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Sent: Monday, December 01, 2003 12:46 AM
Subject: INFORMATION PLEASE
Hi David,
I very much enjoy read your questions & answers & have told others about your site. I am writing for a friend who does not have a personal computer. I am just going to list the information & maybe you can give answers to the questions below. I hope I am including all of the information/facts so you can answer the questions correctly at the bottom.
FACTS & INFORMATION:
54 year old female.
US citizen with a social security number.
Moved to Canada 20+ years ago & is a Landed Immigrant (Permanent Resident).
Still lives in Canada.
Does not work at this time & is supported by her husband who is a Canadian Citizen.
They purchased a mobile home in Florida & it is on a rental site.
She plans to go to Florida for part of the winter (less than 182 days). He only goes to Florida for 2 or less weeks a year.
She has filed/registered her RRSPs with the US Treasury Dept. & Filed US Income Tax on the money she made in Canada for the year of 2002 only. As she did not know she had to file income tax on the money she made in Canada. (She made an average of $10,000. to $15,000. Canadian a year when she did work, in Canada.
QUESTIONS:
1. Can she work in Florida at a small part time job while she is there as long as taxes, social security, etc. is take out of her pay by the employer?
2. Would she file income tax there 1040 form as married filing single &/or also file a 5445 US Tax Form from Canada & include the money she made while she was in Florida?
3. Is a Social Security Number always valid that a US born citizen receives?
4. From reading Q & A from you, she thinks that she may not get the $72,000. USD (or there about) or any deductions from each year of the taxes she didn't file, if she were to file them now, after almost 18 years. Is this true?
5. Since she does not work & really has no money to pay hundreds of thousands of dollars, the IRS would probably charge her, ........should she just go directly to the IRS so they can put her in jail for not paying? Since her husband is not a US citizen can he be made to pay these back charges? Any advice on what she should do?
Any help that you can give her about any of this & rather it is worth it, for her to work or not work while, she is in the USA, & why or why not would be very much appreciated.
Thank you.
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david ingram replies:
1. Yep - she can work in Florida, New York, Illinois or any of the other 47 states whenever she wants to. She is a citizen of the United States of Amercia.
2. She would file a US 1040 income tax return and a Canadian Income tax return. Both would report her world income. She would pay tax to Canada first on the Canadian Income and the US first on the Florida Income. Then she would add the respective incomes to the other tax return and claim a foreign tax credit for the tax paid to the US on her Canadian Return. She would exempt up to $80,000 US on her US return for the income earned in Canada. The $80,000 US figure is pro-rated by the number of days you are in Canada.
3. Her US SSN is still valid.
4. If she comes forward voluntarily, she will get the exemption. We do dozens of them. She should do 1997, 98, 99, 200 and 2001 back returns.
5. He will not have to pay her tax returns. However, from what you have described, she will not have a bill if she gets her returns done. AND AND AND, she should do them if she is intending to be working in the USA.
Is this a situation where she is a part owner of her husband's Canadian Company? If so that is a serious matter and involves other forms where the Canadian company's P & L has to be reported to the IRS on form 5471.
I used to have fourteen offices in Florida.
We would be happy to do them for her. She should send us copies of the 1997 to 2002 Canadian returns and a copoy of the 2002 she prepard for the US. Contact numbers and addresses follow:
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
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