First year TN from Ontario to New York City -

My_question_is: Applicable to both US andCanada
Subject:        First yearTN
Expert:         [email protected]
Date:          Tuesday February 12,2008
Time:           08:32PM -0000

QUESTION:

Hi,

I'm a first year TN Holdercurrently residing in New York City. I came to NYC in March 2007, and I had ajob before that in Mississauga Ontario.

Now when it comes to my taxes,I'm a bit confused of what I should do. I know I need to file taxes on both sideof the border. But I'm not sure if it's going to be very complicated as I haveincome from NY and Ontario during the same year. I was told that I can use the1040EZ form to do my US taxes, but by reading online helps, seems like I have toreport my Ontario earning in the US as well.

Can you please let me knowif this is a complicated process? Can I file taxes on my own? Or would yousuggest professional help? In this case, how much will you charge for filingbothsides?

Thanks!

-------------------------------------------------------
davidingram replies: 

It is a complicated process.  We charge from$900 to $3,000 Cdn for US / Canadian returns.  There is a more in depthdescription following below.

This older situation will help -  Youwill also have to file a New York IT 203 part year return and maybe a City ofNew York or a City of Yonkers return depending upon where you live.

The1040EZX is not the return to file.  You will not report the Ontario incomeif you file a Dual Status Return but will if you file a full year 1040 and claimforeign tax credits.

[email protected]: Please see bottom of message if you wish to unsubscribe.

My_question_is: Applicable to both US andCanada
Subject:        First yearTN
Expert:         [email protected]
Date:          Tuesday February 12,2008
Time:           08:32PM -0000

QUESTION:

Hi,

I'm a first year TN Holdercurrently residing in New York City. I came to NYC in March 2007, and I had ajob before that in Mississauga Ontario.

Now when it comes to my taxes,I'm a bit confused of what I should do. I know I need to file taxes on both sideof the border. But I'm not sure if it's going to be very complicated as I haveincome from NY and Ontario during the same year. I was told that I can use the1040EZ form to do my US taxes, but by reading online helps, seems like I have toreport my Ontario earning in the US as well.

Can you please let me knowif this is a complicated process? Can I file taxes on my own? Or would yousuggest professional help? In this case, how much will you charge for filingbothsides?

Thanks!

-------------------------------------------------------
davidingram replies: 

It is a complicated process.  We charge from$900 to $3,000 Cdn for US / Canadian returns.  There is a more in depthdescription following below.

This older situation will help -  Youwill also have to file a New York IT 203 part year return and maybe a City ofNew York or a City of Yonkers return depending upon where you live.

The1040EZX is not the return to file.  You will not report the Ontario incomeif you file a Dual Status Return but will if you file a full year 1040 and claimforeign tax credits.

[email protected]: Please see bottom of message if you wish to unsubscribe.------------------------------------------



QUESTION: Hi David,I am Canadian citizen, worked in Canada for the first 5 months of 2006. then moved to US and worked then for the rest of 2006. I have income from Canada employer, canadian bank and US employer. I filed tax return on my US income to IRS already. I haven't done canadian tax return yet. I had thought I only need to file canadian tax return on my canadian income. But it seems both CRA and IRS requested to report my world income to both. I am confused. What should I do to file the tax return to both?More specially, I received NR4 slip from CIBC bank. I could not find where to enter this form when I used Ufile.ca.How can I enter US W2 form into any Canadian tax form?How can I enter T4 slip into US tax return form?thanks a lot!
_______________________________________________________________
davidingram replies:

An NR4 does not go on the Canadian return.  It goeson Schedules B and 1116 of the US return

The T4 does not go on the USreturn unless you are filing as a year round resident as in 2 below.

I amtoo busy to come up with a new answer but this older one will give you anidea.


QUESTION: Hi David,I really need your help in filling U.S tax and I am getting mixed messages which forms to file. 
I am a Canadian Citizen in U.S on TN visa for more than a year. 
I have RRSP in canada over 10,000 put in fixed bond and saving account in a bank. 
What do I need to file here and what forms do I need to fill. 
Do I still have to file tax in Canada for canadian earning? Please help.
____________________________________________________
david ingram replies;

You need to file a departing Canada tax return and fileT1161 if you left more things than your RRSP behind.  The Canadian returnwill only include Canadian earnings although if you had a Home Buyers Plan, itis all due and taxable on the departing Canada return unless you have paid itback.

For the US, you have two choices:

1.   File a1040NR dual status statement and a Dual Status 1040 Income Tax return with nostandard deduction

or

2.   File a full 1040 whichincludes your Canadian income and gives you a full standard deduction and theright to file a joint return if married.  This is usually the best if youleft Canada early in the year as you did.

