Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@beaconhillwm.ca or via telephone at 778.433.1314. You can also read more about Phil at www.Beaconhillwm.ca/team/about-phil/
Common Expat Tax Return Mistakes – Episode 9
02 February 22 
Crossing the 49th Podcast On episode #9 of Crossing the 49th Podcast we discuss the most common mistakes I see others making on their cross-border Canadian and US income tax returns.
I’ve reviewed a lot of US tax returns from new clients. Given the inherit complexity of cross-border tax returns I tend to see lots of incorrect filings and omissions. This post is not meant to point out other’s mistakes, but rather, inform those that have cross-border US and Canadian tax returns on how to improve their filings and to avoid potential harsh penalties and/or scrutiny from CRA or the IRS.
Today we discussed the following most common expat tax mistakes:
- Incorrect calculation of foreign tax credits
- Taxing US Social Security on US returns
- Not filing of FBARs or form 8938
- Neglecting to file form T1135
- Not reporting 100% of your worldwide income on your Canadian and US return
- Not properly calculating cross-border capital gains
- Not properly extending your US tax returns
- Not completing the questions on Schedule B
- Paying SE tax to the US on business income
- Using the wrong exchange rate for income
- Not filing from 5471 for Canadian corporate ownership
- Incorrect reporting of K1 forms for Canadian purposes
- Incorrect sourcing of W2 income
- Filing a 1040NR instead of a full 1040 return
You can read the full blog post here.
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Disclaimer: The information contained in this Podcast and YouTube video is for information purposes only and should not be construed as tax or financial planning advice. Tax and financial planning rules change from year to year and the information contained within may be outdated. Ensure to engage an experienced and competent tax and financial planner to help you with your tax and financial planning needs.
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This commentary reflects the personal opinions, viewpoints and analyses of the Beacon Hill Wealth Management Ltd. partner providing such comments, and should not be regarded as a description of advisory services provided by Beacon Hill Wealth Management Ltd. or performance returns of any Beacon Hill Wealth Management Ltd. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Beacon Hill Wealth Management Ltd. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Any discussion about taxation is for educational purposes only and should not be viewed as professional advice. Consult your tax professional for tax advice on your particular situation.
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