2010 Tax thread - For Canada and the U.S.

[zyggy 9]

Hi Sapphire!

I'm hoping that someone will have an answer about the student loan interest as well. I have unused carryover amounts from student loans too.

I don't have answers to your other questions, but I do have an answer about your question for Ufile.ca U file will automatically prorate your deductions and credits based on the information you enter in the (immigrants &emigrants section of Ufile) I was playing around with Ufile and my personal exemption did go down based on the numbers I inputed in this section:

Emigration from Canada

"If the Canadian-source income you are reporting for the part of the year you were not a resident of Canada is at least 90% of your net world income for that part of the year (or if you had no income from sources inside and outside Canada for that part of the year), you are eligible to claim the full value of deductions and credits on your tax return. Otherwise your deductions and credits must be prorated by the time you resided in Canada. The program will decide if you are eligible for the 90% rule based on the information you enter here. If you leave the following sections blank, the program will assume that you are not eligible for the 90% rule and will prorate your deductions and credits.

Note

If you are claiming full federal non-refundable tax credits, attach a note to your tax return stating your net world income (in Canadian dollars) for the part of the year that you were not a resident of Canada. Show separately the net income you received from sources inside and outside Canada for that part of the year. The CRA cannot allow full federal non-refundable tax credits without this note"

Canadian source income during Canadian non-resident period

Income from employment in Canada

Income from a business carried on in Canada

Taxable capital gains from Canadian property

Taxable part of scholarships from Canada

Taxable part of fellowships from Canada

Taxable part of bursaries from Canada

Taxable part of research grants from Canada

Foreign source income earned during Canadian NR period

Name of country

Net employment income

Net pension income

Social Security

Net interest and other investment income

Taxable capital gains

Net rental income

Net self-employment income

Other income

Country of residence on December 31 2009 < select >

THat is absolutely correct. I forgot about that provision of the tax code. and it looks like ufile finally got immigrants and emigrants now. Another good development. But there are still some weaknesses as shown above.

[lgg 2]

Hi zyggy!!!!

*waves*

You were SO helpful to me last year, how're you doing?

Hope all is well...

Best,

LGG

THat is absolutely correct. I forgot about that provision of the tax code. and it looks like ufile finally got immigrants and emigrants now. Another good development. But there are still some weaknesses as shown above.

[SapphireDreams 71]

Thanks Zyggy! That answers all my questions. My Canadian income was not 90% of my net world income, so that part doesn't pertain to me.

[BH45 0]

Does anyone know what the Non-Resident Withholding Tax Rate is for 2009? Trying to call the International line is crazy!!

[ValerieA 350]

Does anyone know what the Non-Resident Withholding Tax Rate is for 2009? Trying to call the International line is crazy!!

Looks like 25%. There is a link to a calculator, also, on pg. 6.

http://www.cra-arc.gc.ca/E/pub/tg/t4061/t4061-09e.pdf

[BH45 0]

Looks like 25%. There is a link to a calculator, also, on pg. 6.

http://www.cra-arc.gc.ca/E/pub/tg/t4061/t4061-09e.pdf

Thanks ValerieA. I happened to get through to the International Tax Office just as I opened VJ. They confirmed it is 25% still.

[TimandJoyce 1]

Ufile is not set up to deal with people in our situation. Don't use it, you will do it wrong. You're going to have to do it by hand using the CRA Emigrant guide.

Ok, if I don't use ufile, what then? How do I get the forms? And who can do my taxes??? I'm lousy at this!!

Edited February 9, 2010 by TimandJoyce

[Kathryn41 3,205]

Ok, if I don't use ufile, what then? How do I get the forms? And who can do my taxes??? I'm lousy at this!!

You can request the forms to be sent to you from CRA. They will need to know what Province you lived in. If you notified CRA of your move when you relocated to the US, they will automatically mail you a package that contains your return instructions, the forms and the standard schedules.