If you can't figure it out,file an extension  form 4868 (find it at http://www.irs.gov/pub/irs-pdf/f4868.pdf)

and then send the information to us at the address in blue below tocomplete for you.
_____________________________
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I'm a 27 year old Canadian currently living in the United States on an H1B. Before leaving Canada I closed all major credit cards, bank accounts (except for one which still has an outstanding balance which will be paid off this year), and brought all personal belongings with me. The only thing I've left in Canada which is giving me a tough time is ~60K  in RRSP's. I've determined as per IRS publication 519 I am a resident alien for tax purposes as per the substantial presence test. I've been considering doing the filing myself, but I'm confused as to whether or not I should be declaring my RRSP's and if so, what are the implications? Especially this year since I've lost over 10%+ of their value.

I would like to use your services, but I would like some degree of confidence that by paying over 1K (moving year) that I will be really saving that much. I can understand someone who has complex tax situations with properties, receiving retirement funds, capital gains/losts, etc. My tax situation is pretty straight forward (I think) and aside from filing forms 1040, 8891 (maybe) in the US with some Canadian tax credits and in Canada file a T1 tax return (departing), I'm having a tough time seeing the value of your services. I'm hoping you can convince me otherwise.

Any other year, I would only except to file in the US, but this one I don't want to take a chance on.

Thanks for your help!

-------------------------------------------
david ingramreplies;

I went to see my dentist Ed Clark the other day and $160 dollarslater was told 'no cavities'.  I was very happy.  Last time I saw himbecause a cap had split off the enamel - this is the truth - I ended up with a$16,000+  dental bill because he discovered a very hidden abcess and thenpointe out all my ground down teeth.

Although I like the appearance of my$16,000+ teeth and appreciate the fact that the abcess was fixed, etc. I washappier hearing 'nothing wrong but floss more' than I was with the litany ofstuff wrong after not being there for a few years.

I have no idea if ourservice would be worth it to you.

It is an intersting question.  Youhave mentioned the form 8891 which is a new form.  Not filling it out canresult in a penlty of 35% of the value of your RRSP PLUS 5% for each year you donot report it.  Being in the US on an H1B requires the filing of form 8891to report (and exempt) the internal earnings of your RRSP.  However, if youare in California, the 8891 does NOT exempt the internal earnings on your RRSPand the California Franchise Board taxes them requiring an adjustment on form CAor CA(NR) with the 540 or 540NR.

You do not mention form TDF90-22.1.  I was told by a representative from Treasury on June 20,2007,  that their intention is to levy a minimum $10,000 fine for failureto file this form.  I had a 105 year old client pay a $10,000 fine forfailure to file it and over 1,000 clients of a Vancouver financial consultant'Jerome Schneider' were fined because he told them not to file the forms. Jerome Schneider was sent to jail himself and fined $100,000 for telling themnot to file the forms.  That was a plea bargain where he agreed to testifyagainst all his clients and a couple of lawyers and accountants he had workedwith.  Without the plea bargain, his penalties were astronomical becausethere were over 1,000 charges possible. 

If you want more info onSchneider, you can read the story at 
http://www.quatloos.com/schneider_witmeyer_guilty.htm
Justremember that this first year, your US 1040 either needs to include your Canadian income (before you moved to the US)  and a '2350 and 2555' (toexempt the Canadian Income) or an 1116 (to claim a foreign tax credit)  ORbe filed as a Dual Status preparer - see line 35b top of page 2 of the 1040 andmark the top of Page One of the return as a DUAL STATUS RETURN.  In thissituation, you also have to file a 1040NR with DUAL STATUS STATEMENT on the topof Page one of the 1040NR.  This 1040NR would be reporting any US sourcemoney you received BEFORE moving to the USA.

one more thig for you oranyone else reading this.  If you have 'ANY' foreign accounts (Canadian,French, Spanish, Japanese, Australian or any other of the 265 or so countries inthe world) you MUST fill in US schedule B and answer the two questions at thebottom.  Your RRSP is a foreign trust and form 8891 replaces form 3520 foran RRSP.

