Canadian working in USA under TN, Tax return quote.
> Dear David
>
>
> I am a Canadian
and working at Maryland, USA. I am working under TN. I
> went to USA to
work since end of May 2007. From January 2007 to April
> 2007, I work
part time at Vancouver. I am Single and
> I have cancelled all my Bank
account, credit cards in Canada. I don't have
> any investment in Canada
but I have 401K in USA since I start working.
> I and my family bought
a townhouse in December 2007, so there is one
> property under my name (
I am the co-owner). I am confused about the Tax
> between Canada and USA,
and from my understanding I have to file to both
> of them for year 2007.
Do I have to write the determination of
> non-residence form to CRA
before filing the tax-return for 2007? I am
> wondering how much it will
cost if you help me to file the tax return to
> both country. Thanks very
much.
--------------------------------------------
david ingram
replies:
You need to file a departing Canada T1 tax return which will
report the
income you earned in Canada. Normally, you would also need to
file forms
1161, 1243 and 1244 as well but only if you still owned assets
such as real
estate or mutual funds (anywhere in the world) when you
left.
For the US, you have a choice of filing a 1040 Dual Status return
plus a
1040NR dual status statement OR a 1040 with the Canadian income
reported on
the 1040 as well. In this case, it would likely be less US
tax because you
get to claim the full standard deduction and it is unlikely
that your
itemized deductions would be enough to make a difference on a dual
status
tax return. (That would not likely be true if you had bought
your
townhouse in August and had 5 months of interest and taxes to deduct).
You
make the tax owing on the US for the Canadian income by filing US form
1116
to claim the foreign tax credit OR you file a form 2350 extension and
exempt
the reported Canadian Income of form 2555.. In other words,
your US return
can be filed three different ways and there is NO right way
without doing
all the calculations first.
For Maryland, the only
choice is to form 502 and mark a P on the right hand
side 1/3rd of the way
down to indicate that you are a part year resident. If
the 2350/2555 choice
was made for
If we help you (that is what we do) the fee would be between
$900 and
$2,900. Moving in or out of the country with income in both
countries and no
Canadian assets and no RRSP accounts will likely be in the
$1,200 range.
You can get a better idea of our costs by looking at the
pricing down below.
I am confused by the contradiction in your
question. First you say you are
single - then you say your 'family'
bought the townhouse. Did your parents
or siblings buy half to help
you out or are they living there with
you.
------------------------------------------------------------
On
December 25, 2007, David Ingram wrote:
It is very unlikely that blind or
unexpected email to me will be answered.
I receive anywhere from 100 to
700 unsolicited emails a day and usually
answer anywhere from 2 to 20
if they are not from existing clients.
Existing clients are advised to put
their 'name and PAYING CUSTOMER' in the
subject line and get answered
first. I also refuse to be a slave to email
and do not look at it
every day and have never ever looked at it when I am
out of town. e
bankruptcy expert US Canada Canadian American Mexican
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However, I regularly search for the words"PAYING
CUSTOMER" and always answer
them first if they did not get spammed out. For
the last two weeks, I have
just found out that my own email notes to myself
have been spammed out and
as an example, as I write this on Dec 25, 2007
since June 16th, my 'spammed
out' box has 47,941 unread messages, my deleted
box has 16645 I have
actually looked at and deleted and I have actually
answered 1234 email
questions for clients and strangers without sending a
bill. I have also put
aside 847 messages that I am maybe going to try
and answer because they look
interesting. -e bankruptcy expert US
Canada Canadian American Mexican
Income Tax service and
help
Therefore, if an email is not answered in 24 to 36 hours, it is
likely lost
in space. You can try and resend it but if important AND
YOU TRULY WANT OR
NEED AN ANSWER from 'me', you will have to phone to make
an appointment.
Gillian Bryan generally accepts appointment requests for me
between 10:30 AM
and 4:00 PM Monday to Friday VANCOUVER (Seattle, Portland,
Los Angeles) time
at (604) 980-0321. david ingram expert US
Canada Canadian American
Mexican Income Tax service and help.
david
ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and
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My Home
office is at:
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(604) 980-0321 Fax (604) 980-0325
Calls
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(please do not fax or phone outside of those hours as this is a home office)
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consultation
and is to be regarded only as general comment. Nothing in
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David
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Americans & Canadians from New York to California to Mexico
family, estate,
income trust trusts Cross border, dual citizen - out of
country investments
are all handled with competence &
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Phone consultations are $400 for 15 minutes to 50 minutes
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be returned to Canada or a phone consultation is in Canada.
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This is not intended to be definitive but in general I am
quoting $900 to
$2,900 for a dual country tax return.
$900 would be
one T4 slip one W2 slip one or two interest slips and you
lived in one
country only (but were filing both countries) - no self
employment or
rentals or capital gains - you did not move into or out of the
country in
this year.
$1,100 would be the same with one rental
$1,300 would
be the same with one business no rental
$1,300 would be the minimum with
a move in or out of the country. These are
complicated because of the back
and forth foreign tax credits. - The IRS
says a foreign tax credit takes 1
hour and 53 minutes.
$1,600 would be the minimum with a rental or two in
the country you do not
live in or a rental and a business and foreign tax
credits no move in or
out
$1,700 would be for two people with
income from two countries
$2,900 would be all of the above and you
moved in and out of the country.
This is just a guideline for US /
Canadian returns
We will still prepare Canadian only (lives in Canada, no
US connection
period) with two or three slips and no capital gains, etc. for
$200.00 up.
With a Rental for $400, two or three rentals for $550 to $700
(i.e. $150 per
rental) First year Rental - plus $250.
A Business
for $400 - Rental and business likely $550 to $700
And an American
only (lives in the US with no Canadian income or filing
period) with about
the same things in the same range with a little bit more
if there is a state
return.
Moving in or out of the country or part year earnings in the US
will ALWAYS
be $900 and up.
TDF 90-22.1 forms are $50 for the first
and $25.00 each after that when part
of a tax return.
8891 forms are
generally $50.00 to $100.00 each.
18 RRSPs would be $900.00 - (maybe
amalgamate a couple)
Capital gains *sales) are likely $50.00 for
the first and $20.00 each after
that.
Catch - up returns for the US
where we use the Canadian return as a guide
for seven years at a time will
be $150 to $500.00 per year depending upon
numbers of bank accounts, RRSP's,
existence of rental houses, self
employment, etc.
Just a
guideline not etched in stone.
This from "ask an income trusts tax
service and immigration expert" from
www.centa.com
or www.jurock.com or www.featureweb.com. David Ingram deals on
a
daily basis with expatriate tax returns with multi jurisdictional cross
and
trans border expatriate problems for the United States, Canada, Mexico,
Great Britain, United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand,
Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia,
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