BackinCanada
Aug 19, 2010, 11:17 PM
My husband died in May, 2010. He had dual Canadian/US citizenship. We lived and worked in the U.S. for about 27 years. I am Canadian and still hold a U.S. green card.
When we returned to Canada at the beginning of 2008, we didn't file taxes in the U.S. Last week, my deceased husband received a letter from the IRS asking for the 2008 tax return. I am assuming that a payout from his 401K (he withheld an additional 13% to cover the taxes) triggered the letter. I called the IRS and they said I had to fill out joint tax returns for 2008 and 2009 and I guess for myself forever, especially since I'll be receiving U.S. Social Security in about 6 1/2 years.
I was told to fill out the 1040 as well as forms 2555 and 1116 to see which one gives me a better outcome.
Except for the one 401K payout, the only income was from paychecks. There was no property, etc. My husband died without a will and left me with a very small amount of money.
I am now living in Canada and have never filled out an American tax return. I am afraid that the U.S. government will make me pay back taxes, interest and penalties for my deceased husband. He earned good money in 2008 while I earned about $30,000. Can the IRS do this?
How do I find a (cheap) accountant to do the U.S. taxes for me since I'm living in Canada?
Thank you for any advice you can give me.
When we returned to Canada at the beginning of 2008, we didn't file taxes in the U.S. Last week, my deceased husband received a letter from the IRS asking for the 2008 tax return. I am assuming that a payout from his 401K (he withheld an additional 13% to cover the taxes) triggered the letter. I called the IRS and they said I had to fill out joint tax returns for 2008 and 2009 and I guess for myself forever, especially since I'll be receiving U.S. Social Security in about 6 1/2 years.
I was told to fill out the 1040 as well as forms 2555 and 1116 to see which one gives me a better outcome.
Except for the one 401K payout, the only income was from paychecks. There was no property, etc. My husband died without a will and left me with a very small amount of money.
I am now living in Canada and have never filled out an American tax return. I am afraid that the U.S. government will make me pay back taxes, interest and penalties for my deceased husband. He earned good money in 2008 while I earned about $30,000. Can the IRS do this?
How do I find a (cheap) accountant to do the U.S. taxes for me since I'm living in Canada?
Thank you for any advice you can give me.