I am sure, many people went through this process in the past
but unable to find correct answer
I am Canadian citizen & currently working in US for last one year
Not it's time to file tax returns in US as well as Canada
What I know so far is, first file return in US & then while filing return in Canada, provide those details to CRA
That way I will not be paying double tax because to Tax Treaty - hope this information is correct
Currently my family (also Canadians) are still in Canada while I am supporting them from US. Also has all ties with Canada such as property, bank accounts etc..
Question for US Tax Return are -
1. Will I be considered as Resident Alien or Non-resident alien in US (note - I completed more than 183 days in US)
2. I will be filing taxes as Single or married?
3. If married, then as Married separately or Married Jointly?
4. Although I have SSN, but family still don't have ITIN (Income Tax identification number) numbers in US. Will that be a problem?
5. As per rules currently in US, ITIN application for family can only be done during tax return
6. As per IRS website, there are number of Authorized Agents in Canada fro ITIN application. Will that be helpful?
7. As per IRS, form W-7 can be completed by family member& attached with certified Canadian Passport copy. Do that W-7 form need to be identified & signed by Authorized agent in Canada? - Option 1
8. Can I just ask my family members to complete form W-7, signed & sent to me with certified Canadian Passport copy. This will be attached to my tax return in US - option 2
Can someone help me ?
Thanks
You are an ALIEN, period. But now resident, in a state, and working, please bear that in mind.
Also read PUB 501 AND PUB 519., that is for clarification.
1) Resident Alien.
2) Married, you will derive some benefits.
3) Married jointly. She is not there with you and working and so, MJ.
4) It is not needed. But see if it will be beneficial to your future.
5) Yes. Same as above.
6) There are FIVE OR SIX of them. High Priced Auditing Firms. Costs you big bucks.
7) You know that,. OPTION 1 Costs you big bucks.
8) So, take OPTION 2. The easy way out. Plus they have cross references too??!!
YOU should tell us all about it. So we can follow you there. Will you ?
FH.
BTDT.
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Quote:
Originally posted by mumdxbcan
I am sure, many people went through this process in the past
but unable to find correct answer
I am Canadian citizen & currently working in US for last one year
Not it's time to file tax returns in US as well as Canada
What I know so far is, first file return in US & then while filing return in Canada, provide those details to CRA
That way I will not be paying double tax because to Tax Treaty - hope this information is correct
Currently my family (also Canadians) are still in Canada while I am supporting them from US. Also has all ties with Canada such as property, bank accounts etc..
Question for US Tax Return are -
1. Will I be considered as Resident Alien or Non-resident alien in US (note - I completed more than 183 days in US)
2. I will be filing taxes as Single or married?
3. If married, then as Married separately or Married Jointly?
4. Although I have SSN, but family still don't have ITIN (Income Tax identification number) numbers in US. Will that be a problem?
5. As per rules currently in US, ITIN application for family can only be done during tax return
6. As per IRS website, there are number of Authorized Agents in Canada fro ITIN application. Will that be helpful?
7. As per IRS, form W-7 can be completed by family member& attached with certified Canadian Passport copy. Do that W-7 form need to be identified & signed by Authorized agent in Canada? - Option 1
8. Can I just ask my family members to complete form W-7, signed & sent to me with certified Canadian Passport copy. This will be attached to my tax return in US - option 2
Can someone help me ?
Thanks
Location: Western Hemisphere
Posted on: 20-02-16 18:35:16
Quote:
Originally posted by mumdxbcan
I am sure, many people went through this process in the past
but unable to find correct answer
I am Canadian citizen & currently working in US for last one year
Not it's time to file tax returns in US as well as Canada
What I know so far is, first file return in US & then while filing return in Canada, provide those details to CRA
That way I will not be paying double tax because to Tax Treaty - hope this information is correct
Currently my family (also Canadians) are still in Canada while I am supporting them from US. Also has all ties with Canada such as property, bank accounts etc..
Question for US Tax Return are -
1. Will I be considered as Resident Alien or Non-resident alien in US (note - I completed more than 183 days in US)
2. I will be filing taxes as Single or married?
3. If married, then as Married separately or Married Jointly?
4. Although I have SSN, but family still don't have ITIN (Income Tax identification number) numbers in US. Will that be a problem?
5. As per rules currently in US, ITIN application for family can only be done during tax return
6. As per IRS website, there are number of Authorized Agents in Canada fro ITIN application. Will that be helpful?
7. As per IRS, form W-7 can be completed by family member& attached with certified Canadian Passport copy. Do that W-7 form need to be identified & signed by Authorized agent in Canada? - Option 1
8. Can I just ask my family members to complete form W-7, signed & sent to me with certified Canadian Passport copy. This will be attached to my tax return in US - option 2
Can someone help me ?
Thanks
Based on what you have stated, you are a tax resident in both the countries - in the US based on actual residency and in Canada based on ties to Canada.
Yes, file first in the earned country (US) and use that return to file the Canadian returns.
US offers joint filing and Canada does not. Also, you have to attach your US returns to your Canadian tax returns. Therefore, if you choose to file married filing jointly, you will have to figure out the correct numbers to split them and report them accordingly in each of the Canadian returns (yours and your spouse's). As a result, it is easier to file married filing separately, so the numbers are clear and unambiguous to Canada.
But the bigger item is the dual status of you and your family (confirm this on IRS website). Dual status aliens cannot file married jointly (again, verify this on IRS site). This clause alone will clear up your situation and force you to file married filing separately.
Now to answer your questions:
1. You are not a resident alien unless you have a Green Card. If you are on a TN, H1, etc, you are a non-immigrant but a tax resident. Your family, for tax purposes, are non-resident aliens. The bigger question is whether or not your family needs to file a US return at all. If they do not have any US income, all IRS needs to know is that you are married and you are filing separately (verify on IRS website).
2. File as married as you are married. However, the dual status of you and your spouse may prevent you from claiming exemptions and deductions for your spouse (verify with IRS).
3. See above.
4. ITIN is needed only if you are filing jointly. If filing separately, first determine if they need to or not before applying for ITIN.
5. An authorized IRS agent needs to see originals or certified copies of ITIN applicants. I think your option 2 would work. But again, determine need to file before going through the trouble of ITIN. Other than that, you are correct that W7 can be filed only along with a tax return and mailed to an address that is specified in W& and not in the 1040.
So, you will file 1040 or 1040EZ while your spouse will file 1040NR (if filing is needed). The very requirement of 2 different forms will eliminate you from filing jointly.
Just as additional info, when filing and taking foreign tax credit, you are allowed to claim your US federal tax paid (actual owed, not the amount withheld and shown in W2), state tax paid, SS tax and medicare tax. You also have to minus 10% off your RSP contribution eligible amount if you have any retirement plans (401k) in US.
For exchange rate, use Bank of Canada's average annual rate that is usually available around this time as a 1 or 2 page PDF document (rates for many countries are provided and this is accepted by CRA.
Also, unless your children, if any, qualify as "a qualified child" under IRS definition, you cannot claim your children in your US returns.
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Dimple2001
Hi
I am Canadian working on TN visa since last 8 years. Please send me your detail on I'll contact you. It's little confusing to reply here as it depends upon couple of question I have. I am not a lawyer. Just Canadian.
Thanks
Pradip Patel
Hi Pradip Again.
Canadian desi has eliminated my email. please send me detail on pradippatelca@gmail.com