Good Luck

-------------------------------
David Ingram wrote:

On January 29, 2008, David Ingram wrote:

It is very unlikely that blind or unexpected email to mewill be answered.  I receive anywhere from 100 to 700  unsolicitedemails a day and usually answer anywhere from 2 to 20 if they are not fromexisting clients.  Existing clients are advised to put their 'name and PAYING CUSTOMER' in the subject line and getanswered first.  I also refuse to be a slave to email and do not look at itevery day and have never ever looked at it when I am out of town. 
e bankruptcy expert  USCanada Canadian American  Mexican Income Tax  service andhelp
However, I regularly search for the words"PAYING CUSTOMER" andalways answer them first if they did not get spammed out. For the last twoweeks, I have just found out that my own email notes to myself have been spammedout 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 haveactually looked at and deleted and I have actually answered 1234 email questionsfor clients and strangers without sending a bill.  I have also put aside847 messages that I am maybe going to try and answer because they lookinteresting. -ebankruptcy expert  US Canada Canadian American  Mexican Income Taxservice and  help
Therefore, if an email is not answered in 24 to 48 hours,it is likely lost in space.  You can try andresend it but if important AND YOU TRULY WANT OR NEED AN ANSWER from 'me', youwill have to phone to make an appointment.  Gillian Bryan generally acceptsappointment requests for me between 10:30 AM and 4:00 PM Monday to FridayVANCOUVER (Seattle, Portland, Los Angeles) time at (604) 980-0321.  david ingramexpert  US Canada Canadian American  Mexican Income Tax service and help.
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Disclaimer:  This question has been answered without detailedinformation or consultation and is to be regarded only as generalcomment.   Nothing in this message is or should be construed as advicein any particular circumstances. No contract exists between the reader and theauthor and any and all non-contractual duties are expressly denied. Allreaders should obtain formal advice from a competent andappropriately qualified legal practitioner or tax specialistfor expert help, assistance, preparation,or consultation  in connection with personal orbusiness affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."e bankruptcy expert  USCanada Canadian American  Mexican Income Tax  service andhelp.
David Ingram gives expert incometax & immigration help to non-resident Americans & Canadians fromNew York to California to Mexico  family,estate, income trust trusts Cross border, dual citizen - out ofcountry investments are all handled with competence &authority.
 
Phoneconsultations are $450 for 15 minutes to 50 minutes (professional hour). Pleasenote that GST is added if product remains in Canada or is to be returned toCanada or a phone consultation is in Canada. ($472.50 with GST if inCanada)expert  US Canada Canadian American  Mexican IncomeTax  service and help.
This is not intended to be definitive but ingeneral I am quoting $900 to $3,000 for a dual country taxreturn.
$900 would be one T4 slip one W2 slip one or twointerest slips and you lived in one country only (but were filing bothcountries) - no self employment or rentals or capital gains - you did not moveinto 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 norental
 
$1,300 would be the minimum with a move in or outof the country. These are complicated because of the back and forth foreign taxcredits. - The IRS says a foreign tax credit takes 1 hour and 53minutes.
 
$1,600 would be the minimum with a rental or two inthe country you do not live in or a rental and a business and foreign taxcredits  no move in or out

$1,700 would be for two people with income from twocountries

$3,000 would be all of the above and you moved inand out of the country.
 
This is just a guideline for US / Canadianreturns
 
We will still prepare Canadian only (lives inCanada, no US connection period) with two or three slips and no capitalgains, 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 noCanadian income or filing period) with about the same things in the same rangewith a little bit more if there is a state return.
 
Moving in or out of the country or part yearearnings in the US will ALWAYS be $900 and up.
 
TDF 90-22.1 forms are $50 for the first and $25.00each after that when part of a tax return.
 
8891 forms are generally $50.00 to $100.00each.
 
18 RRSPs would be $900.00 - (maybe amalgamate acouple)
 
Capital gains *sales)  are likely $50.00 forthe first and $20.00 each after that.

Catch - up returns for the US where we use theCanadian 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 ofrental houses, self employment, etc. Note that these returns tend to beinformational rather than taxable.  In fact, if there are childreninvolved, we usually get refunds of $1,000 per child per year for 3 years. We have done several catch-ups where the client has recieved as much as $6,000back for an $1,800 bill and one recently with 6 children is resulting in over$12,000 refund. 

This is a guideline not etchedin stone.  If you do your own TDF-90 forms, itis to your advantage. However, if we put them in the first year, the computercarries them forward beautifully.
 
This from "ask an income trusts tax service and immigrationexpert" from www.centa.com or www.jurock.com or www.featureweb.com. David Ingram deals on a dailybasis with expatriate tax returns with multi jurisdictional cross andtrans 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 taxreturns, etc. Rockwall, Dallas, San Antonio Houston, Denmark, Finland,Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax Immigration Wizard AntarcticaRwanda Guru  Consultant Specialist Section 216(4) 216(1) NR6NR-6 NR 6 Non-Resident Real Estate tax specialist expertpreparer expatriate anti money laundering money seasoningFINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross bordertransactions Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US IncomeTax Convention. Advice on bankruptcy  e bankruptcy expert  US Canada Canadian American Mexican Income Tax service and help.

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