Hello,
I have reviewed some topics on this forum and want to clarify if this tax strategy is viable.
Situation:
*Spouse 1: US Resident since 11/2012, CDN citizen with green card
*Spouse 2: CDN Resident and citizen, no SSN/ITIN, has significant education tax credits (No tax payable this year)
*Maried in 2017
Tax Plan:
*Spouse 2 files canada tax, reports Spouse ww income, claims education tax credits
*Spouse 1 claims treaty benefits, files joint 1040 for whole year, claims exemption for Spouse 2, excludes foreign income with form 2225, attach form w7 for ITIN
Assuming this is valid, do I need to attach an addendum or write something on return indicating treaty benefits like when filing dual status return?
Thanks for help, your website is amazing resource.
CDN Greencard Holder & CDN Citizen Marriage 2017
Moderator: Mark T Serbinski CA CPA
I live in Texas. She still lives in Canada while we wait for immigration to go through. I haven’t moved.
I know we can file jointly, but I wasn’t sure if she would be entitled to the foreign income exclusion as a non-citizen without claiming treaty benefits.
It would be preferable to exclude income rather than claim the foreign tax credit because our US tax rate would be much higher than her Canadian one, and we want to leverage her education credits.
I know we can file jointly, but I wasn’t sure if she would be entitled to the foreign income exclusion as a non-citizen without claiming treaty benefits.
It would be preferable to exclude income rather than claim the foreign tax credit because our US tax rate would be much higher than her Canadian one, and we want to leverage her education credits.
Regardless of nationality or residence, she can use 2555 on her wages if she meets PPT (330 days out of US in 2017).
If not, then, yes, I would agree that she would need to use the treaty to use 2555.
If not, then, yes, I would agree that she would need to use the treaty to use 2555.
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