We did ours the first year I moved here. I used the information from CRA found on line (Emigrating from Canada, etc.) and was able to get a sizeable return since 90% of my income was Canadian and I left in May so was able to claim a full year's tax credits (I had to write a letter requesting them, though). We did our US returns declaring my Canadian income and taking the Foreign Tax Credit which basically cancelled out everything, and my husband was then able to claim the spousal deductions. We found purchasing one of those published US tax guides (about $22) VERY useful, plus I did find contacting IRS through their online Help service also worthwhile. I needed some clarification and they responded quickly with exactly what I needed. Because of the foreign income we had to file a paper return that year as electronic methods wouldn't cope with it. Things may have changed since then.

[TimandJoyce 1]

You can request the forms to be sent to you from CRA. They will need to know what Province you lived in. If you notified CRA of your move when you relocated to the US, they will automatically mail you a package that contains your return instructions, the forms and the standard schedules.

We did ours the first year I moved here. I used the information from CRA found on line (Emigrating from Canada, etc.) and was able to get a sizeable return since 90% of my income was Canadian and I left in May so was able to claim a full year's tax credits (I had to write a letter requesting them, though). We did our US returns declaring my Canadian income and taking the Foreign Tax Credit which basically cancelled out everything, and my husband was then able to claim the spousal deductions. We found purchasing one of those published US tax guides (about $22) VERY useful, plus I did find contacting IRS through their online Help service also worthwhile. I needed some clarification and they responded quickly with exactly what I needed. Because of the foreign income we had to file a paper return that year as electronic methods wouldn't cope with it. Things may have changed since then.

Thanks!! I didn't actually notify CRA *slaps wrists* but I did notify GST and my Survivors benefit. I'll have to track down the # for CRA again and let them know.

All my income last year is Canadian, so hopefully it will be easyish. I do have the sale of my house, but I was told , since I lived in it, and the age I won't have to pay anything on it. ( I think my lawyers sheets say something to that effect) Tim doesn't file, so I guess we don't need to worry about anything for him, unless he's supposed to do something about my survivors, and actually, now that I think of it, should I be filing something with IRS because of it too? That would be the only thing on there.

[Married2009 32]

We were married Jan 20th, does my husband file married or single? I would've thought single, since his taxes are for 2009, and he was single for all of 2009, but now I'm not so sure.

You were not married in 2009, he would file single.

Edited February 11, 2010 by Married2009

[BH45 0]

I'm guessing that with my income being all from Canada, and they did deduct the 25% NR tax, that I really don't need to file a return with them even though it was earned in 2009 and I've lived here since July 2008?

[The_Dude 1,142]

Question for anyone familiar with turbotax.

I entered my tax information and w2 and 1098, and then filed out the 2555 to exclude my wifes foreign income. Do I need to list her income somewhere else to offset the exclusion?

[minnew 4]

Question for anyone familiar with turbotax.

I entered my tax information and w2 and 1098, and then filed out the 2555 to exclude my wifes foreign income. Do I need to list her income somewhere else to offset the exclusion?

Yes from what I have read on other threads on taxes I have bookmarked.

I can't figure out how to post the link for the thread so its pg 5. Post # 69

http://www.visajourney.com/forums/index.ph...70514&st=60

QUOTE

On the income part I entered my W2 info. Then you have to enter W2 info for Nick (UK). Well you get started by listing his income converted to US $. There's nothing to fill out but income, no other boxes like withholding, medicare, etc. At some point you say it is foreign income and you don't have a real W2 for him. So TurboTax asks if you need to complete a substitute W2 and takes you magically to another form 4852. I filled out the info on the UK employer. It asks " How did you determine the amounts?" I said from UK payslip records and that pounds sterling were converted to US dollars. Next question says to to "explain your efforts to obtain a W2 from this employer." I said " None. It is a United Kingdom employer. They do not issue US tax forms." You have to remember this form would be for anybody that might not have gotten a W2 from a regular US company so it tends to read American. It's not strictly for a person with a foreign employer. So I answered best that I could.

