Wife in US on H4, working in Canada during the summer

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canuck
Posts: 18
Joined: Wed Feb 23, 2005 11:47 am

Wife in US on H4, working in Canada during the summer

Post by canuck »

My wife has been living in the US on H4 since May 2004. We have been filing as US tax residents, and she is going to Canada this summer to work for 2 - 3 months. For our next tax return, if I'm not mistaken, we just add her income as foreign income, including taxes paid as foreign tax credits. Does she need to file a non-resident return to Canada or ?? She will most likely make less than 10K.

Thanks.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

She will of course have to file a Cdn tax return, since she is getting Cdn-source employment income. If it is more than $10K she will owe fed/prov tax on the income

If she earns less than C$10K. she will exempt this income from Cdn tax, and get all her tax witholding back in the spring.

She will report all the wages as income on 1040, and use whatever final tax (if any), plus EI and CPP as a credit.
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
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

... if her only cdn income is from these wages, then she will file the same tax return as a resident of the province she works in (following the rules outlined in the non-resident tax guide).
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
canuck
Posts: 18
Joined: Wed Feb 23, 2005 11:47 am

Post by canuck »

Thanks as always, nelsona
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