How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Ed Johnson Your Own Question

Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
Type Your Tax Question Here...
Ed Johnson is online now
A new question is answered every 9 seconds

Hello, I have just spoken to my Canadian accountant being ...

Customer Question

Hello, I have just spoken to my Canadian accountant being that I reside in the USA. I haven''t filed my taxes with him since 2000. because i only file 4 NR4''s a year that pertain to music royalties I get which generally don''t exceed $3000.00 /yr. Last year I made about 17,000.00 so I knew that I should file this year and catch up as I was gonna have to pay something in 2007. I was just warned that because they have me down as a non resident ( according to the NR4, they didn''t with hold any funds since 2000), I will be paying at least 5 to 6000.00 dollars on 2007 alone not to mention if they will addcompound interest on all the other years.   I didn''t relize they somewher down the line changed my status even though I keep a canadian address to Non resident! Help!!!
Submitted: 6 years ago.
Category: Tax
Expert:  Ed Johnson replied 6 years ago.

Do I understand correctly that you will be filing taxes in Canada as a non-resident?

Talks to your accountant again.

There is a tax treaty between the U.S. and Canada, where you get credit for taxes paid to the U.S.

 

Customer: replied 6 years ago.
Reply to Ed Johnson's Post: Let me clarify. The only taxes I pay in Canada are these royalty statements I get from my Canadian music representatives ie: Socan CMRRA, Sodrac. I exclude these taxes when I am doing taxes in the USA. In other words I don't declare these monies from Canada Stateside. Do I still qualify. My acct told me because I am seenas a non resident and they didn't with hold any monies, A) I have to pay a much highter rate of taxes and B) nothing is deductible!
Expert:  Ed Johnson replied 6 years ago.

Dear Sregga,

The answer to your question is that your accountant is correct. As a non-resident this is Part III income and you are subject to Part III tax of 25 percent\. (Unless a tax treaty allows you to treate it differently).

http://www.cra-arc.gc.ca/tax/nonresidents/individuals/nonres-e.html

I understand that you are Canadian and this is money that you pay into Canada.

But Canada consider's you a non-resident, AND the U.S. Taxes you as a permanent resident or U.S. Citizen. The U.S. asks that you report world wide income, unless specifically excluded by treaty.

I think you and you accountant may mis-handling your taxes. I am not arguing that you do not report this income in the U.S., or how you are doing it. It may be more beneficial for you to report this on U.S. taxes.

Pehaps I should not be opening that can of worms. But I want to make sure you are getting the best treatment as you can for your taxes.

Here are two documents that you should look at:

http://www.irs.gov/businesses/international/article/0,,id=169503,00.html

 

Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
Ed Johnson and other Tax Specialists are ready to help you
Customer: replied 6 years ago.
Thank you so much, I appeciate your time.
Expert:  Ed Johnson replied 6 years ago.

Dear Stregga,

Thanks, XXXXX XXXXX welcome. best of luck to you.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.