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Discussion Starter · #1 · (Edited)
What would this "income" be listed under? It's not unemployment. It's money given to families with kids a certain age. It is taxed in Canada. Would I just list it under my regular income (wages, salaries, tips ect) as it being an "ect."? What I mean is, I can't figure out where to include it on the 1040. Thanks!
 

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Easiest is probably "Other income" - line 21. This is also the same line you put your FEIE credit (in parentheses) on, so you may want to attach a little schedule showing something like:

Line 21 form 2555 (43,350) (or however much your FEIE works out to be)
Canada Universal Child Care Benefits 5,000 (or however much)

Total reported line 21: (38,350) or whatever the net of your negative FEIE and your positive benefits winds up being.

Cheers,
Bev
 

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Discussion Starter · #3 ·
Thanks Bev....wait for it wait for it....THAT MAKES SENSE! WOoohoo! ;) I'm going to figure this out if its the last thing I do. heh


Btw, you're help is amazing. I really appreciate it.
 

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Discussion Starter · #4 ·
this cannot be right. I'm being taxed on my child benefits in Canada...and I'm being taxed on my EI benefits in Canada, yet I can't included them into my FEIE? That means I'm going to get double taxed on them....what am I missing?
 

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this cannot be right. I'm being taxed on my child benefits in Canada...and I'm being taxed on my EI benefits in Canada, yet I can't included them into my FEIE? That means I'm going to get double taxed on them....what am I missing?
It depends - if your exemption and standard deduction cover the amount of your child benefits, your "taxable income" will still wind up as -0- (on the flip side of the 1040 form) and you won't pay tax on them. (If you're receiving child benefit in Canada, you may well qualify to file as "Head of Household" which gives you a larger personal exemption and standard deduction. The child, however, will need a US social security number if you are going to claim him or her.)

If that's not the case, then you break out the form 1116 and claim a tax credit for the tax paid on your child care benefit against whatever tax you may have incurred on the 1040.

It's a bit of a game, but it usually turns out ok in the end.
Cheers,
Bev
 

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Discussion Starter · #6 ·
I make very little money, I'm under 20K for a family of 5...the year I'm talking about, I was on EI for mat leave, I was getting a child benefit check, I had a very small amount of babysitting money, and I had employment income. The FEIE is not covering the child benefit or the Mat Leave EI...and I do form 1116 and it's not covering it all either! How can it be that I make so little but still owe the US govt money when I haven't lived there since 1998!! I'm furious and I don't know what I'm doing wrong I have wasted so much time on this, hours and hours I could be spending being a mother to my kids.
 

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Discussion Starter · #7 ·
SO, for head of household, my husband and I pay out of the same pool. We put all our money in a bank account and I pay the bills from there. It's impossible to tell or say that I paid half of maintaining our home. There is no record of that saying my money goes here, his money goes there. He makes more money than I do, as well.
 

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OH wait a minute. I may have found my mistake. ON form 1040 39b it asks if you were a dual status alien...I misunderstood it as meaning dual citizen. OH MY GOSH...so I wasn't taking that additional 5350.00 standard deduction along with my exemption for myself and my son of 3400 each. Good grief.
 

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It is easy to get confused! It was all worth it though when 4 months later I got the results of the 5 years of returns and the IRS accepted mine as submitted - i.e., I did not have to pay a fancy accountant.

If I remember correctly, I was also able to deduct the EI premiums I paid from the EI income.

The only year where I had to scramble to find deductions was my lowest income year. My guess is that while Canadians do pay higher taxes we get more breaks at the lower income levels. Really sad commentary to me given how little many wealthy US citizens and corporations pay in taxes.
 

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Discussion Starter · #10 ·
that was exactly my issues a few yrs Peg! My income for a few yrs was mostly due to EI maternity benefits and a child benefit here and so I had to end up taking an exemption for my oldest son (who has a SSI # from when he was a baby).

I JUST finished from 2003 to 20011 and it appears I owe nothing! Well aside from a self employment tax which I'm sure I can be exempted for under the Totalization Treaty between Canada and US since I paid into the CPP system up here the entire time. *fingers crossed that Revenue Canada gives that to me*


Question though. I have SOOOO many scribbles out and chicken scratches on these forms. Is it ok to send them like that or should I go back through and redo them on new form to make them "pretty" or not bother?
 

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OH wait a minute. I may have found my mistake. ON form 1040 39b it asks if you were a dual status alien...I misunderstood it as meaning dual citizen. OH MY GOSH...so I wasn't taking that additional 5350.00 standard deduction along with my exemption for myself and my son of 3400 each. Good grief.
Oh, that DOES explain it. You're entitled to the standard deduction and your personal exemptions for yourself and your son. (You say you're a family of 5 - I guess you're only taking your son because he's a US citizen and has the necessary SS number?)

Normally, if your husband is not a US citizen and not subject to US taxes, you'd file as married, filing separately, but if your son is also a US citizen and you can (roughly) prove that you contribute at least half of his support (should they question it), Head of Household is the way to go.

