Canadian Citizen working in the US

skminhas · Post by **skminhas** » Wed Feb 18, 2009 11:33 am

I have a few questions regarding my taxes this year.

My husband works in the States and lives in Canada (citizen). He works on a TN visa.

He paid Federal, State and City Taxes in addition to Social security and Medicare in the US.

Is it best for him to file 1040 or 1040NR?
Would I include all the taxes (including Medicare and Social securitywhen determining the Foreign taxes paid in his canadian tax return?

I (his wife) work in Canada solely. We live in Canada. I do have an ITIN# so does our daughter and his mum.

Would it be better for him to file Single, married filing jointly or married filing separately?

What are the implications on claiming dependents in this US return if filing single and married filing separately? Can he claim his mum, me and our child as dependants?

nelsona · Post by **nelsona** » Wed Feb 18, 2009 11:41 am

He can't file singly: he is married. He can't file jointly unless he files a 1040 joint with you.

Since he lives in canada, he is likelt bast to file a section XXV 10504NR, whereby he calculates hos taxrate as if he filed 1040 with you, but only pays tax on the US wages he earned.

Then this tax, his state tax and his fica become eligible for foreign tax credit in US.

nelsona · Post by **nelsona** » Wed Feb 18, 2009 11:42 am

i meant eligible for foreign tax credit in canada, on his Cdn return.

nelsona · Post by **nelsona** » Wed Feb 18, 2009 11:42 am

lots of typos: 1040NR

skminhas · Post by **skminhas** » Wed Feb 18, 2009 12:32 pm

Thanks for the prompt reply.

So a regular 1040NR married filing jointly right? I'm sorry I am new at this.

Another question: (forgive my ignorance)

FICA = medicare tax and social security tax?

So what I would do is add up all the taxes, (federal+state+city+medicare tax+social security tax) - any refunds I calculate in the 1040 NR, state and city forms. Right?

What is section XXV 1040NR? Another schedule or some kind that I have to fill out?

nelsona · Post by **nelsona** » Wed Feb 18, 2009 1:22 pm

No. 1040NR cannot be filed jointly. Look at the form.

an article xxv 1040Nr is a treaty-based method of determining the taxrate for a married Cdn resident working in US, like the situation you face.

I have described this at length elsewhere.

skminhas · Post by **skminhas** » Wed Feb 18, 2009 2:41 pm

FICA = medicare tax and social security tax?

So what I would do is add up all the taxes, (federal+state+city+medicare tax+social security tax) - any refunds I calculate in the 1040 NR, state and city forms. Right?

nelsona · Post by **nelsona** » Wed Feb 18, 2009 3:54 pm

When i don't answer a quaestion, assume you are correct. You can look up fica definition on 'net, no?

skminhas · Post by **skminhas** » Wed Feb 18, 2009 8:36 pm

Thanks for all the help...you have saved me hours of research and uncertainty.