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QUESTION:
My husband and I are Candian citizens since 1976. We sold everything and
left Canada in March 1996. We had no plans to return to Canada. We first
moved to UK and later we moved to Australia where I worked, my husband did
not work. In May 2001 we moved to New Hampshire, US. I was on a H1B, my
husband on a H4 (Non-working) visa. NH has no state income tax. I filed a
tax return in US in 2001 and 2002. My employment in US terminated in April
2003 and we decided to return to Canada, arriving in BC on May 21st 2003.
We have now purchased a house in BC and intend to remain here. I have
found a small job, earnings in Canada will be approx $2,000 for 2003. My
husband has no income in 2003. Earnings in US for period Jan-Apr was
approx US$35,000. Investment income for 2003 will be approx CAN$10,000,
all earned in Canada.
Question -
1. Do I need to file a US return
2. - if so does it only cover the months Jan-May when I was in US or does it need to cover the whole year?
.
3. Similarly what do I need to claim on my Canadian return, just the period from May to Dec or the whole year?
Thanks for your assistance - I found your web site extremely informative.
MXXXXXXXXXXXXX
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david ingram replies:
What an interesting set of facts. I am pleased to say that it is a regular type of return in our office. It is not unusaul to have someone who has worked in Australia, New Zealand and Canada in the same year. One of my favourite clients works in New Zealand, the United Staes and Malaysia every year and comes to North Vancouver for three months a year because his wife is in North Vancovuer and that is where he "lives". They are more unusual. We likely prepare 400 returns a year for people in your position.
Answer to your questions:
1. Yes and you have a choice.
2. The largest refund or the least tax will be paid if we report your world income from Jan to Dec including Canada unless there is a large amount of investment income from a country other than the US.
Depending on your income, we might make you a dual resident and only.report Jan > June. If so, you do not get the standard deduction and have to itemize which would NOT likely be to your benefit.
3. Your Canadian return would only include your earnings in Canada and any investment income you received after May 23, 2003.
Your personal exemption amounts will be pre rated for the days you were actually in Canada.
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 & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration 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, South Africa, Thailand, Indonesia, Egypt, Antarctica, 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.
Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico,New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon. Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming, British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec City, New Brunswick, Prince Edward Island, Nova Scotia, Newfoundland, Yukon and Northwest and Nunavit Territories, Mount Vernon, Eumenclaw, Coos Bay and Dallas Taxman and Tax Guru 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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