Tax Question: ROTH IRA for College Student (Canadian Income)

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cordanmom
Posts: 20
Joined: Tue Jan 06, 2009 5:14 pm

Tax Question: ROTH IRA for College Student (Canadian Income)

Post by cordanmom »

Is it possible to continue contributing to her ROTH IRA if your income source is Canadian?

Our 19 year old, daughter worked the summer in Canada at a university and earned about $7K (Gross) as a wage earner. Taxes were deducted from her income. She will receive a T4 income statement at the end of the year. She also attends this Canadian university as a full-time college student and holds both US and Canadian citizenship, if that makes a difference. Her parent's claimed her as a dependent on their US taxes in 2012 (and expect to do so in 2013). She travels home to the US when she is not in school or working.

She has contributed to a ROTH the last two years and would like to continue, if possible. I have been looking through the instructions to Form 1116 that will determine her Foreign Tax Credit which will then be entered on Form 1040/Line 47. I am getting stymied with where to enter her income, is it line 7 (even though she won't receive a W-2) or line 21 (other income)? My preliminary conclusion is that she can make a contribution to her ROTH. Perhaps it is only wishful thinking.

I am hoping that someone that knows there way around the technical rules of foreign earned income can tell me if I am on the right track.
Last edited by cordanmom on Mon Nov 04, 2013 1:07 pm, edited 1 time in total.
The best time to plant a tree was 20 years ago. The next best time is now. ~Chinese Proverb
Bob's not my name
Posts: 7417
Joined: Sun Nov 15, 2009 8:24 am

Re: Tax Question: ROTH IRA for College Student (Canadian Inc

Post by Bob's not my name »

I don't know but I sure would like to have my taxes automatically deposited in my bank account. That's a neat trick.
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