QUESTION:
I have called the the IRS several times and have gotten differing answers on
what to do. I assume I file the 1040 and not the 1040NR, but how do I file?
My husband is a Canadian citizen and works in Canada. Do I file married
filing jointly or filing seperately? Someone told me I should be filing
jointly becasue I can use him as an exemption and get more money back, but
how do I do that without disclosing his income or do I have to disclose his
income. WE have an accountant on the Canadian side filing for us
competently but I have called 4 different accountants here in Buffalo new
York and none of them have a definitive answer for me on what to do and the
IRS is just baffled that I live in a foreign country and still work in the
US.
Thank you for your help
---------------------------------------------
david ingram replies:
As a US citizen you ALWAYS file a 1040.
You have the right to file a joint return which will lower your US tax.
However, you are also required to file a Canadian T1 return and the lower US
tax will result in a Higher Canadian tax because your foreign tax credit
will be lower.
The same person should do your Canadian and US returns at the same time to
maximize your tax situation.
Your situation is the typical return in our office.
Phone consultations are $400 for 15 minutes to 50 minutes (professional
hour).
This is not intended to be definitive but in general I am quoting $800 to
$2,000 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two interest slips and you
lived in one country only - no self employment or rentals or capital gains -
you did not move into or out of the country in this year.
$1,000 would be the same with one rental
$1,200 would be the same with one business no rental
$1,200 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.
$1,500 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
$2,000 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 a three or four slips and no capital gains, etc. for $100 or
$125.00
With a Rental for $300
A Business for $300 - Rental and business likely $400
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.
.TDF 90-22.1 forms are $25 for the first and $10.00 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.
Just a guideline not etched in stone.
=============================
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 10 PM 7 days a week Vancouver (LA) time -
(please do not fax or phone outside of those hours as this is a home office)
email to taxman at centa.com <mailto:taxman at centa.com>
www.centa.com <http://www.centa.com/> www.david-ingram.com
<http://www.david-ingram.com/>
Disclaimer: This question has been answered without detailed information or
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