Just submitted the MFJ return for US for US husband and Canada wife. Happy to save some money
Trying to file Canada tax files with T2209 for foreign tax credit for US wage, realizing that US husband owes a looooot to CRA.
Basically, the money saved by MFJ from IRS now turns into the hand of CRA.
Any ways to lower Canadian tax? RRSP deduction seems not helpful.
To declare US husband as non-resident? Not sure. Visit Canada for 3-4 time a year, 1-2 weeks each time, having Canadian spouse and kids.
Any recommendations?
How to lower Canadian tax for dual residents of US and Canada
Moderator: Mark T Serbinski CA CPA
Re: How to lower Canadian tax for dual residents of US and Canada
Since US husband has to pay CRA 10k for tax owing. It's a large amount.
When he file US return, can he put this amount on itemized deduction form 'Other tax' line, or put on 1116 foreign tax credit?
Thx
When he file US return, can he put this amount on itemized deduction form 'Other tax' line, or put on 1116 foreign tax credit?
Thx
Re: How to lower Canadian tax for dual residents of US and Canada
As you are finding out, lowering the US tax bill does not lower your overall tax. This is the situation faced by most CDn residents with substantial income from US.
You need to find things that will lower the CDn tax. I do not understand why an RRSP deductible contribution would not do this.
If you want to claim he is non-resident, then YOU should visit him, not HE visit you. By him regularly visiting you in Canada, he is confirming that his centre of vital interest is in Canada, which prevents him from declaring himself a "deemed non-resident".
You need to find things that will lower the CDn tax. I do not understand why an RRSP deductible contribution would not do this.
If you want to claim he is non-resident, then YOU should visit him, not HE visit you. By him regularly visiting you in Canada, he is confirming that his centre of vital interest is in Canada, which prevents him from declaring himself a "deemed non-resident".
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