scrubbedexpat091

I am getting together my tax returns for the IRS, I make very little so nothing due, and simple, but how far back should I go? I live in Canada, and I've got 2013 done, I didn't work in 2012, so not sure if I should file a 0 return or not.

I did work in 2011.

2010 was in the US and its been filed long ago so not a worry there.

Pulaski

I think for the low paid there are some refundable tax credits. I don't know how living in Canada might affect those, but you should look into the credits for those on low income to see if there is anything you can claim back even for the year when you had no income.

penguinsix

If you are trying to clean up the paperwork, file for all the years you were missing, even if you end up placing a big -0- on the income side. It's just more convenient to have it all done, and you're already in the "mode" of filling out the forms such that it's not too much additional work.

Cook_County

As you live in a foreign country you will want to review the current IRS streamlined procedure to see if you can penalty free.

Owen778

If he is not liable for US taxes, why would be due a penalty?

Cook_County

There may be FBAR penalties or penalties to file other informational returns such as for RRSPs.

MidAtlantic

FBAR penalties? Can you tell us when these have been levied, apart from criminals?

Pulaski

With all due respect to the OP and his personal circumstances, taking his posting history into account, I sincerely doubt he has any FBAR filing responsibilities.

Jscl

You can only get refunds for up to three years past the deadline it should have been filed, so if you have nothing owing I'd only bother doing the last three years (for tax years 2010, 2011, 2012) plus the current 2013 one. You've done 2010, so I'd do all the other three, even if 2012 shows zero income. But that's just me.

If you have over $10,000 in non-US bank accounts remember the FBAR.

scrubbedexpat091

Correct. I don't come anywhere close to needing to file FBAR, and my income is nowhere is close to being at a taxable level, just want to make sure the returns are filed so the IRS can be happy.

penguinsix

A couple of points worth remembering:

1) The requirement to file is not based on taxes owed, but on whether you have income over a certain level. For 2013, a single person with income over $10,000 is required to file, even if they owe no taxes. There are also special cases for people who are self-employed (minimum of $400 in income). The old adage "if you don't owe, you don't file" is a myth.

Do I Need to File a Tax Return?-Federal Filing Requirements

2) The overseas exclusions (bona fide/physical presence and/or housing exclusion) ONLY are applicable if you file. If you are relying on the idea "i'm under the $9x,000 foreign income exclusion" than you have to make sure you file to claim this exclusion. If you don't file, you don't get it.

3) FBAR is an aggregate number that can pull in many things like banking and current accounts, but also some things like online gambling accounts and some other non-standard financial accounts. Probably not an issue but thought I'd mention it can be pretty broad.

scrubbedexpat091

I mailed them off to the IRS today and to the best of my knowledge, I filled everything out correctly, but I am sure the IRS will notify me if I made a mistake.

Pulaski

Your faith in the IRS is admirable!

Unless you are audited, which for us non-self-employed small fry is highly improbable, they will deposit your check if you sent them one, and write you a check if you claimed a refund, then file your return (not sure, probably scan the paper then destroy it). The chances of them doing anything with it, let alone notifying you that you left a box empty, is as close to zero as makes no difference.

scrubbedexpat091

That certainly makes me feel better. Its all income reporting and nothing else, other then the foreign income exclusion no deductions, no credits nothing. Just reporting my meager income since that's what they want.

I do dread the day when I have to deal with retirement savings in the next couple years, may have to hire a professional by then, I am afraid to save and invest in fear of complicating my US tax obligations and living in Canada.

Steve_

The trick to it is to use your RRSP for what it was intended for, i.e. a pension and remember to file form 8891 with your 1040 to defer the tax. People get into all kinds of messy situations with it, but that's because they try and do stupid things with it. And remember the IRS doesn't recognize any Canadian tax shelter scheme like an RDSP, RESP, TFSA, etc., the tax treaty only covers pension schemes like the RRSP, PRPP, LIRF, etc. (Also vice versa, Canada only recognizes US pension schemes)