booooooooks

你们可以在加拿大claim moving expense，用T1－M，原文如下：
You can claim eligible expenses for a move from Canada,or between two locations outside Canada if you are a factual or deemed resident and you moved from the place where you ordinarily resided to live in another place where you ordinarily reside.

加拿大能deduct的expense比美国要多得多，你自己好好算算吧。


另外，你加拿大的income earned druing non-resident period，不用报给美国。也就是说你的收入如果是去美国之前挣的，就不用报给美国。只报去美国之后的那部分。因为first year choice只是part-year resident。

yvan_wa

If your dependent doesn't have an SSN, you can attach a W-7 form to claim a dependent.

If file jointly as residents, you will get standard deduction of $5000, and exemption $3200. roughly the credit of US$8200 for the husband. If taxable income in canada (scholarship minus alowable deductions) (employment income is excluded using form 2555) is more than that, I think it's better file saparately.

if you didn't have tax withheld in canada, you don't have foreign tax credit (see form 1116)

any other thought?

Post by BL.TAX
Based on your data, I don't think you will pay any tax in Canada (except Quebec drug plan premium). Therefore, you have no FTC availabe for your US tax return. So, don't bother with your foreign tax credit any more.

Your wife might need a little FTC to reduce her Canadian tax. But, if your schoolarship is totally deductible in Quebec, she will need less.

Up to now, it may be a good strategy to reduce US tax as less as possible because US tax probably is her final tax. I guess that is why you would like to file joint return in US. But, you might not help too much by jointly filing because you wil include your incoem around 15,000 us$(if your schoolarship is not qualified to be excluded from Gross Income) . that will increase your tax payable by 300$= (15000-4000-5000-3200)*15%. 4000 for tuintion fee qualified only for jointly filing, 5000 for standard deduction (you have to make the full year election to be eligible), 3200 for exemption. your wife's tax will be reduced by 350$ because of lower rate for jointly filing. (25760-3049-5000-3200-7300)*(15%-10%)=350. You probably benefit for 50 bucks ( be aware what I calculated is just rough work, just to help you reasoning, do not take it as true)

other points for you:
- Check if your schoolarship is eligible to be excluded
- Be sure you and your kids has the SSN of US, otherwise, your claim for expemtion may be denied.
- Doube check full year election

Good luck!!

woandlion

Hi guys, thanks for your helpful input.

To BL.TAX:
In your posts, you mentioned "I can't see too much benefits for you to file US return jointly. If you pay a little of tax in Canada, your FTC will be a little, even less, acoordingly. Why do you like to report your income in US?"


I am a little confused. In fact, you discussed if we should file as resident or non-resident (not jointly or separately), right?
(15000-4000-5000-3200)*15%=420, not 300
In (25760-3049-5000-3200-7300)*(15%-10%)=350, what are 7300 and 10%?

Another question:
Why did nobody mention child tax credit? If file as resident, we can claim child tax crdit, which will reduce $1000 directly from our tax, right?

To booooooooks:
You mentioned "你加拿大的income earned druing non-resident period，不用报给美国。也就是说你的收入如果是去美国之前挣的，就不用报给美国。只报去美国之后的那部分。因为first year choice只是part-year resident。"

Where can I find 原文 of the above?
If so, I guess I can't get the total amount of the deduction $5000 and exemption $3200. Probably, only part of them.

booooooooks

The following is the original document, which on Page 9 of Pulication 519. You'd better to look at the examples either.


If you make the first-year choice, your residency starting date for 2005 is the first day of the earliest 31-day period (described in (1) above) that you use to qualify for the choice. You are treated as a U.S. resident for the rest of the year. If you are present for more than one 31-day period and you satisfy condition (2) above for each of those periods, your residency starting date is the first day of the first 31-day period. If you are present for more than one 31-day period but you satisfy condition (2) above only for a later 31-day period, your residency starting date is the first day of the later 31-day period.


However, if you want to make a choice that nonresident alien to be treated as a resident. You both will be deemed full year residents.


