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Ask HN: US tax prep for Canadians

6 points by iqster ↗ HN
What tax preparation services do my fellow Canucks living in the US use (for filing personal income tax)? I'd really appreciate any recommendations (positive or negative).

P.S. I know this might not be appropriate for HN. I have had zero luck asking people in my social network and google/yelping hasn't been helpful. I think there are a number of canucks in the US doing tech, and thought some of u might be around here.

Thanks

3 comments

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philiphodgen
Iqster,

Contact me. Contact details are in my profile. I know far, far more about this topic than I need to. We do this work but we're probably way to expensive. I'll try to find someone for you to work with.

Generally . . .

Cross-border taxation is needlessly complex, mostly because of the US government. Expect to spend a LOT of money. If you get someone cheap, be suspicious. Competent, experienced cross-border tax return prep people are scarce and are priced accordingly.

And the downside risk for you (and your return preparer) is high. So you are paying your U.S. tax return preparer to be your insurance policy in case you get hit with a penalty, in addition to paying for scarce talent. Ah, the law of unintended consequences . . . .

I had two new contacts TODAY with US/Canada tax problems. All the cool kids are having tax problems these days. :-)

philiphodgen
Let me be a little more helpful than just yelling "Scary Monsters! Beware!" :-)

Flags to wave:

1. RRSPs? Form 8891.

2. Still have bank/etc. accounts in Canada (including RRSPs)? Form TD F 90-22.1.

3. Mutual funds inside those Canadian accounts? Form 8621.

4. Own shares in a Canadian company (not public)? Form 5471. Partner in a partnership? Form 8865.

These are common foot-faults. I don't know about your particular situation. And all of these will apply whether the CRA thinks you are still a Canadian resident or whether they think you're a nonresident for Canadian tax purposes.

gyardley
Are you considered a resident or a non-resident of Canada for tax purposes, and do you have income from Canadian sources?

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html

If your answer to both those questions is no - as it is in my case - you don't need to file a Canadian return, and you can use whatever tax preparation services your American friends do.

Way back in 2001, the year I moved here, I believe I filed both an American and a Canadian federal tax return and on the Canadian tax return I claimed my American taxes paid as a foreign tax credit. I was a broke-ass student at the time, so using a tax-prep service wasn't an option. But I don't remember it being particularly complicated.

Keep in mind that I am not a tax accountant, the rules and regulations may have changed, and my memory is probably completely shot - so don't take my advice as gospel.