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

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。

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!!!!!!!!!!

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。

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.

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!!

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。

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 draft work, just to help you reasoning, do not take it as is)

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

Thanks BL.TAX. Our main data are shown as following:

US source: (in US$)
Wife :
1. Form W-2
Box 1, 3, 5, and 16 wages =25760
Box 2 Federal income tax withheld =3510
Box 4 Social security tax withheld =1597
Box 6 Medicare tax withheld =370
Box 12a = C 28
Box 15 State =MA
Box 17 =1105

2. Form 1099
Interest income =22

3. Monving expense (only can be claimed in US) =3049

4. Total days in US =125

5. One 11-year old child.

Husband:
Income from US source =0

Canada source: (in CA$)

Wife:
Income from Canada source =0
Unused tuition fees (Quebec) =5750
Federal total available tuition amounts =14420

Husband:
Employment income =800
Other income (schollarship)=17500
Total tuition fees (Quebec) =6360
Federal total available tuition amounts =22135

Note:
1. We must file tax return as residents in Canada/Quebec and pay drug insurance since we did not return the rented apartment and cancel health insurance cards.

2. We may make first-year choice to file US tax as resident aliens.

3. US$/CA$ exchange rate =1.2116.

BL.TAX

Could we set the technicals aside for a while?

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? Even if jointly filing could lower the tax rate, but the total benefits may not be too much, probably negative. Are you sure you will get more benefit than what you pay?

If you don't mind, put your data here(besides, income, like tuition credit , daycare expense etc),  let's discuss with the numbers, that may be easier to go ( I guess the tuitionn fees matter in your case).

Post by woandlion
Hi BL.TAX,

Sorry, I cannot understand. Could you explain that further? Thanks.