你们file jointly，那么你加拿大的收入就一定要报给美国，你们可以不划算，因为你没有很多的credits可以申请。而你又想用child credit，那么你可以file separately，但是你老婆可以claim你孩子做为dependant，同时make first year choice。而你作为nonresident alien没有美国收入，可以不用报美国税。

契丹蒙香

Hi ,every professional :
Here I have a question with my tax declaration.
my wife went to USA for nearly 2 months last year and  returned Canada with 1500 US$ revenue for salary. it is just a  personal  cheque  without no receipt showing that it is a salary.
how can i do  with this?
it is my first time tax declaration ,so i really need help!

Merci  bcp  a  l`avance a  toute et tous!!!!!!!!!!

yvan_wa

no it's not 100% true. if you make first year choice, that means you didn't meet the subsequent present test for resident alien. therefore only the part from the first day of the 31days in a row till the end of the year you can be treated as resident. to be resident alien, you have to meet the test at the end of the year.

as i mentioned before, you'd better figure out the income in canada and the difference of the credit you may get to make the first year choice.

i have different situation that i meet the test, i elect to be resident alien for the whole year so i report my worldwide income and claim foreign tax credit.

regarding the moving expenses, if it is to be reimbursed by your employer, you will not be able to claim it.

Post by booooooooks
The following is the original document, which on Page 9 of Pulication 519. You'd better to look at the examples either.


If you make the first-year choice, your residency starting date for 2005 is the first day of the earliest 31-day period (described in (1) above) that you use to qualify for the choice. You are treated as a U.S. resident for the rest of the year. If you are present for more than one 31-day period and you satisfy condition (2) above for each of those periods, your residency starting date is the first day of the first 31-day period. If you are present for more than one 31-day period but you satisfy condition (2) above only for a later 31-day period, your residency starting date is the first day of the later 31-day period.


However, if you want to make a choice that nonresident alien to be treated as a resident. You both will be deemed full year residents.


你们file jointly，那么你加拿大的收入就一定要报给美国，你们可以不划算，因为你没有很多的credits可以申请。而你又想用child credit，那么你可以file separately，但是你老婆可以claim你孩子做为dependant，同时make first year choice。而你作为nonresident alien没有美国收入，可以不用报美国税。

booooooooks

到06年他们能meet firt year choice requirements也可以的。first year choice是part-year residents。他们可以用exemption，但不能用standard deduction。


他们家的情况是，老公的加拿大收入有近2万，而在加拿大没有什么税可上，因为他们有很多credits可以申请。所以在美国也就没有什么claim foreign tax credit。鉴于他们的情况，他们也不能用form 2555。因为他们在加拿大居住没有超过330天。他们可以用allowable deduction （书和学费）for the scholarship，但是他的scholarship 太高，不太可能减掉太多。

上个帖子我说的file separately，因为他要make another choice that nonresident alien to be treated as resident。如果他们make 了这个choice，那么他们两个就都是full year residents。报两个人全年worldwide收入，但对于他们家来说不合适。但是如果孩子作为non-resident和母亲一起file，孩子可以claim to be treated as resident。那么孩子和母亲都是full-year residents，但他们之前没有加拿大的收入，所以也就无所谓了。但老公不make这个choice的话，他就要file separately。是不是能申请作为老婆的dependant而不是resident就要问了。


两个人都用first-year choice。这样两人都只报part-year的收入。但child credit 可能就不能申请了。




他们既然要申请moving expenses，那一定就没被reimburse喽。

Post by yvan_wa
no it's not 100% true. if you make first year choice, that means you didn't meet the subsequent present test for resident alien. therefore only the part from the first day of the 31days in a row till the end of the year you can be treated as resident. to be resident alien, you have to meet the test at the end of the year.

as i mentioned before, you'd better figure out the income in canada and the difference of the credit you may get to make the first year choice.

i have different situation that i meet the test, i elect to be resident alien for the whole year so i report my worldwide income and claim foreign tax credit.

regarding the moving expenses, if it is to be reimbursed by your employer, you will not be able to claim it.

yvan_wa

thanks booooooooks. i like this kind of discuss that allow us better understand the tax rules. appreciate.

actually it does not require 330days in canada to use f2555. they may meet bona fide resident test: "A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country, or countries, for an uninterrupted period that includes an entire tax year (January 1–December 31, if you file a calendar year return). See Pub. 901, U.S. Tax Treaties, for a list of countries with which the United States has an income tax treaty in effect".

that means if before coming to the US, they have stayed in canada for a period that covers the whole calendar year of 2004 (of course plus the part of 2005), they are bona fide resident in canada. so f2555 can be used for FTC.

