To start, I've done some searches, but I'm not convinced I have all the answers I need, so I'm hoping somebody can spell it out for me.
My wife is a US citizen, and moved in June 2012 to live with me in Canada. All her income was earned in the US.
Since it's been more than 183 days, I know she has to file in both Canada and the US.
She has a very basic return (employment income, tuition, 401(k) rollover to IRA).
My questions are simple
a) Does she need to do anything different for her US filing? Or would she file as per usual?
b) Since she did not earn any money in Canada, I presume the only form she'll have to fill out is a T2209 for her return for this year. Is this right? Also, just because i'm unsure: what if she receives a refund from the IRS? Obviously she won't be filing for a FTC because she won't have paid foreign tax - so is the refund reported as income?
c) On my taxes, with the exception of now claiming a spouse credit, is there anything different that I have to do?
I hope that this is something that can be easily explained since I don't think it will be too complicated process
Thanks in advance!
Wife is a US Citizen living in Canada. Need (basic) help!
Moderator: Mark T Serbinski CA CPA
1. It doew not matter how many days she has ben in canada. She lives here and thus has to file, even if she arrived on dec 30th.
2. She need only report income earned AFTER arrival in Canada. Her rollver is not considred income in either country, as long as it was not rolled into a roth.
a) For US , same as always, except that she is married
b)she has to report all income earned after the date she arrived in Canada, regardless of US or other source. if she recieved money after the date of arrival, she must repirt it in Canada too.Tax refunds are not income.
c) merely report her income for the year. I'll get back to you as to what income you should report, her total year income or just her post-arrival income.
2. She need only report income earned AFTER arrival in Canada. Her rollver is not considred income in either country, as long as it was not rolled into a roth.
a) For US , same as always, except that she is married
b)she has to report all income earned after the date she arrived in Canada, regardless of US or other source. if she recieved money after the date of arrival, she must repirt it in Canada too.Tax refunds are not income.
c) merely report her income for the year. I'll get back to you as to what income you should report, her total year income or just her post-arrival income.
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
You should read the "Newcomer" guide from CRA for her taxes etc the first year.
It would be best if she files a return, and gets in the system. You would indicate her net income from that return on your return in the spousal information on page 1.
It would be best if she files a return, and gets in the system. You would indicate her net income from that return on your return in the spousal information on page 1.
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 wasn't clear about one thing - she's not a resident yet. So no SIN number, no nothing.
Correct me if i'm wrong, but I thought the "sojourning > 183 days" rule applied to worldwide income earned in the calendar year (I'm going back to my Canadian tax classes while a student)
I will definitely take a look at the newcomer guide to see if it provides more clarification.
I will await your answer to question C as well - you've been a great help thus far!
Correct me if i'm wrong, but I thought the "sojourning > 183 days" rule applied to worldwide income earned in the calendar year (I'm going back to my Canadian tax classes while a student)
I will definitely take a look at the newcomer guide to see if it provides more clarification.
I will await your answer to question C as well - you've been a great help thus far!
I can't seem to find the edit button - ignore my last message!
I read the newcomer guide and it confirms what you said (clearly I didn't remember too much from the FTC section)
So that being said, it seems I'll be filing a $0 return for her, w/o a SIN, just to get her in the system
Will still await your confirmation for question C!
Thanks again!
I read the newcomer guide and it confirms what you said (clearly I didn't remember too much from the FTC section)
So that being said, it seems I'll be filing a $0 return for her, w/o a SIN, just to get her in the system
Will still await your confirmation for question C!
Thanks again!
She is a resident. You said she moved june 21 to canada. That makes her resident from taht date.
Sojouners are for those who live elsewhere ALL the time, but spend a lot of time in Canada (reverse snowbirds,if you will). They are "deemed residents".
Your wife is a resident, a newcomer. With an arrival date of june 21. You should be getting her SIN asap.
I answered (C) already: the amount she reports on her Cdn return.
Sojouners are for those who live elsewhere ALL the time, but spend a lot of time in Canada (reverse snowbirds,if you will). They are "deemed residents".
Your wife is a resident, a newcomer. With an arrival date of june 21. You should be getting her SIN asap.
I answered (C) already: the amount she reports on her Cdn return.
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