# filing question



## berniej (Mar 5, 2012)

Okay think I'm done.I did both my daughters taxes(hope the right way)They have 

never filed.I did the 1040 plus the 2555ez and the schedule B for their foreign 

and US interest. Also enclosed a cover letter explaining why they never filed.I'm

going to send all 6 years in one envelope ,send it registered for each daughter 

Am I forgetting anything??

I've never done this before either.

Thanks for the help.

Bernie

ps still have to do mine


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## Peg (Sep 22, 2011)

I sent each year in it's own envelope with my name and tax year on it. Then I put all of the years in one big envelope. If I was sending for two people I would put an envelope for each person in the courier envelope and then within each envelope have one for each year. My rationale is that when a human opens the envelope it is easier to have one for each year in case a paper falls out.

Reminder not to use staples.

It feels good to get them sent in!


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## ExpatTori (Mar 19, 2012)

I think you are good to go! Did you have someone help you? 

Tori


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## berniej (Mar 5, 2012)

ExpatTori;Did it myself with a lot of good help from Bevdeforges and others on this site plus from another site.I'm just hoping I got it all done right.Now that I'm done and I review them it doesn't seem so difficult to do

Peg, good idea I'm going to do that also.Did you use a cover letter when you did yours.I'm thinking of attaching a copy to each set of forms.Have to find a company to ship it to the states.

Bernie






ExpatTori said:


> I think you are good to go! Did you have someone help you?
> 
> Tori


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## Bevdeforges (Nov 16, 2007)

There are many different points of view on this, but I'm firmly on the side of sending in tax forms by standard post. (OK, if you're worried about whether or not they get it, go for registered with return receipt, if you like.) I admit I'm cheap - but spending lots of money on overnight shipment for a tax filing (or multiple filings) showing that you owe $0 strikes me as a huge waste.

Now, if you owe money, that's a different story....
Cheers,
Bev


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## berniej (Mar 5, 2012)

Bev,

The way I figured it out they don't owe anything so I guess I'll send it normal post return reciept.Thats how I normally do it.

Thanks for the help.

Bernie







Bevdeforges said:


> There are many different points of view on this, but I'm firmly on the side of sending in tax forms by standard post. (OK, if you're worried about whether or not they get it, go for registered with return receipt, if you like.) I admit I'm cheap - but spending lots of money on overnight shipment for a tax filing (or multiple filings) showing that you owe $0 strikes me as a huge waste.
> 
> Now, if you owe money, that's a different story....
> Cheers,
> Bev


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## Peg (Sep 22, 2011)

berniej said:


> Peg, good idea I'm going to do that also.Did you use a cover letter when you did yours.I'm thinking of attaching a copy to each set of forms.Have to find a company to ship it to the states.
> 
> Bernie


I did a cover letter for my tax returns as well as my FBARs. For my tax returns it did not matter because they still penalized me for the nominal amount that I owed on self-employment tax for medicaid and social security that I will never receive. Oh well! However, the refund they gave me for a different year nearly offset the amounts due.

For me, the FedEx payment of $45 Cdn was totally worth it because it got there quickly and I got all of the details on who sent it. I felt a relief when it arrived. That price is all relative for everyone as to what is worth it for them.


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## Peg (Sep 22, 2011)

Correction: details on who received it (not sent it...) - name, time etc.


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## berniej (Mar 5, 2012)

Peg got it thanks

Bernie



Peg said:


> Correction: details on who received it (not sent it...) - name, time etc.


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## Bevdeforges (Nov 16, 2007)

Peg said:


> I did a cover letter for my tax returns as well as my FBARs. For my tax returns it did not matter because they still penalized me for the nominal amount that I owed on self-employment tax for medicaid and social security that I will never receive. Oh well! However, the refund they gave me for a different year nearly offset the amounts due.
> 
> For me, the FedEx payment of $45 Cdn was totally worth it because it got there quickly and I got all of the details on who sent it. I felt a relief when it arrived. That price is all relative for everyone as to what is worth it for them.


Peg, it all depends on your tax situation. It sounds like you had open issues that could have gone either way, plus the potential for penalties. In that case, sending it registered or by overnight express is definitely worth every penny.

For most folks, who ultimately aren't going to owe anything, but just want to get caught up on their obligation to file, regular old post is probably good enough. Whatever lets you sleep at night!
Cheers,
Bev


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## Omater (Nov 26, 2011)

Peg said:


> I did a cover letter for my tax returns as well as my FBARs. For my tax returns it did not matter because they still penalized me for the nominal amount that I owed on self-employment tax for medicaid and social security that I will never receive.


That statement concerns me. If you don't mind my asking, why did you have to pay self-employment tax? Was your business a Canadian corp or a US corp or other?


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## Peg (Sep 22, 2011)

Omater said:


> That statement concerns me. If you don't mind my asking, why did you have to pay self-employment tax? Was your business a Canadian corp or a US corp or other?


It was a tiny sole proprietorship - essentially a hobby that made some money. It was too small of income to pay CPP and therefore I could not offset the Self-Employment tax. Perhaps there was a way around it but I did it all myself so the $300 penalties were still far less than paying for an accountant. The SE tax was 14% of my net self-employment income and then another roughly 22% of net SE income as penalties and interest since it was from a few years ago. There were 2 years of SE income.

My understanding is that when you pay CPP in Canada on self-employment you then do not have to pay the SE Tax in the US as it is for social security and medicaid - working from memory so that may not be accurate. Or it just might be accurate.


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## Bevdeforges (Nov 16, 2007)

Buried somewhere in Publication 54 there is a statement to the effect that you have to pay self-employment tax (i.e. US social security) on income from a business outside the US unless you pay local social security (i.e. social insurances) locally as either an employee or as a self-employed individual on that income.
Cheers,
Bev


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## Peg (Sep 22, 2011)

My question now is: Since I had to pay the Self-employment tax does the US Gov have to pay me Social Security when I am age-eligible?


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## Bevdeforges (Nov 16, 2007)

Peg said:


> My question now is: Since I had to pay the Self-employment tax does the US Gov have to pay me Social Security when I am age-eligible?


If you rack up enough credits. In the US, it takes 40 quarters (i.e. 10 years) of credits to vest in your social security rights. If you're "close" (and I don't know exactly how close you have to be), there is some provision for counting time worked in Canada, or in another country the US has a treaty with.
Cheers,
Bev


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## Peg (Sep 22, 2011)

Bevdeforges said:


> If you rack up enough credits. In the US, it takes 40 quarters (i.e. 10 years) of credits to vest in your social security rights. If you're "close" (and I don't know exactly how close you have to be), there is some provision for counting time worked in Canada, or in another country the US has a treaty with.
> Cheers,
> Bev


Nah, not close but it was comical to think about for a moment. Thanks for the info Bev.


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