Canadian on J-1 VISA -

My_question_is: Applicable to both US and Canada
Subject:        Canadian on J-1 VISA
Expert:         [email protected]
Date:           Tuesday March 20, 2007
Time:           12:20 AM -0500

QUESTION:

Hi,
I am in Seattle, WA on a J-1 visa.  My wife is here on a J-2 as well as my son.

I have been in Seattle since Sept, 2006.  I have some income from the University of Washington.  However, I occasionally work in Ontario and receive some income from Ontario.  I also receive some support from my home institution in Toronto.  My wife, is currently on maternity leave and have been receiving benefits.

I have been trying to complete my US return but there is a section that asks about foreign income.  Do I need to report my Canadian income?  My wife doesn't have any US income but because she is a Alien Resident, she still needs to fill out a US return.  Does she also need to report her Canadian maternity benefits?

Thank-you,


________________________________________________________________
 
david ingram replies:

If you are claiming the pseudo-tax benefits of a J1 visa and saying that you are a non-resident of the US and filing a 1040NR, then only the income from the U of W is taxabble on that return and your wife's maternity and your Canadian income does not figure in to the US tax return.

However, the US income DOES add on to your Canadian return and you claim a foreign tax credit for the tax, FICA and medicare yo pay to the US.  You claim it on line 431 and 433 of the Canadian return.
_________________________________________________________
david ingram wrote:
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Phone consultations are $400 for 15 minutes to 50 minutes (professional hour). Please note that GST is added if product remains in Canada or a phone consultation is in Canada.
 
This is not intended to be definitive but in general I am quoting $800 to $2,800 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

$1,600 would be for two people with income from two countries

$2,800 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 $150.00 up.
 
With a Rental for $350
 
A Business for $350 - Rental and business likely $450
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 $800 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.
 
Just a guideline not etched in stone. 
 
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