Then Turbo Tax will ask if you want to exclude the foreign income and takes you magically to Form 2555. Skip all the part about her rent and excluding the cost of her residence. It's not something you exclude. Foreign income up to $87600 can be excluded. That's for a whole year in the foreign country. Somewhere TurboTax asked when Nick left UK or maybe it was enter US. Anyway that's because they determine he only was a UK resident about 3/4 of the year. So they use the dates and only give him 75% of that $87,600 exclusion. Not a problem because he only worked 8 months of the year so was only reporting part of a year's salary. So using some hypothetical numbers, lets say Nick earned $40k in the UK. After you finish the substitute W2 and the Form 2555 for foreign income exclusion, the Tax return 1040 will look like this:

Line 7: will include my income plus Nicks $40k

Line 21 Other income: will have written in by TurboTax FORM 2555 and the amount will say -40,000

That's minus so it subtracts it off again.

[The_Dude 1,142]

Yes from what I have read on other threads on taxes I have bookmarked.

I can't figure out how to post the link for the thread so its pg 5. Post # 69

http://www.visajourney.com/forums/index.ph...70514&st=60

QUOTE

On the income part I entered my W2 info. Then you have to enter W2 info for Nick (UK). Well you get started by listing his income converted to US $. There's nothing to fill out but income, no other boxes like withholding, medicare, etc. At some point you say it is foreign income and you don't have a real W2 for him. So TurboTax asks if you need to complete a substitute W2 and takes you magically to another form 4852. I filled out the info on the UK employer. It asks " How did you determine the amounts?" I said from UK payslip records and that pounds sterling were converted to US dollars. Next question says to to "explain your efforts to obtain a W2 from this employer." I said " None. It is a United Kingdom employer. They do not issue US tax forms." You have to remember this form would be for anybody that might not have gotten a W2 from a regular US company so it tends to read American. It's not strictly for a person with a foreign employer. So I answered best that I could.

Then Turbo Tax will ask if you want to exclude the foreign income and takes you magically to Form 2555. Skip all the part about her rent and excluding the cost of her residence. It's not something you exclude. Foreign income up to $87600 can be excluded. That's for a whole year in the foreign country. Somewhere TurboTax asked when Nick left UK or maybe it was enter US. Anyway that's because they determine he only was a UK resident about 3/4 of the year. So they use the dates and only give him 75% of that $87,600 exclusion. Not a problem because he only worked 8 months of the year so was only reporting part of a year's salary. So using some hypothetical numbers, lets say Nick earned $40k in the UK. After you finish the substitute W2 and the Form 2555 for foreign income exclusion, the Tax return 1040 will look like this:

Line 7: will include my income plus Nicks $40k

Line 21 Other income: will have written in by TurboTax FORM 2555 and the amount will say -40,000

That's minus so it subtracts it off again.

I don't know why Turbotax will not let me enter her income like that. It simply will not give me the option for that other form, only gives me the option for a W2. I upgraded from the basic account type, so it should not be an issue of it being a premium feature or anything like that. I am really dreading having to do this by hand, but that is just what it is looking like. I've been at this for nearly 5 hours and I can't figure out how to enter her income, nor will it allow me to just wipe the data and start over. I deleted both of our entries and as soon as I re-enter my name or hers, it auto-enters the previous data. /sigh

[SonoranSongbird 3]

I used the information from CRA found on line (Emigrating from Canada, etc.) and was able to get a sizeable return since 90% of my income was Canadian and I left in May so was able to claim a full year's tax credits (I had to write a letter requesting them, though).

That 90% rule is something we are actually STILL dealing with from my husband's 2008 taxes in Canada. He had an issue with someone not sending the tax form they should have sent him until after he filed his taxes and needed to make an adjustment for that reason, plus they did not give him the full deduction, assuming that less than 90% of his income was from Canada since he emigrated in July. So he filed a form for an adjustment, adding the income that he had left out because he got the form late and also stating that all of his 2008 income was from Canadian sources. He just got a form letter today telling him that they calculated his taxes based on the adjustment. However, it appears that they added the income without changing the deduction.

So here is my question: what does he have to do or say to get them to give him the full credit because his income was all from Canadian sources? What did you say?