Hi All,
I've done some reading throughout the forum regarding my subject (thank you to all who have put up valuable information), and now I want to ensure I have this right.
My story (in a nutshell) - My wife, US Citizen, left her job in the US and moved to Canada to be here with me. She will not be working here yet as she is still under a visitor visa until she gets PR.
Here is what I've gathered (please correct anything that is wrong)
For 2012 taxes, I will file in both Canada and the US (at both State and Federal level), even though she is not going to earn any income in Canada this year.
Taxes paid in the US will be used as a Foreign Tax Credit on the Canadian side (side question - what is the form for this?)
Going forward, she will continue to file in the US at the Federal Level to maintain her US Citizenship, but not at the State Level because she will no longer live there.
For me, as the Sponsor, I can claim her as a dependent AND as a spouse. For 2012, the amount I can claim will be drawn down by the income she earned at the start of the year, correct?
Also, does anybody have any info about transferring the 401K to an RRSP? I ran it past my financial planner briefly, and he told me it wasn't worth the hassle and to just maintain it as a 401K. Would love another opinion about this.
Thanks in advance!
CF
Need Tax Help: US Citizen moved to Canada
Moderator: Mark T Serbinski CA CPA
Hi - I certainly don't have the answers to all of your questions:
To receive a foreign tax credit for foreign source income, you need T2209 from the CRA.
Regarding status as a dependent - In Canada you can only claim the "spouse amount" once - even if you have another dependent relative living with you. To qualify for the spousal amount, your spouses income must be less than the "basic personal amount" (about $10,500 or so) - so you're correct.
To receive a foreign tax credit for foreign source income, you need T2209 from the CRA.
Regarding status as a dependent - In Canada you can only claim the "spouse amount" once - even if you have another dependent relative living with you. To qualify for the spousal amount, your spouses income must be less than the "basic personal amount" (about $10,500 or so) - so you're correct.