# US citizen living in Canada - simple tax question



## kwea (Jun 11, 2013)

Hi all. I've been researching and reading the forums, and have found a few posts from users in similar situations to mine. However, there's always a small difference that makes me worry that I might not be covering all my bases. Please excuse my blatant copy/paste from another user's post. I found it to be all-encompassing of my situation.

*I've been living in Canada for all of 2012 as a Permanent Resident (by marriage). This is the first year, however, that I'll be filing my taxes as a non-resident.
*I have had no income at all in 2012 (from either US or Canadian sources) except for the Universal Child Care Benefit that Canada gives me, which amounts to (at most) $3600 a year for any given year, and it is the only thing I claim on my Canadian taxes since it's taxable. 
*I have filed Canadian taxes every year since I received a SIN.
*My husband has provided financially for me and our child the entire time. 
*My husband is solely a Canadian citizen and has never had a green card in the US.
*We never lived together in the US at any time before or after marriage and my husband has never made any income in the US. 
*My husband's income is below $90,000.
*We have never had more than $10,000 in our bank accounts combined at any time. The only exception to this was when we were gifted a down payment for our home, so for a week our checking account had over $30,000. I've read through this forum that I only need to report month end totals though, and the money was deposited and then withdrawn throughout the course of the month.
*My husband has an RRSP, only in his name, with less than $10k in it. He had it before he married me. He does not have a TFSA, stocks, or any other financial instrument. 
*I do not have an RRSP, TFSA, or any other financial instrument in Canada or the US.
*My child has a RESP with $100 in it, and my name is listed on the account. It wasn't set up until march of 2013.
*We bought a house in 2012, but only my husband's name is listed on the deed.
*We do not own a business.
*We travel to the US frequently for brief visits to visit my family - usually just for the day or overnight. We have never had a problem crossing the border.


I've read that due to my lack of income and falling below income thresholds, that I do not need to file at all. I'm hesitant to do so, for fear that it may complicate issues down the line if the need to backfile ever arises. I'd like to just send in the papers and make sure it's done.

I've filled out the FBAR. What other forms do I need to fill out. I believe I need to start with the 1040 NR, correct? Any direction you can provide me will be greatly appreciated.

Thanks!


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## Nononymous (Jul 12, 2011)

You are correct - you do not need to file taxes, and probably not an FBAR depending on how you interpret the rule. If you wish to, it's optional, that's another matter (I have no useful advice on that question).

The only thing I'd recommend you do at this point is to get your name off the RESP, so that it's not subject to FBAR reporting down the road. Of course if you may need or want to report it if your child is a US citizen, or registered as such. But for now it's safest to put it in your husband's name only.


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## Bevdeforges (Nov 16, 2007)

Just to add to what Nononymous has said - if and when your income rises above the filing threshold for married, filing separately ($3800 for the current year), you do NOT file 1040NR. You file a normal 1040 as a US citizen.

But otherwise, you do not need to file income tax forms.

I wouldn't get too concerned about the FBAR filings if you only exceeded the $10,000 limit briefly in the past. You do not need to bother with any accounts or income that is in your husband's name only. For FBAR purposes, you would only report accounts you hold jointly with your husband - and even then, the FBAR is primarily a disclosure document. They are much more concerned about the account information (bank name and address, account number) than they are with the specific high balance figure you give them. If need be, you can always estimate it. But if the total of accounts on which you have your name is less than $10,000, just forget about it. 
Cheers,
Bev


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## kwea (Jun 11, 2013)

If I choose not to file this year since I don't meet the thresholds, what happens when I file down the road. Will the IRS ask for information from this year? My concern is that by not filing, I'm potentially making things harder for myself down the road. 

My husband doesn't have any US tax responsibility, but he's been listed on my tax returns previously. Will the system flag his ITIN and my SSN since we aren't filing anything this year?


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## Bevdeforges (Nov 16, 2007)

If you don't meet the filing threshold, then you don't need to file. In future years, when you meet the threshold, then you file. Unless the IRS has received information that you actually have income exceeding the threshold (i.e. W-2, 1099, other US documents), they pretty much assume that you don't have sufficient income. 
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

Keep documentation per normal, but if you don't have to file then you don't have to file.

It's a good idea to file if you can receive a refund, though. Here are a couple examples that might apply to expatiates:

1. You have a U.S. citizen-child (or a foreign child living with you in North America), and you received some earned income.
2. You were subject to withholding on a U.S. financial account.

There are probably other examples. In Case 1 you may be eligible for the Additional Child Tax Credit, and in Case 2 you may be able to reclaim some or all of the withholding.

You may have to file if you received a foreign gift or inheritance. See Form 3520.

You may have to file a FBAR even if you don't have to file a tax return.

You may wish to file if you live in a high tax jurisdiction and want to document Foreign Tax Credits for use in offsetting future U.S. taxes, although you could also file back year returns when/if you ever need those credits.

You may have to file if you intend to renounce U.S. citizenship.


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