Thank you for such an informative forum/website.
I am a Canadian citizen and married my US-citizen wife in November 2018. We both earn money in our respective countries with no income in the other. I am self-employed and she works for an employer.
When she files her tax returns for 2018, we have to decide whether to file separately or jointly. As I understand it, if we file jointly, then I am being treated as a US resident for tax purposes in 2018. On your website re: Double Taxation, it reads "Under certain circumstances, such as where a part year resident of the U.S. elects to be taxed as a U.S. resident for the entire year, Treaty protection is not available." Does this mean that I will not be protected against double taxation if we elect to file jointly?
If we file separately, and with the recent change in personal exemption, is there any need to obtain an ITIN?
Thank you again for such a great forum!
Double Taxation if Filing Jointly
Moderator: Mark T Serbinski CA CPA
Re: Double Taxation if Filing Jointly
Your income would be protected from double taxation, either by using tax credits, and/or, more likely, excluding the wages by form 2555.
She will benefit from the lower MFJ taxrate, and your Cdn income will not be taxed.
Be careful though, by filing jointly, you become liable for the reporting of all your foreign assets, TFSA income trusts, PFICs, etc. Which can be such a headache that many avoid at all costs filing with their US-spouse.
She will benefit from the lower MFJ taxrate, and your Cdn income will not be taxed.
Be careful though, by filing jointly, you become liable for the reporting of all your foreign assets, TFSA income trusts, PFICs, etc. Which can be such a headache that many avoid at all costs filing with their US-spouse.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Double Taxation if Filing Jointly
Before 2018, anticipating this, I put all my money in a savings account and various checking accounts. I never incorporated.
When you mean foreign assets, do you mean just reporting the savings/checking accounts? Does life insurance have to be reported?
Thanks again!
When you mean foreign assets, do you mean just reporting the savings/checking accounts? Does life insurance have to be reported?
Thanks again!
Re: Double Taxation if Filing Jointly
Any foreign assets are subject to foreign reporting rules. Your financials don't appear to be too complicated, so I don't anticipate a problem. Just wanted you to know that US income taxation is often the least of one's worries when involving oneself with IRS as a foreigner..
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Double Taxation if Filing Jointly
Thanks! Appreciate the heads up!