However since they don't pass the resident alien test, this may not apply to them.

they couldn't choose to be a resident for the whole year. the conditions to meet for this choice is ALL the following:

1. You were a nonresident alien at the beginning of the year.
2. You are a resident alien or U.S. citizen at the end of the year.
3. You are married to a U.S. citizen or resident alien at the end of the year.
4. Your spouse joins you in making the choice.

the condition 3 means that one of the couple has to meet the resident test (183days+.....). they couldn't meet this. they have to use 2 forms 1040NR and 1040. seems that the wife has to file 2 forms, the husband may or may not choose to join his wife filing the US resident part (need worldwide tax for the resident period if choosing).

any other factors that i didn't see?

Post by booooooooks
到06年他们能meet firt year choice requirements也可以的。first year choice是part-year residents。他们可以用exemption，但不能用standard deduction。


他们家的情况是，老公的加拿大收入有近2万，而在加拿大没有什么税可上，因为他们有很多credits可以申请。所以在美国也就没有什么claim foreign tax credit。鉴于他们的情况，他们也不能用form 2555。因为他们在加拿大居住没有超过330天。他们可以用allowable deduction （书和学费）for the scholarship，但是他的scholarship 太高，不太可能减掉太多。

上个帖子我说的file separately，因为他要make another choice that nonresident alien to be treated as resident。如果他们make 了这个choice，那么他们两个就都是full year residents。报两个人全年worldwide收入，但对于他们家来说不合适。



他们还有一种选择，就是两个都用first-year choice。这样两人都只报part-year的收入。当然他们不能claim $5000块的standard deduction，只能用itemlized deduction，但可以claim$3200的exemption。具体那个合适就要算了。



他们既然要申请moving expenses，那一定就没被reimburse喽。

booooooooks

Yes, you are right. to meet either the bona fide residence test or the physical presence test can be eligible.



to woandlion，我帮你问过irs了，你们不能claim child credit。因为你的孩子不是resident。她/他也不能claim to be treated as resident因为只有spouse才能claim。而且他们的还解释到那个共同住半年的要求是说要住在美国半年。


如果不能申请child credit，那就。。。。还是nonresident吧form1040NR:eek: 。因为即使make firt year choice，作为part-year resident也不能claim standard deduction。


只是一个建议，你自己算吧。群策群力，有很多很好的建议，但是够你忙的。

Post by yvan_wa
thanks booooooooks. i like this kind of discuss that allow us better understand the tax rules. appreciate.

actually it does not require 330days in canada to use f2555. they may meet bona fide resident test: "A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country, or countries, for an uninterrupted period that includes an entire tax year (January 1–December 31, if you file a calendar year return). See Pub. 901, U.S. Tax Treaties, for a list of countries with which the United States has an income tax treaty in effect".

that means if before coming to the US, they have stayed in canada for a period that covers the whole calendar year of 2004 (of course plus the part of 2005), they are bona fide resident in canada. so f2555 can be used for FTC.

any other factors that i didn't see?

yvan_wa

you should request the employer to provide you a W2 form or 1099 form. with the info in those forms, you will bw able to make claim.

Post by 契丹蒙香
Hi ,every professional :
Here I have a question with my tax declaration.
my wife went to USA for nearly 2 months last year and returned Canada with 1500 US$ revenue for salary. it is just a personal cheque without no receipt showing that it is a salary.
how can i do with this?
it is my first time tax declaration ,so i really need help!

Merci bcp a l`avance a toute et tous!!!!!!!!!!