Will I pay more tax if I became an US citizen?

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jenny2010
Posts: 4
Joined: Thu Jan 14, 2010 4:09 am

Will I pay more tax if I became an US citizen?

Post by jenny2010 »

My husband is US citizen and I am Canadian. Currently living in California and able to apply for the US citizenship next month. I will return to my job in Canada after I received my US citizenship. And both of us will be living in Canada, my husband will commute to his job from Canada to US. Our total income is around $160,000 US, we have one child and we will renting out our California home. In my situation, will I pay more tax if I became a US citizen?
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

I don't see how you would pay more tax by taking out citzenship.

Since your husband will file in US, it will be beneficial to file jointly even if you weren't citizen, thus reporting your Cdn income (actually, you would exclude the income using 2555).

Even if it ends up that you pay a very little amount of US tax (which I doubt), you would have anyways whether you were citizen or not, due to filing jointly to reduce your husband's tax.

Aside from taxes, it makes so much more sense for you to be a US citizen, considering yor child is a US citizen. It is a protection for you, should things get dicey in your marriage for one thing. It is difficult to maintain GC while living in Canada for any length of time, and if you lose it, you would be in the situation where hubby and child can freely move to US and you can't. Get my drift?
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
jenny2010
Posts: 4
Joined: Thu Jan 14, 2010 4:09 am

Post by jenny2010 »

Thank you for your info, now I can see the benefit of getting the US citizenship!
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