Hello Forum,
I am a Canadian PR holder and I have moved to Canada on 2nd July 2012. But my husband is still working in the US on H1B.
Neither of us are citizens of US nor Canada. My husband is planning to file taxes in US and I am planning to file in Canada.
Can someone please suggest how to go about this?
Thank You
Krista
Canadian PR and Husband working in US on H1B.
Moderator: Mark T Serbinski CA CPA
This situation is a little tricky, as your presence in Canada can make hime required to file Cdn taxes.
However, by avoiding visiting you in canada, nor spending much time there, he should be able to remain non-resident of canada. You would become resident as of july 2 2012, and would indicate this on your tax return. Lok at the Newcomers guide on the CRA website, as there is special requiremens in reporting your spouses income, to get the correct child credits etc, even though he is not required to file a Cdnm tax return.
He will of course still be filing a uS tax return, and is allowed to continue using you and your kids as dependants and jointly filing (which will result in lowering his US tax).
While in this situation, I would avoid starting any TFSA or RESP in your name, although RRSP would be fine.
However, by avoiding visiting you in canada, nor spending much time there, he should be able to remain non-resident of canada. You would become resident as of july 2 2012, and would indicate this on your tax return. Lok at the Newcomers guide on the CRA website, as there is special requiremens in reporting your spouses income, to get the correct child credits etc, even though he is not required to file a Cdnm tax return.
He will of course still be filing a uS tax return, and is allowed to continue using you and your kids as dependants and jointly filing (which will result in lowering his US tax).
While in this situation, I would avoid starting any TFSA or RESP in your name, although RRSP would be fine.
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
Just to clarify, he should MINIMIZE his visits to canada. Some ocasional vists would not be a problem. I'm talking every weekend, or months at a time.
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
[quote="nelsona"]Just to clarify, he should MINIMIZE his visits to canada. Some ocasional vists would not be a problem. I'm talking every weekend, or months at a time.[/quote]
Months at a time is not an options, but say two weekends per month. Sometimes a whole week that would be 4-5 times a year. would that matter ?
Months at a time is not an options, but say two weekends per month. Sometimes a whole week that would be 4-5 times a year. would that matter ?
[quote="nelsona"]This situation is a little tricky, as your presence in Canada can make hime required to file Cdn taxes.
However, by avoiding visiting you in canada, nor spending much time there, he should be able to remain non-resident of canada. You would become resident as of july 2 2012, and would indicate this on your tax return. Lok at the Newcomers guide on the CRA website, as there is special requiremens in reporting your spouses income, to get the correct child credits etc, even though he is not required to file a Cdnm tax return.
He will of course still be filing a uS tax return, and is allowed to continue using you and your kids as dependants and jointly filing (which will result in lowering his US tax).
While in this situation, I would avoid starting any TFSA or RESP in your name, although RRSP would be fine.[/quote]
Hi Nelsona,
Thank you for your prompt response. At this time I do not wish to invest in TFSA or RESP or any schemes.
1. Regarding reporting my spouse income in the US, will I have to provide any proof of income?
2. My husband is joint bank account holder and has SIN, in that case does he have to file jointly?
3. Due to the complexity, should I have a tax consultant help me file taxes or would turbo tax work for me.
4. If I had to take a job in 2013, how would that impact the filing jointly in the US.
Appreicate your time on helping with these.
Thank You
-Krista.
However, by avoiding visiting you in canada, nor spending much time there, he should be able to remain non-resident of canada. You would become resident as of july 2 2012, and would indicate this on your tax return. Lok at the Newcomers guide on the CRA website, as there is special requiremens in reporting your spouses income, to get the correct child credits etc, even though he is not required to file a Cdnm tax return.
He will of course still be filing a uS tax return, and is allowed to continue using you and your kids as dependants and jointly filing (which will result in lowering his US tax).
While in this situation, I would avoid starting any TFSA or RESP in your name, although RRSP would be fine.[/quote]
Hi Nelsona,
Thank you for your prompt response. At this time I do not wish to invest in TFSA or RESP or any schemes.
1. Regarding reporting my spouse income in the US, will I have to provide any proof of income?
2. My husband is joint bank account holder and has SIN, in that case does he have to file jointly?
3. Due to the complexity, should I have a tax consultant help me file taxes or would turbo tax work for me.
4. If I had to take a job in 2013, how would that impact the filing jointly in the US.
Appreicate your time on helping with these.
Thank You
-Krista.
Please don't use the "quote" buttoin, it merely confused the postings. I know what I wrote.
1. You could be aske to provide proof. To incorrectly report his income on your return, especilly for the receipt of CCTB or GST would be fraudulent.
2. No, this would not require him to file. There is no such thing as joint filing in Canada.
3. Ufile would work for you.
4. YOu should continue to file jointly, otherwise his US tax rate will be exorbitant.
1. You could be aske to provide proof. To incorrectly report his income on your return, especilly for the receipt of CCTB or GST would be fraudulent.
2. No, this would not require him to file. There is no such thing as joint filing in Canada.
3. Ufile would work for you.
4. YOu should continue to file jointly, otherwise his US tax rate will be exorbitant.
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 have to provide his 2012 net income from the numbers on his 1040.
Don't confuse tax software, with netfiling. All software can generate a paper return. Whether or not you can netfile may require info from previous tax return, which would make you inelible.
Netfiling in the first year is pretty unusaul, but, I guess you'll find out.
If you fail to report your husbands net income when claiming CCTB and GST, that is fraud.
Don't confuse tax software, with netfiling. All software can generate a paper return. Whether or not you can netfile may require info from previous tax return, which would make you inelible.
Netfiling in the first year is pretty unusaul, but, I guess you'll find out.
If you fail to report your husbands net income when claiming CCTB and GST, that is fraud.
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
Krista, I would advise you to read more carefully the required forms for CCTB. As you see, iyour spouse will need to fill special request and income forms. see RC66SCH for example.
For 99% of US residents, their gross income in US would be the same amount their net income in Canada, so use that number. Do not use taxable income from 1040, since this is after deductions which do not apply to Canada.
As to any further info for these credits, I'm leaving this with you
For 99% of US residents, their gross income in US would be the same amount their net income in Canada, so use that number. Do not use taxable income from 1040, since this is after deductions which do not apply to Canada.
As to any further info for these credits, I'm leaving this with you
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
Thanks nelsona,
Your inputs are definately helpful.
I do not wish to hide any income or misinterpret information. I was just checking on the forum to make sure that I do not overstate or understate my spouse income.
We arrived in July 12 and I have not yet filed for Universal Child Credit nor the Child Tax Credit. I will be doing it sometime this month.
Your inputs are definately helpful.
I do not wish to hide any income or misinterpret information. I was just checking on the forum to make sure that I do not overstate or understate my spouse income.
We arrived in July 12 and I have not yet filed for Universal Child Credit nor the Child Tax Credit. I will be doing it sometime this month.