When did She become a resident?

[butlertl]

I married my Canadian wife last February in Florida. She returned to Canada and we started the CR-1 process. She received her green card at the end of Oct 2005.......and moved to the US on 27 Dec 2005. When did she become a resident of the US.....with her green card or during her move in December. She returned to Canada in January for family obligations and to finish up some projects at her old job. Can we use the January date for residence? This all has tax implications that I am trying to sort thru................Thank you for your help and advice.
_________________
T Butler

[Mark T Serbinski CA CPA]

Your wife became a U.S. resident when she obtained her green card.

However, you may find it beneficial to elect to have her treated as a U.S. resident for the entire year, and include her world income for the year, subject to exemptions and credits. This would allow you to file a joint return with her. Otherwise, she would need to file separately, AND would force her to itemize deductions.

You need to have the returns prepared both ways.

[butlertl]

If we consider her a US resident for the entire year....I assume she must file a Canadian return.....what would her departure date be for the Canadian return? She made about $90,000 CDN in 2005....up until the end of Dec 2005.......would we file in Canada and then file a joint return in the US for the whole year?

This really gets confusing.

Thanks

[nelsona]

Her departure date would be dec 27.

There is no need for the departure date and arrival date to coincide.

[butlertl]

Nelson....Does this sound right? My income - 135,000.....Canadian wife - 115,000......using Turbo Tax........used the Foreign Earned Income (I assume Form 2555) and she gets -$60,000 credit.........TurboTax says I now get back $26,000....that cannot be right. What am I missing?

Thanks

[nelsona]

She can't get a credit if she uses 2555...

With your salaries, I would be using a cross-border accountant. There is too much at play to rely on software.

[butlertl]

We live in N VA....is it allowed to ask for recommendations?

[flames9]

I'm a Cdn residing in the USA (perm resident) and on an immigration forum that I visit a fair bit, a couple (1 cdn the other American) Used our forum host to do the taxes and they were very pleased.

[butlertl]

Would that be VisaJourney? Will log in and check the post. Thanks

[flames9]

Yep that is the one. Wasn't that long ago, not sure exactly in the forum, but I'm certain it was there I read a positive response for Serbinski.