Posted on: 05-04-05 02:56:10
Hi friends,
I left my job in US and moved from US to Canada in May 2004 because I became a permanent resident 
of Canada. I stayed home for about 2 months before I started another job in Canada. Our first baby was born during those first 2 months of stay in Canada. 
Now, my questions 
are on three aspects of this situation:
1] Moving Expense: 
We moved out of US when I did not have a confirmed job in Canada. But I started my current job in Canada within 2 months of the move. Can I deduct the Moving expenses from my 2004 US Tax return?
2] Dependant Child: 
My baby was born just after we moved to Canada - hence a Canadian citizen. For US tax purpose, we can claim a 'Canadian Residant ' as a dependant according to (my interpretation of )the instructions. I am not very sure of this - Can I claim my baby as a dependent for US tax purposes for 2004?
3] US & Canadian Taxes:
Any suggestions on self preparation softwares that can do US & Canadian taxes at the same time? Can you recommend any professional doing taxes for US & Canada?
Please forward resources 
for more strategic information on doing combined US & Canadian taxes.
Thanks for your help,
Hummer
Hummer --
Quote:I don't think so.
Orginally posted by HUMVEE
1] Moving Expense:
You cannot claim expenses for moving to Canada to become a PR.
Quote:I don't think so - when you left the US, you ceased to be a US resident and became the permenent resident of another country (Canada).
2] Dependant Child:
Just as the US IRS doesn't have any claim on your Canadian income, you cannot claim your Canadian-born child as a dependent in the US.
Also, your child won't have a US social security number either.
If you were a GC holder or a USC, then you may have been able to claim a deduction for that.
Quote:I did mine separately.
3] US & Canadian Taxes:
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Dear Pratick,
1] Moving Expense: Thanks, understood.
2] Dependant Child: Thanks, understood.
3] Filing both tax returns separately:
Could you please give some recommendations on professional help (people who have experience in filing both sides taxes at the same time) or using softwares to e-file?
Also, did you come across any tax saving tricks that can be used here?
I truely appreciate your insight in this matter.
Thanks,
Hummer.
badhumvee@yahoo.com
The only tax savings that I have found are RRSP for cdn income and they start from the 2 nd year of filing taxes.
Cross border taxes can be filed at
http://www.centa.com" rel="nofollow">LINK
http://www.serbinski.com" rel="nofollow">LINK
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We will find a way or we will make one
Quote:I used Turbo Tax for US taxes and QuickTax for Canadian taxes.
Orginally posted by HUMVEE
3] Filing both tax returns separately:
Could you please give some recommendations on professional help (people who have experience in filing both sides taxes at the same time) or using softwares to e-file?
If your tax situation is more complex than average, then you can try the tax firms like H&R Block, etc.
Quote:I assume this is your first tax return in Canada, so no there aren't that many avenues for tax deductions.
Also, did you come across any tax saving tricks that can be used here?
RRSP is the only real big tax deduction you can take, but you are not eligible for it the first year.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
H&R Block is not good for cross border taxation as per my experience.
They had no idea about Canada - US treaty , foreign tax credit , form 8891 and rev 2002.03 for filing with tax returns
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We will find a way or we will make one
