Living in Us and working in Canada

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

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neiks
Posts: 6
Joined: Mon May 02, 2005 3:01 am

Living in Us and working in Canada

Post by neiks »

Would like some info in regards to my future tax situation.

I am a Canadian citizen planning on "living" with my future husband in the US after our marriage.
I will be applying for legal alien resident status of the US.
I will continue to work at my government job in Canada.
I will be maintaining a residence in Canada.
My main banking institution is in Canada as well as expenses, mortgage, and loans. I also have Canadian RRSP's and Canada Savings Bonds both which I will continue to contribute to.

My future husband is an American citizen that is in an agricultural parnership (farming).

Is there any advance preparation that we may need to take or things to think about and consider?

Will a "pre-nuptial" agreement have any affect on our tax situation?

Any advice on what to expect or do would be greatly appreciated.
nelsona
Posts: 16664
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Your CDn tax situation will not change, since (a) you will be working and living in Canad and (b) you areworking for Cdn Gov't, so even if you were working in US you would and living in US you be a demmed resident of Canada, so you will continue to report your world income to CRA.

Your will report as 'married', but merely state his world income on Page 1 or your return (he will not file in Canada unless he earns income there, or over 180 days there).

As a couple now however, both your US tax situations will change, as he will now file as MARRIED, and will either need to include you and your world income on his return, or file separately, and pay a higher tax rate. When yo join him on his return, you will be a US 'person' and thus have to report to IRS your foreign holdings and RRSP etc. This would happen in any event when you get a Green Card. You would report your Cdn income and then claim a tax credit

One BIG advantage that you will have is the ability to exclude your Cdn Gov't wages by the US-Canada treaty from IRS taxation (but probably not state taxaton). This is by article XIX.

The good news



<i>nelsona non grata... and non pro</i>
flames9
Posts: 50
Joined: Fri Apr 08, 2005 9:00 am

Post by flames9 »

For visa info check out http://www.visajourney.com Lots of good free advice and many Canadians are in similar situations. cheers
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