article XXV for Canadian Residents

Post by adeboloj » Sun Mar 24, 2019 7:05 pm

Sorry @nikitapunch, I posted a formula based on thread from 2014/15 but Fan8899 said its not correct!

FAN8899 or Nelsona, Please could you assist here.
What is the correct formula for the tax rate on 1040NR for 2018, the form is significantly different as such formula will be different as well.

Thank you for your response!

adeboloj
Posts: 31
Joined: Fri Mar 24, 2017 10:50 am

Re: Article XXV for Canadian Residents

Post by adeboloj » Sun Mar 24, 2019 7:07 pm

adeboloj wrote:
> Sorry @nikitapunch, I posted a formula based on thread from 2014/15 but
> Fan8899 said its not correct!
>
> FAN8899 or Nelsona, Please could you assist here.
> What is the correct formula for the tax rate on 1040NR for 2018, the form
> is significantly different as such formula will be different as well.
>
> Thank you for your response!


by adeboloj » Sat Feb 23, 2019 2:19 am

is this accurate for year 2018?

1040NR[LINE 42] = 1040NR[LINE 41] * 1040[LINE 11] / 1040[LINE 10]

Complete 1040NR up till line 41, then complete 1040 up till line 11.
And this will be my xxv (2) 1040NR.

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