It takes filing the forms a couple times to get all the tricks that are second nature to those of us who started filing early.
Cheers,
Bev
 

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that was exactly my issues a few yrs Peg! My income for a few yrs was mostly due to EI maternity benefits and a child benefit here and so I had to end up taking an exemption for my oldest son (who has a SSI # from when he was a baby).

I JUST finished from 2003 to 20011 and it appears I owe nothing! Well aside from a self employment tax which I'm sure I can be exempted for under the Totalization Treaty between Canada and US since I paid into the CPP system up here the entire time. *fingers crossed that Revenue Canada gives that to me*


Question though. I have SOOOO many scribbles out and chicken scratches on these forms. Is it ok to send them like that or should I go back through and redo them on new form to make them "pretty" or not bother?
Once you've got your number figured out, just download the pdf forms from the IRS site. You can fill those in on your computer and print them out, which gives you nice, legible numbers. (Make it easy for them to see you're not "hiding" anything.) I also like the pdf forms because the print is really, really tiny and I figure they ought to squint a little bit over these forms, too.
Cheers,
Bev
 

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Discussion Starter · #13 ·
ah yeah, that makes since, and then I can keep these chicken scratch ones as my copies.


your last comment made me giggle...a.lot. ;) Make em squint!
 

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... Well aside from a self employment tax which I'm sure I can be exempted for under the Totalization Treaty between Canada and US since I paid into the CPP system up here the entire time. *fingers crossed that Revenue Canada gives that to me*


Question though. I have SOOOO many scribbles out and chicken scratches on these forms. Is it ok to send them like that or should I go back through and redo them on new form to make them "pretty" or not bother?
My understanding is that you are exempt from the SE tax if you did pay CPP on your self-employment earnings. In my situation, my SE income was nominal and therefore not enough to pay CPP.

I agree with Bev --- type in the PDF forms and print two copies. That way you have a printed copy plus an electronic copy.
 

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Discussion Starter · #15 ·
I paid CPP on my self employment one yr and the next year I didn't because I was also working at another job as well as my self employment, so that yr I even got a refund from paying in too much CPP from my job. So, I sent off a letter to Rev. Canada and I guess we'll see what they say, if they send me my exemption letter to give to the IRS or not. We're talking all of 100.00 here and it's going to burn my biscuits if I have to pay that and penalties on top of it. LOL.
 

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I paid CPP on my self employment one yr and the next year I didn't because I was also working at another job as well as my self employment, so that yr I even got a refund from paying in too much CPP from my job. So, I sent off a letter to Rev. Canada and I guess we'll see what they say, if they send me my exemption letter to give to the IRS or not. We're talking all of 100.00 here and it's going to burn my biscuits if I have to pay that and penalties on top of it. LOL.
My self-employment tax to the IRS of approx $100 end up costing me an additional $180 in penalties and interest; and that was on just $750 of self-employment earnings. Still cheaper than hiring an accountant to do all the returns!

I assure you that in my heart I wanted to fight it but it just wasn't worth it.

Did you get the Making Work Pay refund of $400 for 2010?
 

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Discussion Starter · #17 ·
My self-employment tax to the IRS of approx $100 end up costing me an additional $180 in penalties and interest; and that was on just $750 of self-employment earnings. Still cheaper than hiring an accountant to do all the returns!

I assure you that in my heart I wanted to fight it but it just wasn't worth it.

Did you get the Making Work Pay refund of $400 for 2010?
No! I don't even know what this is. To be honest, when I got to the Zero's in tax owed I just filled out zeros on the rest of the form. What is this Making Work Pay refund?
 

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Discussion Starter · #18 ·
ahh ok. I wouldn't be able to get this anyway. I just looked into it. My only earnings for 2010 was 2400.00 from my child benefits in CND. And it's below the filing requirements. I didn't "earn" anything through work. You know, cause being a mother is not work at all! ;)
 

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Canadian Children need SSN?

OH wait a minute. I may have found my mistake. ON form 1040 39b it asks if you were a dual status alien...I misunderstood it as meaning dual citizen. OH MY GOSH...so I wasn't taking that additional 5350.00 standard deduction along with my exemption for myself and my son of 3400 each. Good grief.
This is my first post so I'm not sure if I should be continuing this thread or starting a new one (since it is now October) but it is a very similar question / problem.

The only income was Canadian parental / maternity benefits and the Universal Child Credit. The Canadian tax was zero so I don't think the 1116 helps me here. If I claim both the Standard Deduction and an exemption for mother and child then I'm back to zero US tax. However, the child doesn't have a SSN yet. Do people think that this line in Pub 501 mean I can claim the child without a SSN because we are residents of Canada?

"Citizen or Resident Test

You cannot claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico. However, there is an exception for certain adopted children, as explained next."

Thanks for any suggestions,

Peter (on behalf of my wife)
 

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Child must have a SSN / ITIN

Do people think that this line in Pub 501 mean I can claim the child without a SSN because we are residents of Canada?

"Citizen or Resident Test

You cannot claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico. However, there is an exception for certain adopted children, as explained next."
Well, it turns out NO. The child must have a SSN or ITIN. Ended up giving 10% of the maternity benefit to Uncle Sam and another 10% in penalties for late filing...
 
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