I am a US Citizen/Resident soon to be married to a Canadian Citizen/Canadian Resident. He lives and works in BC and plans to move to the US next year once he gets a waiver. Canadian tax issues aside, filing US "Married Jointly" would give us the best tax rate over "Married Separately" or waiting to get married and filing "Single" because I make significantly more than him and it would allow me to make itemized deductions for my home office.
I understand there is a tax treaty so that he shouldn't get taxed twice, but how does that work? Will my income be considered for his Canadian taxes like his is considered for my US taxes? Because we are filing jointly in the USA and I am not filing in Canada, how would he be credited taxes paid by either country? Would it be more cost effective to wait to marry until after Jan 1st?
Married Non-Resident Alien Canadian Taxes
Moderator: Mark T Serbinski CA CPA
Cdns generally pay more income tax than US, and if he files joint with you he gets to take credit for Cdn taxes and/or exempt his Cdn wages.
So, since he will not end up owing any US tax on his, and your taxrate will definitely drop, it would be wise to marry before Jan 01.
So, since he will not end up owing any US tax on his, and your taxrate will definitely drop, it would be wise to marry before Jan 01.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best