hi this is my first year living in Canada moved up in May2010. My husband is Canadian and I am an American with permanent residency as of May 2010. I work in New York and cross the border daily. I am trying to figure out what forms I am to fill out since I do not have any Canadian income, we do not own a home and will be filing separately from my husband for taxes?
I am just needing some guidance. I am sure there is a thread on here for this but I haven't found it
Thanks for your help
US CITIZEN/PR CANADA WORKS IN US, LIVES IN ONTARIO
Moderator: Mark T Serbinski CA CPA
Having moved to Canada in May 2010 you are now residents of canada and will be taxed on worldwide income in Canada from May 2010 onwards. For Canadian taxes you will both file T1 showing all income from May 2010 onwards including your US salary wch you will report on your 1040 and the tax paid on that will be a foreign tax credit to you in Canada.
You will of course still file your 1040 in US as married but can elect to file as Married filing seperately as you stated.
The fact that you commute daily to the US could help for residency purposes if you wanted to remain in the US but in your case you now reside in Canada at return to Canada daily so its going the other way you are now a resident of Canada since May and need to file in Canada all the income you earn since May 10.
You will of course still file your 1040 in US as married but can elect to file as Married filing seperately as you stated.
The fact that you commute daily to the US could help for residency purposes if you wanted to remain in the US but in your case you now reside in Canada at return to Canada daily so its going the other way you are now a resident of Canada since May and need to file in Canada all the income you earn since May 10.
JG