Hi,
I have a question regarding HOH filing status.
Background:
Cdn citizen married to Cdn living in Canada. Work in US on TN. Wife works in Canada. I live with my wife and 2 kids in Canada. My 2 children were both born in the US and have dual citizenship.
Before our children, my tax preparer used MFS then she changed to HOH once we had our first child. I was a bit dissapointed that we weren't using the ITIN for my wife that was such a hassel to get.
My question is this: Am I really entiteled to be using the HOH filing status? When I was reading through the strict requirements it mentions among other things that you have to be unmarried or 'considered unmarried'.
Do our circumstances fall into the 'considered unmarried'??? From what you know about me do you think I qualify for filing HOH?
Thanks in advance,
Chris
Head of Household
Moderator: Mark T Serbinski CA CPA
Unless your children and your spuse live in different households, you cannot be considered head-of-household. It is OK to treat a Cdn spouse in canada as meeting "considered unmarried", but its the children living with you and apart from your wife that would make you hoh.
Are you able to use up all your US tax on your Cdn tax return, even after maxing out your RRSP? If not, I'd venture that your accountant has been filing incorrectly the whole time. MFS costs you too much tax, and HoH is not permitted from how you dewcribe you living arrangement.
You should have ben filing a 1040NR using article XXV. Does your acct do both your returns
Are you able to use up all your US tax on your Cdn tax return, even after maxing out your RRSP? If not, I'd venture that your accountant has been filing incorrectly the whole time. MFS costs you too much tax, and HoH is not permitted from how you dewcribe you living arrangement.
You should have ben filing a 1040NR using article XXV. Does your acct do both your returns
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
I haven't owed any canadian tax except for the OHIP "levy". I have been putting money into my employer's 403b and minimal RRSP contributions.
My accountant files a 1040NR under the tax treaty article XXV although there is also a 1040 attached but i'm not sure why. The 1040 has "article XXV non disc. statement only" written on top of the first page. This return is the one with the HOH checked but the 1040NR has married resident of canada checked.
My accountant files a 1040NR under the tax treaty article XXV although there is also a 1040 attached but i'm not sure why. The 1040 has "article XXV non disc. statement only" written on top of the first page. This return is the one with the HOH checked but the 1040NR has married resident of canada checked.
Seems like they are doing the right thing using the treaty. However to use that properly requires (which is to your benefit) that the 1040 be MFS.
And, if you follow my logic, the fact that you pay no Cdn tax means that you are paying too much US tax. You shoudl be reducing your US tax to a point BELOW your Cdn tax.
Mayne this year with your pension contributions deductible, this will now happen.
But you aren't HoH.
And, if you follow my logic, the fact that you pay no Cdn tax means that you are paying too much US tax. You shoudl be reducing your US tax to a point BELOW your Cdn tax.
Mayne this year with your pension contributions deductible, this will now happen.
But you aren't HoH.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best