I am a US citizen, still working in Buffalo, NY commuting daily from southern Ontario. I live there with my Canadian wife and her two kids and expect to have my permanent residency completed very soon. My wife and I were married in April of last year and filed our tax returns in our respective countries. My return went as usual but she had to pay even though she has a moderate income from her own business and custody of her two children. It was explained to her that my income counts towards raising the children and she therefore doesn’t get the tax credits.
My confusion lies in the fact that I also did not get tax credits, making this a heavy penalty to pay for us as a couple.
How should we file when I have my residency? Did she get bad advice in reporting my income?
Any help is appreciated.
Tom
US citizen working in US, living in Canada
Moderator: Mark T Serbinski CA CPA
But to be clear, you did not pay any tax in Canada on your income, but your spouse paid higher tax on hers, because she loses some benefits for being married.
btw, di you file your 1040 as married separatey, or married jointly, You cannot file single anymore.
btw, di you file your 1040 as married separatey, or married jointly, You cannot file single anymore.
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 did not file in Canada since I have only been there as a visitor.
As for filing single, there is always the option on US taxes to file single or jointly when you are married.
Once I do file in Canada I thought they basically add taxes above my US taxes if I would owe more there but shouldn't we get credit for the children we are supporting?
As for filing single, there is always the option on US taxes to file single or jointly when you are married.
Once I do file in Canada I thought they basically add taxes above my US taxes if I would owe more there but shouldn't we get credit for the children we are supporting?
It’s not singly or jointly, it’s separately or jointly.
Separate usually gives you a little higher tax rate than when you were single, as you lose some deductions, so curious as to how you filed with your new circumstances.
As I said, you should also already be filing in Canada based on when you arrived in Canada, so you might want to correct this. It’s not based on your immigration status, it’s based on where you live, which is Canada.
As a couple you may be entitled to some UCCB but it is based on joint income. Other than that Canada doesn’t give much benefit for having children, especially for higher earning couples.
Canada will give credit on your cdn return for the us taxes you pay on your US wages.
Separate usually gives you a little higher tax rate than when you were single, as you lose some deductions, so curious as to how you filed with your new circumstances.
As I said, you should also already be filing in Canada based on when you arrived in Canada, so you might want to correct this. It’s not based on your immigration status, it’s based on where you live, which is Canada.
As a couple you may be entitled to some UCCB but it is based on joint income. Other than that Canada doesn’t give much benefit for having children, especially for higher earning couples.
Canada will give credit on your cdn return for the us taxes you pay on your US wages.
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