<> Canada income tax.....

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Dear David Ingram:
I was researching information on US income tax laws. I have come across your web-site. I appreciate your help ith my question.
I have lived in the USA all of my life until 2002.
During 2003, it will be my first full year living now
in Canada. 
Please, I have been having trouble with so
many rumours. Am I able to file an income tax, or as an American citizen still - entitled to or able to
receive a refund for the 2003 tax year. I have been
told that I can claim and receive a full exemption
refund. Please what are my rights and am I able to do this?
               Sincerely MXXXXXXXX
______________________________________________________________________ david ingram replies:
To see the rules for an American Citizen living in Canada, goto www.centa.comn and read [US/CANADA Taxation]. Also, go to newsletters and read the October, 1995 newsletter. It will explain the basics.
While living in Canada, you must continue to file a US income tax return to report your WORLD INCOME including interest, dividends, capital gains, rents, bonuses, stock options, business income, royalties and, of course, salaries.
Salaries and bonuses and business income can be exempted from US income tax up to $80,000 if you have established a bone fide residence in Canada (or France, or Germany, or Saudi Arabia, or Mexico, or Australia, or Austria,  etc.) or can show that you have been away fromthe US for 330 out of 365 days.  (always choose the Bone fide residence, if there is a choice).Use US Form 2555 for this.
Foreign tax credits can then be claimed on the US tax return for the taxes paid to Canada on interest (10%), dividends (15%), royalties (15%), rents, capital gains, and wages over $80,000 US, etc.  Foreign tax credits are claimed on US form 1116.
I think that your question about a full exemption refund is referring to the $80,000 exemption.  That exemption means you do not pay any US incoem tax but you do owe Canada income tax.
I would be glad to prepare those first returns for you by mail, fax, email or courier.  
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321 
New email to [email protected]
www.centa.com www.david-ingram.com
Disclaimer:  This question has been answered without detailed information or consultation and is to be regarded only as general comment.   Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
Be ALERT,  the world needs more "lerts"
 
This from "ask an income tax and immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems  for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
  Your name has been added to our email list because of an enquiry we have received,  we may not answer your question but 
another similar question will be as we lump them.
You may find more answers at www.centa.com
David Ingram of the CEN-TA REALTY  Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
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