The Tax Preparation Blog

Posts Tagged ‘canada’

Question: As a US Citizen filing a T1 for Canada for 1 month of December’s pay, how do I claim my US income?

As a US Citizen I have to claim all income, whether based in the US or foreign and I am taxed appropriately. US-Canadian tax treaty prevents double taxation, and according to the the CRA on form T2209 (Federal Foreign Tax Credits), I am not to claim my US income due to this. As I only received 1 paycheck before the end of the year for $4600, then by normal filing of the T1 this puts me below the poverty line for the year and therefore I do not have to pay any tax at all.

This doesn’t seem right, but I cannot seem to figure out what’s wrong here.

Answer: The T2209 is meant to be looked at as you are a Canadian and you earned some income elsewhere and want to claim a credit.

I think you need to file a non-resident return for CRA for the $4600, of which you should get all the tax back because this is under the basic personal amount.

On your US return, claim the $4600 as foreign income and claim the taxes you paid in Canada as a credit.

Permanent Establishment in the United States: A View Through Article V of the U.S.-Canada Tax Treaty (Tax Law) $59.54 The last time someone wrote comprehensively about permanent establishment in the United States, the catchwords of the day were Mayaguez, Watergate, and Squeaky Fromme. At that time, there were only nine U.S. cases and thirteen revenue rulings addressing permanent establishment. Perhaps not surprisingly, over a third of those authorities addressed the U.S.-Canada tax treaty. This book provides a fr…

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U.S.-Canada income tax treaty requires income of U.S. branch to be determined under facts and circumstances.: An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on November 1, 1997. The length of the article is 753 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.From the supplier: …

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Is DTC being revised under pressure?

The proposed amendments are aimed at pleasing influential taxpayers but introducing collaborative changes is a sign of pragmatism and will lead to reduced litigation.

(RIP) Aaron Russo speaks on the elite

Question: Is the Canada Child Tax Benefit only for low income families??

Because I read in the paper (those ads) that it is (Ontario), but I went on the online calculator and I put in if you make $100,000, and I still got a number…what is this??
But it DOES say for low income families…I don’t get it…(and when I was testing the calculator, I put in no dependants with disabilites…)
I went to the online calculator…read the question

Answer: CTB is not just for low income families.

You could go to Canada Revenue’s Agency website and read about the CTB, and the rulings about it. There are circumstances and other such things which can relate to it.

Letters to the Editor

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