How are you? I'm a new comer to your discussion forum. If it's
ok, I'd prefer not to publish our communications to the mailing
list, i.e. respond to this email only.
Here's some key facts in my situation:
0. I'm a Canadian citizen
1. Jan.01 -  June  14 , 2006, I was studying in  Indonesia and
received no income
2.  June 15 -  October 15, 2006, I have been working for a
Canadian employer in  Nova Scotia, Canada and receiving bi-weekly
pays as full-time employee
3. On  Oct.11.2006, I got married in  New Brunswick, Canada
4. starting  Dec 1, 2006, I'll work for an US employer in  New
York, USA under TN status (NAFTA) as full-time W2 employee
5. I've contributed to my GRSP at each pay period since I joined
the Canadian company
 6. in my past years CRA assessment, I carry over a large amount
of tuition expenses (so  does my wife - she's an Indonesian
citizen working in  New Brunswick with a valid Work Permit)
 7. we do NOT own any property and we do NOT have any
Here're a couple of general questions:
1. do I have a choice of filing taxes either in Canada or in USA?
If yes, where can I receive more benifits?
2. do I have a choice of filing taxes either separater from my
wife or together as a family? If yes, which one is better for us
as a whole?
Highly appreciate your response and happy holiday season.
Best regards,
- --------------------------------------------------------
david ingram replies
1.    You will each file a Canadian Return for the year 2005.  As
you were a student in China with no income, I would file the
whole year and claim the full year exemptions.  Since your wife
is remaining in Canada and you seem to be intending to return to
Canada at the end of the contract, your US income will be taxable
on the Canadian return as well.  You will use any federal tax,
New York  state tax, social security and Medicare paid on the Nov
to Dec 31st US returns as a foreign ta x  credit on your Canadian
return.  If you were leaving Canada with the intention of getting
an H! Visa and having your wife join you, I would say that you
file a departing Canada return and NOT report the US income on
the Canadian return.
2.    In the US, you will be filing a 1040NR or a "dual status"
1040 return and a 1040NR dual
status "statement".  In some cases, such as your wife is about to
join you, I would file a straight US 1040 joint return and report
yours and your wife's Canadian income on the US return and claim
foreign tax credits for the taxes paid to Canada on US form 1116.
3.    As a matter of interest, if you had earned over $2,400 in
Indonesia, as a student teacher or something, you would have had
to pay Indonesia tax under Article IV of the Canada Indonesia
Income Tax Convention.
I will use this in the email list but change enough items that
you are not identifiable.  It is the only justification I have
for answering anything free.
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
$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
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 $125.00 up.
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.
Moving in or out of the country or part year earnings in the US
will ALWAYS be $400 and up.
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 couople)
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
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
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 If you forward this
message, this disclaimer must be included."
Be ALERT,  the world needs more "lerts"
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assistance expert preparation & immigration consultant david
ingram, experts on rentals mutual funds RRSP RESP IRA 401(K) &
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This from "ask an income tax and immigration expert" from or or David
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