How do you split up a person's taxes and credits when they moved back to Canada?

[shf1957]

This is a weird question, have a client that now is telling me she is a Canadian Citizen , but resided in NYS and worked here for a few years. But this year she took her little son and left NYS and went back to Canada in August.  She wants to file her Federal return and NYS return and claim just the income from USA to get the EIC.   I am getting confused on how to handle this situation.  She said she had a NYS license but now does not.  She never told me in the past that she is a Canadian Citizen.  Tell me how to handle this... I know what she is after .. only claiming the low income in USA for the EIC$$.. and not accounting for the balance of the years income from Canada. I appreciate all the help in advance with this situation.

[sjrcpa]

Putting Canadian citizenship aside, is she a US citizen or Resident Alien?

And/or what kind of US visa does she have? 

Did she work here legally?

Something's fishy here.

[BobKamman]

Did she have a green card?  Did she give it up last year when she crossed the border?  Otherwise, she's still taxed on her worldwide income.  Might qualify for the Form 2555 exclusion, but not EIC.  

Easy problem for you to deal with this former client.

If she moved back to Quebec, tell her adieu

All other provinces, goodbye

[shf1957]

She married a USA citizen. Had and still has a green card.   They were married for 14 years, and had a little girl.  The little girl is a dual citizen.  She left her husband and she and her daughter moved back up to Canada in August.   I never knew she was from Canada and not a US citizen... even though she states now that she is a permanent resident of USA but a Canadian Citizen.   I have been filing their taxes for a few years now as married filing joint, with a child, living and working in NYS.. At the same jobs, year after year.   

[shf1957]

She(being told now after 6yrs of doing their joint taxes) has always had a social security card/number.  Has always worked at the same job in NYS as her husband also kept his same employment.  They have been married for 14 years and have a little girl ( that also had a social security card) but found out NOW is a dual citizen.   The Mother is  ( as I am told now) a Canadian Citizen BUT with permanent residency in USA.  Though she moved back to Canada in mid-August, taking her daughter and planning on divorcing her husband.

She worked, as she normally always did, until mid-August at her regular employment in USA.  Then one day took her daughter and moved back to Canada.   She has income from NYS from January - August   and now also has income from August- December from Canada.

[sjrcpa]

Not a dual citizen. Green Card = US Resident Alien, not US citizen. EDIT: Oh, you mean the child is a dual citizen.

Unless she gave up the Green Card when she moved back to Canada, she still has to file a US 1040 and pay US tax on her worldwide income. She may be eligible for the foreign earned income exclusion or foreign tax credit.

Filing 1040s for her in prior years was the correct way to file.

[BobKamman]

She's still married?  Were they separated for the last six months?  I smell an MFS.  

[shf1957]

After talking to her, I have figured it out..  no for many reasons she is not entitled to the EIC no matter what.. since I can tell she left in mid August.   Neither one had any other houseing but to be together under one roof.. maybe not in the same room.. but same roof that they shared.    It's just confusing my brain that she has income from 2 countries. and lived in both countries in the same year... and plans to stay in the foreign country. so US income and Canadian income.  She is believing that  I should JUST file the USA income on a 1040 mfs  and SHE will file a Canadian income for the other income.

[ljr]

I would be telling her to get accountant in Canada. Make sure you have paid your liability insurance. 

If anyone here specializes in Canadian taxes let us know. I have 2 clients I'm going to have to let go and I could send them to one of you all.

[shf1957 · Accepted solution]

Yes I will tell her to get an accountant in Canada.    I am so glad that I did nothing wrong in the past since she NEVER said anything about canada...just a housewife to her husband and mother to her child.  This is the first year she has ever had a w2, IF she even has one.  Was a married homemaker to a local country boy for over 14yrs..  Always had a social security card and a NYS driver's license.   Lived here and knew her husband for 22 years and married for 14 and still married.   I think I'll just stick to doing her husband's as MFS, just him /himself and that's it.