Sent: Tuesday, April 18, 2006 4:55 PM
Subject: TN and taxes
Aloha from Oahu
My husband and I have been working in the US for over 2 years. We have
filed income tax here with a US accountant and this year our Canadian
accountant informs us that after reviewing our US paperwork, we owe a
substantial amount to Rev Can. My visa is a TN and my husband is on an
H1B1.
I am confused as to why we have to file in both countries and then owe
in Canada and get a small refund from the US. Is this filing in both
countries necessary when we earned nothing in Canada? It seems to
defeat the purpose of working here.
Our home is still there but that is all.
Do you need more details? I would really appreciate hearing from you.
Julie Barker
Management Consultant
Ad-Ventures Hawaii LLC
808.791.0167 office
808.791.0190 fax
808.387.7501 cell
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david ingram replies:
As described, you should not owe any tax to Canada on your US earnings under Article IV of the US Canada Income Tax Treaty .
You should be using a cross border accountant who understands the Treaty FIRST.
If the home is rented out, it must be reported in Canada on a section 216(4) RETURN and then reported again on Schedule E of your US return.
If the house rental is not on the US return, then it is wrong as well.
When you left Canada, you should have done a "Departing Canada" return which included the date of departure and forms T1161, T1243 and T1244 if necessary. IF YOU LEFT A RESIDENCE BEHIND, YOU HAD TO FILE FORM T1161.
You should be sending the whole thing to someone like us.
Cross Border non-resident international income tax immigration expert consultant preparer david ingram hear at 9:00 last Sunday of every month on www.600am.com Vancouver time
David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321 Fax (604) 980-0325
www.centa.com www.david-ingram.com
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