I think I have been erroneously filing my taxes for the last 4 years. My husband I and married in teh US virgin islands in 2000. I am American and he is Canadian. For the last 4 years we have filed in our own countries, and I have filed as single. He filed in Canada as married, but there were no requirements for ITIN, and I was advised that I was correct in filing as single since he didn't earn any US money. We've lived apart for the last 2 years, and now I've just moved to Canada and begun filing for PR.
Do you know if I should file now as married filing separately?
Does he need to file in the US, too, and get an ITIN?
Or can we continue as we've been doing?
If we can't continue or existing way, do I need to go back and amend old tax returns?
Last question, if he does have to file in the US, even though he's never earned a dime there, does he have to file amended returns for 2000 to 2003, and will he have to pay taxes on his Canadian income?
Thanks! Sorry for all the questions. I was filing for an extension today, and I realized I may have been filing wrong all along.
status - single but married?
Moderator: Mark T Serbinski CA CPA
You were not entitled to file 'singly' once you married.
Whomever 'advised' you to file singly was wrong.
As to requirements for ITIN, you only need it if you claim him as an exemption, which you are quite entitled to whether he is in US or not, but you don't absolutely need to (pay more tax if you wish)...
You should either be filing married filing separately, or married filing jointly. Your tax returns from the year you married 'til now are wrong, and you *probably* have underpaid, and will have tax and penalties.
HE does not have to file in US, since he is not a US citizen or Green card holder (i presume), and is a Cdn resident.
But you do need to file in US forever (in fact, ever since you spouse moved to Canada, you should have filed there too).
You need a pro to look over you past 4 years in US , and past 2-3 years in Canada.
...and the the person shouldn't be the one who has lead you completely down the garden path.
<i>nelsona non grata... and non pro</i>
Whomever 'advised' you to file singly was wrong.
As to requirements for ITIN, you only need it if you claim him as an exemption, which you are quite entitled to whether he is in US or not, but you don't absolutely need to (pay more tax if you wish)...
You should either be filing married filing separately, or married filing jointly. Your tax returns from the year you married 'til now are wrong, and you *probably* have underpaid, and will have tax and penalties.
HE does not have to file in US, since he is not a US citizen or Green card holder (i presume), and is a Cdn resident.
But you do need to file in US forever (in fact, ever since you spouse moved to Canada, you should have filed there too).
You need a pro to look over you past 4 years in US , and past 2-3 years in Canada.
...and the the person shouldn't be the one who has lead you completely down the garden path.
<i>nelsona non grata... and non pro</i>
Thank you, this is EXTREMELY helpful. I will need a tax pro for amended returns, and I appreciate the advice.
I hope you don't mind, but I have a couple questions.
If I claim my CDN husband as an exemption, do I file separately or jointly? Also, do I need to include his income if I claim him as an exemption?
As for Canada, he has been stating he is married for his CDN tax returns with my name as the spouse; however, we have never included my income since it was all earned in the US. Does this sound correct?
Thank you again. I'm learning that bad is advice is far worse than NO advice
I hope you don't mind, but I have a couple questions.
If I claim my CDN husband as an exemption, do I file separately or jointly? Also, do I need to include his income if I claim him as an exemption?
As for Canada, he has been stating he is married for his CDN tax returns with my name as the spouse; however, we have never included my income since it was all earned in the US. Does this sound correct?
Thank you again. I'm learning that bad is advice is far worse than NO advice
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">If I claim my CDN husband as an exemption, do I file separately or jointly? Also, do I need to include his income if I claim him as an exemption?<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
You can only claim him as an exemption if you file jointly (MFJ), reporting his income. You are free to then exclude his Cdn wages with 2555.
Otherwise, you file by yourself (married filing separately, MFS), your income only, no exemption for him. The only way he could be claimed as an exemption in such case is if he had NO income.
The correct (lowest taxed) way for you to file for the past 4 years is MFJ, reporting ALL of you (and your spouse's) income, and then excluding HIS wages only by 2555.
The only other way is to file MFS, not including anything about spouse. This yields a higher tax rate, and sometimesd denies you some deductions, credits, etc. There usually is a price to pay for filing MFS.
This will probably also affect you state tax returns.
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">As for Canada, he has been stating he is married for his CDN tax returns with my name as the spouse; however, we have never included my income since it was all earned in the US. Does this sound correct?<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Obviously not. What he is in act stating is that you made NO income, which is false. (this is the box on the front page of Cdn return asking for spuose's income) Hopefully he has not 'benefitted' on his returns from making this claim of no income (ie. getting GST credit, getting spousal deduction, etc, all of which he is not entitled too since you do have income.
The mere fact that your husband lives in Canada means that you must file a report in Canada, and report your income there too.
When you go back to fix this, be clear to use the phrase "deemed non-resident" when describing your situation. This will allow you to exempt all your US-source income.
But this must be done proactively. One cannot claim to be 'deemed non-resident' without actully filing a return, taking the deduction, and getting CRA's blessing.
Your spouse would still have to correct his return to put your world income on page one, especially if it affects other lines of his return.
<i>nelsona non grata... and non pro</i>
You can only claim him as an exemption if you file jointly (MFJ), reporting his income. You are free to then exclude his Cdn wages with 2555.
Otherwise, you file by yourself (married filing separately, MFS), your income only, no exemption for him. The only way he could be claimed as an exemption in such case is if he had NO income.
The correct (lowest taxed) way for you to file for the past 4 years is MFJ, reporting ALL of you (and your spouse's) income, and then excluding HIS wages only by 2555.
The only other way is to file MFS, not including anything about spouse. This yields a higher tax rate, and sometimesd denies you some deductions, credits, etc. There usually is a price to pay for filing MFS.
This will probably also affect you state tax returns.
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">As for Canada, he has been stating he is married for his CDN tax returns with my name as the spouse; however, we have never included my income since it was all earned in the US. Does this sound correct?<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Obviously not. What he is in act stating is that you made NO income, which is false. (this is the box on the front page of Cdn return asking for spuose's income) Hopefully he has not 'benefitted' on his returns from making this claim of no income (ie. getting GST credit, getting spousal deduction, etc, all of which he is not entitled too since you do have income.
The mere fact that your husband lives in Canada means that you must file a report in Canada, and report your income there too.
When you go back to fix this, be clear to use the phrase "deemed non-resident" when describing your situation. This will allow you to exempt all your US-source income.
But this must be done proactively. One cannot claim to be 'deemed non-resident' without actully filing a return, taking the deduction, and getting CRA's blessing.
Your spouse would still have to correct his return to put your world income on page one, especially if it affects other lines of his return.
<i>nelsona non grata... and non pro</i>