Resident of Canada working in the US - david ingram expert cross border non-resident income tax help and preparation by five tax


THIS IS ALSO THE KIND OF QUESTION WE WILL BE ANSWERING TONIGHT AT 7 PM on www.david-ingram.com when Dan Walkow from www.seabankcapital.com is my guest after former Premier of BC, Bill Vander Zalm talks about his new book FOR THE PEOPLE at 6 PM.
 
Dan is a specialist in cross border RRSP, IRA, 401 (K) and regular stock market accounts.  Bill Vander Zalm is simply the most charming Premier, British Columbia ever had.
 
The phone in number is 1-866-980-0499 for all of the US and Canada.  If you are phoning from somewhere else call 604-980-0321.  You have to watch with Internet Explorer, Macs and Firefox, etc, do not work and of course, that is 6 and 7 PM Vancouver BC, Canada Time. 
 
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AAAA AAAAAA  wrote:
Hi,

I am a resident of Canada and working in the US. Do you provide services to do Taxes?

Regards,
AAAA AAAAAA

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david ingram replies:

that is what I do.

This older question may or may not fit your situation but will give you food for thought.



Hello,
 
I'm a US citizen and live in Canada (permanent resident).  This past year I took a job working in Point Roberts WA.  I'm married to a Cdn citizen.  If my status is married, filing separately, do I have to include my husband's Canadian income on my US tax return?  Are there separate tax forms for US citizens living outside of the US?  Should I use my US address to file?  Or (since I live in Canada) should I be using my Canadian address?
 
Any information you can provide will be greatly appreciated!
 
Thanks,
-------------------------------------------------------------
david ingram replies:

You will file your US tax return on a US 1040 as MFS OR, if you have children, you can file as Head of Household.  You do not need to include his income or take it into account in any manner.  in fact, if none of it comes from the USA, you can claim him as a dependent even if he earned $1,000,000.

Then, after calculating the tax actually paid (not what was deducted), you will report the US income again on a Canadian T1 return and claim the total of tax paid + Social Security (FICA) + Medicare as a foreign tax credit on  line 431 of Canadian Schedule T2209 and put the result on line 405  of  Schedule 1 of your T1.  If there is anything left over (there will be usually), the excess goes on line 3 of form T2036 and the result on line 49 of your Provincial form 428 (a bit different for the province of Quebec).

Use your Canadian Address, that's where you live.

This older question says the same thing but the line numbers and places have changed a little since the 2006 return. (might have even been asked by your husband).
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.
 QUESTION:
 
Good day,
 
You have undoubtedly been asked this question on numerous occasions.  My wife works in the United States, but we reside in Canada.  She recently has become a permanent resident in Canada, but has yet to receive a SIN.  We know she must file a tax return in Canada (under the deemed resident statute) however since she does not earn an income in Canada, and her salary is in US$ what amounts do we fill on her Canadian income return??  Can my salary (which is less than hers) somehow be applied on her return as well??  Does she as well get a 2 month extension on her US return date in order to file her Canadian return??
 
Thank you for your time and consideration.
 
Best regards,
 ____________________________________________________
 
> david ingram replies:
>
> If you are commuting to work in the USA, you must file a US tax return first and then refile the same amounts in Canada.  You would convert the US earnings to Canadian dollars and put the amount on lines 104 (not 130) and 433 (schedule 1) of your Canadian T1 return.  You then claim the Federal tax, State tax, FICA (social security) and Medicare  paid to the US as a foreign tax credit on line 431 of your Canadian return.  If there is anything left over you can apply it as a provincial foreign tax credit on line 48 of provincial form 428 after filling in form T2036.  (If you are in Quebec, You would use Quebec form TP-772-V to calculate and put the credit on line 409 of your TP1.
>
> She should file US form 4868 to extend her time to file the US return which is due at midnight April 17th otherwise and, of course, her Canadian in due April 30th.
>
> You know where we are if you need help.
>
> She will get a little more by going to
www.centa.com and reading the US/Canada Taxation section in the second box down on the right hand side.
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On February 11, 2008, 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. 
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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 wrote 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 48 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.
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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 for expert help, assistance, preparation, or consultation  in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included." e bankruptcy expert  US Canada Canadian American  Mexican Income Tax  service and help.
David Ingram gives expert income tax service & immigration help to non-resident 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 & authority.
 
Phone consultations are $450 for 15 minutes to 50 minutes (professional hour). Please note that GST is added if product remains in Canada or is to be returned to Canada or a phone consultation is in Canada. ($472.50 with GST if in Canada) expert  US Canada Canadian American  Mexican Income Tax  service and help.
This is not intended to be definitive but in general I am quoting $900 to $3,000 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.
 
$1,200 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

$3,000 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 from $150 to $600.00 per year depending upon numbers of bank accounts, RRSP's, existence of rental houses, self employment, etc. Note that these returns tend to be informational rather than taxable.  In fact, if there are children involved, we usually get refunds of $1,000 per child per year for 3 years.  We have done several catch-ups where the client has received as much as $6,000 back for an $1,800 bill and one recently with 6 children is resulting in over $12,000 refund. 

This is a guideline not etched in stone.  If you do your own TDF-90 forms, it is to your advantage. However, if we put them in the first year, the computer carries them forward beautifully.
 
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, 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, and any of the 43 states with state tax returns, etc. Rockwall, Dallas, San Antonio Houston, Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax  Immigration Wizard Antarctica Rwanda Guru  Consultant Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist expert preparer expatriate anti money laundering money seasoning FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border transactions Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US Income Tax Convention. Advice on bankruptcy  e bankruptcy expert  US Canada Canadian American  Mexican Income Tax service and help .

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