Dear David, I am a paid customer of yours. As usual, I am writing to ask you a few question. I hope that you would not mind answering them. I am a US permanent resident living in Washington State. But my job is in Vancouver, BC. Besides the main job in Vancouver, I sometimes earn a small amount of money (say $5,000/year) by serving as a consultant in US. Here are my questions. 1. Do I have to pay US social security taxes for the income from my consulting business? If so, am I supposed to pay them each time I receive the consultation fee or pay when I file my tax return? 2. Can I contribute to Roth IRA out of my US income? (I am putting money in a Canadian RRSP from my Canadian income.) I would appreciate your help. Thanks, Shinichi Sakata ========================================== david ingram replies: 1. You will pay US Social Security on your US return by filing Schedules C and E with your 1040 Tax return. You will also claim credit for the taxes paid to Canada on form 1116 with your US return. Because you were living in Canada for part of 2004 and then continued to work in Canada, your return is very complicated with regard to foreign tax credits. 2. Because you are living in the USA, there are only a couple of people who can legally sell you an RRSP at this time. Shaun Rickerby at TD Waterhouse in Richmond ((604) 482-5188) is one of a dozen people in Canada who has taken the time and made the effort to licence himself to deal with people in your position. I would suggest that you should come out to one of our Free Thursday Night seminars. I think you should not have an RRSP but look at a leveraged plan outside of the RRSP. This would work in both countries without getting you involved with rather complicated RRSP reporting as a US resident or citizen. As I remember, you are very close to getting your US citizenship as well. Every Thursday evening Fred Snyder and I hold a free seminar at Fred's office at 1764 West 7th (corner of Burrard in the Spence Diamond building) in Vancouver. The topics are: Seg funds and an alternative to the traditional RRSP. Making your mortgage income tax deductible Critical Care insurance for disasters. coffee and sometimes cookies of course. Phone 604-731-8900 to reserve your seat -and, you are welcome to bring your brother, your sister, your mother or father, your children, your best friend, your worst enemy or your own financial advisor who hasn't explained how to make your mortgage deductible. =============== Answers to this and other similar questions can be obtained free on Air every Sunday morning. Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Dundee Wealth Management and I, David Ingram will be hosting an INFOMERCIAL but LIVE talk show called "ITS YOUR MONEY" Those outside of the Lower Mainland will be able to listen on the internet at www.600AM.com <http://www.600am.com/> Local calls are taken at (604) 280-0600 and Long Distance calls are taken at 1( 866) 778-0600 ========================================= This from "ask an income tax and immigration expert" from www.centa.com <http://www.centa.com/> or www.jurock.com <http://www.jurock.com/> or www.featureweb.com <http://www.featureweb.com/> . David Ingram deals on a daily basis with expatriate tax returns with: multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, and any of the 43 states with state tax returns, etc. Rockwall, Dallas, San Antonio and Houston Texas Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax and ImmigrationWizard Income Tax and Immigration Guru Income Tax and Immigration Consultant Income Tax and Immigration Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist expert preparer consultant expatriate anti money laundering money seasoning FINTRAC E677 E667 4789 4790 TDF-90 Reporting $10,000 cross border transactions ========================= Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Garland, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon. Pennsylvania, Rhode Island, Rockwall, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming, British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec City, New Brunswick, Prince Edward Island, Nova Scotia, Newfoundland, Yukon and Northwest and Nunavit Territories, Mount Vernon, Eumenclaw, Coos Bay and Dallas Houston Rockwall Garland Texas Taxman and Tax Guru and wizzard wizard - consultant - expert - advisor -advisors consultants - gurus - Paris Prague Moscow Berlin Lima Rio de Janeiro, Santaigo ============================ David Ingram's US/Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Res (604) 980-3578 Cell (604) 657-8451 (604) 980-0321 Fax (604) 980-0325 Email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com <http://www.centa.com> . If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" ============================== --- Incoming mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.797 / Virus Database: 541 - Release Date: 11/15/04 --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.797 / Virus Database: 541 - Release Date: 11/15/04 --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.797 / Virus Database: 541 - Release Date: 11/15/04
