US/Canada family living separately questions

[radeon]

Hi. Would really appreciate some help.

I'm on H1B in the US and will probably stay this way for a year or two. My wife got a job in Canada and moved there in August 2010. Both of us have a Canadian PR. She did have US income in the first half of 2010, and she was a resident alien in the U.S. (we filed a joint return for the past couple of years). Other than PR and wife in Canada I have no other ties. No bank accounts, SIN etc. Never lived there.

Trying to figure out taxes for 2010 and gather info on what to do for 2011.

I take it since she moved mid-year, we can't use form 2555 to take foreign earned income tax credit, which leaves 1116 to deduct taxes she paid in Canada from our joint worldwide income I'll report in a joint U.S. return for 2010, right? And in 2011 we'll be able to use 2555.

Now, I now next to nothing about Canadian taxes. I figured that I'm probably 'deemed non-resident' and she's a resident. I assume she reports both my and her U.S. income on her Canadian (newcomer?) tax form and then deducts my income completely somehow and takes some credit for taxes paid on U.S. income?

What does she do for GST? Report joint income and see if the still qualifies?

Thanks a lot!

[nelsona]

She can indeed use 2555 for her wages. She simply prorates the yearly exclusion for the period she was in canada. But it may be better to use 1116 anyways.

You are nothing for canada. Your wife is a newcomer, and only has to show your world income on page 1, so that she does not get any extra benefits that she is not entitled to.

There is no joint Cdn return, so you have nothing to report.

[radeon]

^ thanks a lot!