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Conditional Permanent Resident Tax Question

Conditional Permanent Resident Tax Question

Old Jan 1st 2002, 4:19 pm
  #1  
Linda
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My husband is Canadian and receives a teacher's pension. It is directly deposited
into his Canadian bank account, minus the taxation for being a non-resident Canadian.

Does he need to add that amount onto our joint US taxes since it has already been
taxed in Canada? If so, how to determine the value due to the exchange? Also, if it
does need to be entered, obviously it should be deducted elsewhere to avoid double
taxation. Where on the tax form would the taxation be deducted? Other than having his
bank statements, he owns nothing or has anything in Canada.

If it does need to be added, then how is the state tax (Oregon) handled?

Thanks, Linda
 
Old Jan 1st 2002, 5:33 pm
  #2  
Michael Voight
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Linda wrote:
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Residents and citizens must declare income from outside the US. However, it is would
be deducted up to about $75000. So, you claim it, then deduct it.

Michael
 
Old Jan 1st 2002, 7:28 pm
  #3  
Concierge
 
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My Canadian spouse also has a Canadian pension direct deposited to his bank account in Canada. Although he is officially a non-resident, but property owner, he still has to pay taxes on his income both from the pension and the property. He pays Canadian tax and in the US he claims the full Canadian income on his 1040 and since it is under the amount allowed, it is written off before US tax is calculated. Knowing Canada there is no way your fiancee/spouse's school teacher's pension amounts to near the 70,000 odd US Dollars which is excludable. I wager his pension is approximately $30,000 Canadian which would be about $1.98 US (kidding). We've never bothered with official averaged conversion since historically over the last three years it has been fairly consistent. We do a rate of conversion on yahoo. Today's conversion for $30,000 is 18,845.02 CDN. Nowhere near the 70,000 odd figure so IRS will not have a problem with your generalized calculation.

Rita
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Old Jan 1st 2002, 8:27 pm
  #4  
Linda
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Michael Voight <[email protected]>
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[usenetquote2]> >[/usenetquote2]
[usenetquote2]> > My husband is Canadian and receives a teacher's pension. It is directly deposited[/usenetquote2]
[usenetquote2]> > into his Canadian bank account, minus the taxation for being a non-resident[/usenetquote2]
[usenetquote2]> > Canadian.[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
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Thanks! Would you happen to know where on the form it would be deducted? How about
whether it would be in Canadian or US funds? His Canadian tax accountant thought
there was some unified rate exchange, but I don't know where to find that
information. The rest of our taxes would be very easy to figure out since I know
which blanks to fill in.

Linda
 
Old Jan 1st 2002, 10:39 pm
  #5  
Rita
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My Canadian spouse also has a Canadian pension direct deposited to his bank account
in Canada. Although he is officially a non-resident, but property owner, he still has
to pay taxes on his income both from the pension and the property. He pays Canadian
tax and in the US he claims the full Canadian income on his 1040 and since it is
under the amount allowed, it is written off before US tax is calculated. Knowing
Canada there is no way your fiancee/spouse's school teacher's pension amounts to near
the 70,000 odd US Dollars which is excludable. I wager his pension is approximately
$30,000 Canadian which would be about $1.98 US (kidding). We've never bothered with
official averaged conversion since historically over the last three years it has been
fairly consistent. We do a rate of conversion on yahoo. Today's conversion for
$30,000 is 18,845.02 CDN. Nowhere near the 70,000 odd figure so IRS will not have a
problem with your generalized calculation.

Rita

[email protected] (Linda)
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Old Jan 2nd 2002, 4:35 am
  #6  
Linda
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I now have the 2001 version of Form 1116, the Foreign Tax Credit. I was unable to
even see the instructions part of it since my ISP is whacko right now. Would his
retirement income be considered Passive Income? Nothing like giving 10 choices. That
book I got from IRS last year should be around here somewhere.

I need a cheat sheet like I had when we went through the 129F process!
I am not too sure if the tax people around here really know
about Canadian taxes. Nothing like living in a small town.

Knowing Canada
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NO KIDDING!!!!! That's one reason why he started working in the US. heh heh....he
doesn't earn that much an hour and he thinks he is earning a fortune! Someone
gave him a Canadian quarter last week since it isn't worth anything here. He is
happy since it will help to buy a Tim Horton's cup of coffee for the next time we
go to Canada.

Linda

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[usenetquote2]> > My husband is Canadian and receives a teacher's pension. It is directly deposited[/usenetquote2]
[usenetquote2]> > into his Canadian bank account, minus the taxation for being a non-resident[/usenetquote2]
[usenetquote2]> > Canadian.[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> > Does he need to add that amount onto our joint US taxes since it has already been[/usenetquote2]
[usenetquote2]> > taxed in Canada? If so, how to determine the value due to the exchange? Also, if[/usenetquote2]
[usenetquote2]> > it does need to be entered, obviously it should be deducted elsewhere to avoid[/usenetquote2]
[usenetquote2]> > double taxation. Where on the tax form would the taxation be deducted? Other than[/usenetquote2]
[usenetquote2]> > having his bank statements, he owns nothing or has anything in Canada.[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> > If it does need to be added, then how is the state tax (Oregon) handled?[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> > Thanks, Linda[/usenetquote2]
 

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