My fiance is applying for a K-1 Visa. His interview isn't until the end of October. Assuming he is approved I need to know how this affects us tax-wise in a couple of different scenarios.
If he comes here and we get married in November or December, how will that affect us when we have to file taxes for 2006? Will we have to claim one another's incomes on each countries tax forms even though we marry so close to the end of the year?
OR
Would it be better for him to just come here in November or December and live with me then get married in January 2007 (still within the 3 month time frame required for K-1 Visa) and start the year fresh?
Lastly, if he does come here in November or December and we don't marry until January, will that create any problems or difficulties for him to file his 2006 taxes in Canada?
Any help is greatly appreciated. I'm just completely confused. Thanks!
Fiance visa-Need Tax help
Moderator: Mark T Serbinski CA CPA
First for US taxes.
If you marry before the end of the year, then YOU will have to file married, not single. Since you would generally pay maore taxes married filing separately than married filing jointly, it would be better (but more complicated) to file married jointly, reporting ALL his 2006 income, and then exclude his Cdn wages by form 2555, and use foreign tax credits on any other Cdn income he might have. The net result would be that you pay the married tax rate on your US income (yours, and his, if any), and nothing on his Cdn income from 2006.
If you don't marry until 2007, then your return will look the same as last year's. He would probably simply file a 1040NR for the period of time he lived in US in 2006. in 2007 you would file a joint 1040.
For canada: there really is no difference regardless of what he does with you: what counts his the date that he LEAVES canada. This will end his Cdn taxability on non-Cdn income., He will fill out a regular tax return for his current province, but follw the special instructions outlined in the "Emigrants Guide" from CRA.
Under no circumstances, unless you move to Canada, will you have to file a Cdn tax return.
If you marry before the end of the year, then YOU will have to file married, not single. Since you would generally pay maore taxes married filing separately than married filing jointly, it would be better (but more complicated) to file married jointly, reporting ALL his 2006 income, and then exclude his Cdn wages by form 2555, and use foreign tax credits on any other Cdn income he might have. The net result would be that you pay the married tax rate on your US income (yours, and his, if any), and nothing on his Cdn income from 2006.
If you don't marry until 2007, then your return will look the same as last year's. He would probably simply file a 1040NR for the period of time he lived in US in 2006. in 2007 you would file a joint 1040.
For canada: there really is no difference regardless of what he does with you: what counts his the date that he LEAVES canada. This will end his Cdn taxability on non-Cdn income., He will fill out a regular tax return for his current province, but follw the special instructions outlined in the "Emigrants Guide" from CRA.
Under no circumstances, unless you move to Canada, will you have to file a Cdn tax return.
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