Int'l Taxes For Dummies

[ARbound]

I filed my taxes in Canada 2 weeks ago and said I was a non-resident because of the following reasons (when I spoke with the CRA):

- I lived outside of Canada for around more than half a year and was not living in Canada on December 31st, 2013.
- I own no furniture, cars, houses, property, stocks or bonds or w/e Canada calls 401(k)/IRA
- My OHIP coverage is expired as I never completed the renewal and don't qualify
- I don't work or generate any income in/from Canada and do not work for a Canadian company, government or aid program
- I have no kids/dependents/spouse

Also, for me, because I'm poor in Canada (I've never had to pay income tax, I never made enough to) and don't make much either here in
Argentina it made no difference what I selected.

I chose Non-resident because CRA stressed that you can not be a resident/deemed resident for OHIP reasons and different for CRA.
This, plus the reasons above, and the fact I know I will live abroad entirely during 2014 and may never return to Canada this year (due to it costing
to much to visit) I think it makes the most sense.

If you're not sure, go with the OHIP style of answer to figure out your status as the CRA considers it a very strong tie to Canada.

P.S. You can't e-file which sucks as it will take up to 8 weeks to process if you're owed a refund. (I'm getting like $200 USD and love it).

 

[citygirl]

From what my accountant told me, she would still be liable for US Federal income tax as long as she is not already paying taxes on that same income here. If she no longer resides in the US she doesn't have to pay any state income taxes. However I am not an accountant, just relaying my understanding of what I was told. There have been prior threads on this so you might want to do a search of "US taxes"

Actually she wouldn't be liable for federal INCOME tax (yes, she still needs to pay medicare, social security, etc) as long as she meets the physical test (which means you are out of the US for more than 330 days). It makes no difference if your wife is paid by a US company into a US account for work in the US. There are other considerations (residency status, etc) which also can affect what you can claim - housing allowances, etc.

 

[Alicia karr]

Yes City Girl, it all depends on her actual taxable income and deductions. I'm just saying the IRS considers her income in the US as potentially taxable, no matter whether she resides in the US or not. I would suggest anyone in question about this stuff to check with a professional accountant!

 

[khairyexpat]

As promised, I´ve been dabbling with this thread, with my limited knowledge of the subject (only an average tax payer with ZERO accounting or tax experience). Half decent first cut, almost ready for corrections and input.

During the past almost 2 years, I made it clear and obvious that:

· I am NOT soliciting anything​

· Retired with time on my hand to do something pleasant, ... and if it has some use, all the better.​

· Have no problem what so ever, and not afraid of being different from the overwhelming majority.​

· It is my style some times to use provocative colorful stuff to grab attention, .. not asking or expecting to get into hot water.​

· Puzzled that even, benign topics stirred so much fuss.​

·​

I guess I did not manage to do as a good job as I really wanted to.

Afraid of creating any more havoc (had ZERO intention to), guess it´s best to hold off, .. wait for better times.

 

[sleslie23]

As promised, I´ve been dabbling with this thread, with my limited knowledge of the subject (only an average tax payer with ZERO accounting or tax experience). Half decent first cut, almost ready for corrections and input.

During the past almost 2 years, I made it clear and obvious that:

· I am NOT soliciting anything​

· Retired with time on my hand to do something pleasant, ... and if it has some use, all the better.​

· Have no problem what so ever, and not afraid of being different from the overwhelming majority.​

· It is my style some times to use provocative colorful stuff to grab attention, .. not asking or expecting to get into hot water.​

· Puzzled that even, benign topics stirred so much fuss.​

·​

I guess I did not manage to do as a good job as I really wanted to.

Afraid of creating any more havoc (had ZERO intention to), guess it´s best to hold off, .. wait for better times.

Error: Does not compile.

 

[eorl]

If you have something written I would post it. Like all things tax it is probably mostly correct or sometimes correct. Making a guide is so hard because answers change with circumstances.

It is a difficult topic because rather than having a rule every answer turns into "it depends." Just using the USA and Argentina as examples sometimes you should pay social security to both countries, only one country, or neither country. It all depends on the circumstances (Argentine employer, USA employed on assignment to Argentina, Self-employed, etc.) Income taxes can be another issue whether or not to use credits or elect exclusions. Sometimes the answer is clear, other times it makes no difference, but most of the time it depends on your current and future circumstances.

A really big issue here is that accountants tend to do two tax returns. The first one according to the rules and the second is "What can we get away with." Most people tend to file the the second. It is so common that most accountants here told me they would have no clients if they did everything according to the rules. This differs from the USA where the majority of accountants (at least the professional ones) try to file a return as accurate as possible.

For USA citizens a good book is...The Expatriate’s Tax Bible—The Complete Guide to U.S. and Foreign Taxes for the American Abroad
A free copy is available on pdf if you google the name. It isn't up to date (2008) but it covers the general rules with specific examples.

 

[lucha54]

For USA citizens a good book is...The Expatriate’s Tax Bible—The Complete Guide to U.S. and Foreign Taxes for the American Abroad
A free copy is available on pdf if you google the name. It isn't up to date (2008) but it covers the general rules with specific examples.

Special thanks for the recommendation!

 

[mraccountant]

As long as you are a citizen of the USA, the U.S. government will require you to report any income you make around the world, regardless of where you are a resident. With that said, there many ways to minimize any taxes you may owe. The statement "If you earn in Ar and are paid by an AR company then you do not pay US taxes" is not true in many scenarios, and I would suggest seeking proper accounting advice before making any decisions related to the IRS.

 

[mraccountant]

Special thanks for the recommendation!

It wouldn't be wise to use material that is based on tax rules prior to 2008....many things have changed since then...

 

[khairyexpat]

..