# Filing US taxes - Born in Canada to American Mother



## plaidcat (Oct 3, 2012)

Hi everyone,

So, like many others I'm scrambling to figure out my tax situation. I've lived my entire life in Canada and have only had one account in the states which I had taxes filed (by my parents in '97) as it was in my name. And like many others I did not realize having one American parent automatically made me an American citizen as well. (my family thought it was more of a legitimate CLAIM to citizenship)

YES I am a US citizen by birth an YES I will need to file for what I am assuming is the last six years of any savings accounts or in trust accounts under my name in Canada as well as three years of my income. So I'm in the process of getting all of my information together because I am scared as HECK.

Now, I'm in a relationship with someone in the states and discovered and will be doing a fair amount of traveling. Now, before I realized this I applied for a US passport which I should be receiving within the next couple weeks as I had just realized I was dual and that as an American traveling to America I am to travel with an American passport.

As far as I know I do not owe any taxes (unless of course the IRS is interested in charging me penalties for not filing) *is there a chance I can be denied from visiting the United States if I have no filed taxes*? -I know this may sound crazy but this entire tax thing is a little crazy.

Any info would be wonderful! I hope after this is over I can participate in the forums with my tax experience!


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## Bevdeforges (Nov 16, 2007)

The whole US tax thing really IS a little bit crazy, but to this point there have been no reports of people stopped at the border for failure to file or anything like that. The IRS is not supposed to share its files with the Immigration service and vice versa. Besides, for all they know you have had NO income all this time and may not have needed to file. (I was actually in that situation one year and just didn't file. I have had no questions or problems with that in the almost 20 years since that time.)

And as far as any penalties or fines for not filing, the late filing penalty is a percentage of the amount of tax owed. Chances are, you owe no taxes (between the FEIE and tax credit for taxes paid in Canada) so any percentage of 0 is still 0.

You do need a US social security number, however, in order to file your taxes. Have you applied for that, yet? Because that can be tricky to get when you're an adult.
Cheers,
Bev


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## plaidcat (Oct 3, 2012)

Thanks for the info!

Since I just applied for my passport yesterday I had a thought on my way in this morning:* If I am issued a passport, they have obviously given me a background check as I did give them my American SSN and would then be deemed not a crook, thief, tax evader what have you.*

Which seems rational I guess?

Back to taxes:

So, I'm 25 and have been working full time for the last three years and part time before that. As I understand I am supposed to file the following:

Six years of Foreign Bank and Financial Accounts (2005, 2006, 2007, 2008, 2009, 2010, 2011)

Three years of income (2009, 2010, 2011)

Very new at taxes! Especially US ones. I'm sure my situation is incredibly simple and nothing compared to some of the issues on this forum. But I appreciate any help!


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## Bevdeforges (Nov 16, 2007)

plaidcat said:


> Thanks for the info!
> 
> Since I just applied for my passport yesterday I had a thought on my way in this morning:* If I am issued a passport, they have obviously given me a background check as I did give them my American SSN and would then be deemed not a crook, thief, tax evader what have you.*


Don't worry about this. They have been collecting SS numbers along with passport applications for ages. They don't do a background check, certainly not for taxes. The IRS has no way of knowing what income you have earned in a foreign country - they rely on you to "self-declare." And actually you don't have to file if your income is less than the various filing thresholds. They have no way to know that your income exceeds those thresholds unless they have received tax documents from US employers, US banks, etc.




> Back to taxes:
> 
> So, I'm 25 and have been working full time for the last three years and part time before that. As I understand I am supposed to file the following:
> 
> Six years of Foreign Bank and Financial Accounts (2005, 2006, 2007, 2008, 2009, 2010, 2011)


Only for those years where your combined foreign accounts (i.e. all non-US financial accounts) exceeded $10,000. 



> Three years of income (2009, 2010, 2011)


Only for those years where your total income exceeded the filing threshold. The filing threshold for a single person in 2009 was $9350. The threshold amount is raised a bit each year. (The instructions for each year's forms includes the filing thresholds by filing status.)



> Very new at taxes! Especially US ones. I'm sure my situation is incredibly simple and nothing compared to some of the issues on this forum. But I appreciate any help!


Download Publication 54 from the IRS website: Forms & Pubs

Most likely you'll need form 1040, Schedule B and a form 2555 for each of the years you plan to file. Each form has filing instructions, but if you want an overview, download Publication 17 - though it includes lots of information you don't need.

For your salary income, start with form 2555 (use the 2555EZ if you can - it's shorter and simpler). Chances are you'll be able to exclude your whole salary income - the form tells you what line to put things on. And then you just fill in the blanks on the 1040.

The Schedule B is just for the bottom section where they ask if you have foreign accounts totalling $10,000 or more. 
Cheers,
Bev


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## plaidcat (Oct 3, 2012)

Bev! You are an angel!

Thank you SO much you've been terrific! -and you've given me peace of mind (I don't know if you can tell.. I'm a real worrier)

Alright! I'm going to get on these taxes and report back once I've submitted.

Thanks again!


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