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zyggy

Section 217 Rules

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We did a Section 217 reutrn this year for my wife's EI Income and got a whopping $2,500 back. If received EI and very little other income in the US, you could be in for a big tax refund... You have until June 30 to file for it for 2005.

Edited by zyggy

Knowledge itself is power - Sir Francis Bacon

I have gone fishing... you can find me by going here http://**removed due to TOS**

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How exactly does it work?? I entered the US in February. Would I have to do it next year? Can I do it this year??


Adjustment of Status 2008

May 6, 2008 ~~~~~~~ I751 package mailed to Vermont

May 17, 2008 ~~~~~~~~Check Cashed

May 19, 2008 ~~~~~~~~ NOA1

June 20, 2008 ~~~~~~~ Fingerprinting appointment

April 1, 2009 ~~~~~~~~ APPROVED!!!!

K-1 Visa

October 11, 2005 ~~~~~ Mailed I129F (Vermont)

October 25, 2005 ~~~~~ NOA2 in email (yay)

February 8, 2006 ~~~~~ Interview Day! APPROVED!!!

AOS, EAD, AP

March 27, 2006 ~~~~~~ Mailed AOS, EAD, AP to Chicago

March 29, 2006 ~~~~~~ AOS, EAD, AP arrives at Chicago Lockbox

March 31, 2006 ~~~~~~~ NOA's for all 3

April 18, 2006 ~~~~~~ Biometrics Appointment in Providence

May 15, 2006 ~~~~~~ RFE in the mail-more financial info

May 26, 2006 ~~~~~~ AOS touched

June 19, 2006 ~~~~~ EAD Card in the mail

July 27, 2006 ~~~~~ Interview for Green Card

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How exactly does it work?? I entered the US in February. Would I have to do it next year? Can I do it this year??

Yes.. since you arrived in February, it would apply to you for your 2006 T1...

It works like this... When you're a non-resident, a 25% non-resident tax is withheld from your return. Under Section 217, your tax rate as a non-resident is either 25% or the federal non-resident tax rate (normal federal tax rate + non-resident curcharge) that is related to your worldwide income which ever is less. If you lived in Canada for part of the year (like in your case), you could file as a Partial Year Section 217 for your Leving Canada return. That is treat yourself as a resident for the time that you were in Canada, and as a 217 for the time that you were outside of Canada.

This year (2005) if your income was less than $35,595 CAD, it's typically better for you to take the Section 217 (federal + Provincial tax rate is less than 25%)... if you made more than that amount... it's better to just do your taxes the regular way and not worry about the non-resident witholding tax...


Knowledge itself is power - Sir Francis Bacon

I have gone fishing... you can find me by going here http://**removed due to TOS**

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I guess I will have to do it next year. I did make under 35K last year (2005) but I have already filed my taxes as a resident as per the International Tax Offices info.

So, next April, when filing my 2006 return, I can use this fort he 2 months I was in Canada and working still??

And this section 217, if it on the Canadian Tax return??? Do I need to request anything special??

I'm going to save this topic, so am just asking now so I have it all in one place.

Thanks for the help!!!!! :)


Adjustment of Status 2008

May 6, 2008 ~~~~~~~ I751 package mailed to Vermont

May 17, 2008 ~~~~~~~~Check Cashed

May 19, 2008 ~~~~~~~~ NOA1

June 20, 2008 ~~~~~~~ Fingerprinting appointment

April 1, 2009 ~~~~~~~~ APPROVED!!!!

K-1 Visa

October 11, 2005 ~~~~~ Mailed I129F (Vermont)

October 25, 2005 ~~~~~ NOA2 in email (yay)

February 8, 2006 ~~~~~ Interview Day! APPROVED!!!

AOS, EAD, AP

March 27, 2006 ~~~~~~ Mailed AOS, EAD, AP to Chicago

March 29, 2006 ~~~~~~ AOS, EAD, AP arrives at Chicago Lockbox

March 31, 2006 ~~~~~~~ NOA's for all 3

April 18, 2006 ~~~~~~ Biometrics Appointment in Providence

May 15, 2006 ~~~~~~ RFE in the mail-more financial info

May 26, 2006 ~~~~~~ AOS touched

June 19, 2006 ~~~~~ EAD Card in the mail

July 27, 2006 ~~~~~ Interview for Green Card

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yep, makes a big difference!!! Used it this past yr.


Canadians Visiting the USA while undergoing the visa process, my free advice:

1) Always tell the TRUTH. never lie to the POE officer

2) Be confident in ur replies

3) keep ur response short and to the point, don't tell ur life story!!

4) look the POE officer in the eye when speaking to them. They are looking for people lieing and have been trained to find them!

5) Pack light! No job resumes with you

6) Bring ties to Canada (letter from employer when ur expected back at work, lease, etc etc)

7) Always be polite, being rude isn't going to get ya anywhere, and could make things worse!!

8) Have a plan in case u do get denied (be polite) It wont harm ur visa application if ur denied,that is if ur polite and didn't lie! Refer to #1

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I guess I will have to do it next year. I did make under 35K last year (2005) but I have already filed my taxes as a resident as per the International Tax Offices info.

So, next April, when filing my 2006 return, I can use this fort he 2 months I was in Canada and working still??

And this section 217, if it on the Canadian Tax return??? Do I need to request anything special??

I'm going to save this topic, so am just asking now so I have it all in one place.

Thanks for the help!!!!! :)

YEah, you would fill out the return for the province that you lived in when you left Canada and do it the same as if you were doing a normal return.

If you do only a Leaving Canada return, all you would do is declare your income while you were still resident in Canada. You would also place LEAVING CANADA RETURN across the top of your T1.

For a Section 217, you include all your worldwide income for the entire year and you write on the top LEAVING CANADA RETURN- PARTIAL SECTION 217. In this case, you would include your worldwide income.. and for your taxes taken out you would include the 25% taken out of your EI, the taxes taken from your income while you were still in Canada.. and your taxes taken out of any US income to be declared as a foreign tax credit.

You file the return that gives you the most money back...

Edited by zyggy

Knowledge itself is power - Sir Francis Bacon

I have gone fishing... you can find me by going here http://**removed due to TOS**

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