Tax help?

[crypto2k2 0]

Hello,

I'm a Canadian citizen who immigrated to the USA on April 16th, 2010. Before that, I lived and worked in Canada at a Canadian company earning Canadian $ income. I started US employment after I received my green card on May 1st, 2010 where I worked for the remainder of the year. I also visited my wife (who lived in the US) numerous times before I officially immigrated on April 16th. I'm attempting to complete my US tax return this year and appear to be getting taxed on my Canadian income by the IRS since they are saying that I'm considered a resident for the full year rather than on the date I crossed the border for the first time after being issued by green card (April 16th). Does this sound right to anyone? In my mind, I should pay Canadian taxes to the Canadian government on the income I earned while living and working in Canada and pay US taxes to the IRS upon official immigration and after receiving US employment income (e.g. After April 16th). Why on earth would the IRS be able to tax me on Canadian income that earned while living in Canada?

I'm based in Chicago. Does anyone have any advice on my situation or could anyone refer me to a good local accountant? It's crunch time, taxes are due on Monday! :|

Thanks a lot!

[Darnell 8,479]

Look at IRS form 2225. (Foreign Income Exclusion)

[Dakine10 5,452]

Hello,

I'm a Canadian citizen who immigrated to the USA on April 16th, 2010. Before that, I lived and worked in Canada at a Canadian company earning Canadian $ income. I started US employment after I received my green card on May 1st, 2010 where I worked for the remainder of the year. I also visited my wife (who lived in the US) numerous times before I officially immigrated on April 16th. I'm attempting to complete my US tax return this year and appear to be getting taxed on my Canadian income by the IRS since they are saying that I'm considered a resident for the full year rather than on the date I crossed the border for the first time after being issued by green card (April 16th). Does this sound right to anyone? In my mind, I should pay Canadian taxes to the Canadian government on the income I earned while living and working in Canada and pay US taxes to the IRS upon official immigration and after receiving US employment income (e.g. After April 16th). Why on earth would the IRS be able to tax me on Canadian income that earned while living in Canada?

I'm based in Chicago. Does anyone have any advice on my situation or could anyone refer me to a good local accountant? It's crunch time, taxes are due on Monday! :|

Thanks a lot!

The scenario you described is correct. You have two options, the foreign earned income exclusion (FEIE) or foreign tax credit (FTC). FEIE is almost always more advantageous but has specific criteria that must be met. To claim the FEIE, use IRS form 2555 as Darnell posted above.

If you don't meet the criteria for the FEIE, you can file for the FTC using IRS form 1116. See the links below.

http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html

http://www.irs.gov/businesses/article/0,,id=183263,00.html