American/Canadian Taxes

[Snowisland]

I live in US and will marry my Canadian fiance in December. I will return home to the US and he will apply to sponsor me for PR after we file our taxes because he needs the Form C for the PR sponsor application. I will be outland and not move to Canada until get landing permission.

He works in Canada where he lives, full time and has RRSPs, I work in US, part time but have a pension check every month also.

My question is, do we both file in our respective country as married? I do not have a Canadian social security number and he does not have a US social security number. I know there is a treaty between the US and Canada, I just don't know if we both should file as married, and do we both file forms for Canada and US tax reporting? Is H & R block any good at this? I could use them if they are. Thank you.

 

[ovasquez1]

There are no "joint filing" of taxes in Canada like what exists in the US. Your husband and yourself file Canadian taxes individually and reference each other (provide the SIN number of your spouse). That way your husband can claim some benefits.

Note that for your Canadian taxes, CRA just cares about your income from the date you became a PR. Note that this includes any investment income you may have in US bank accounts.

Once you file your Canadian taxes, you can file your US taxes (file married but separate). You would need to list the Canadian income (which the US will consider foreign income) but you can either use the FEIE or FTC to avoid paying any US taxes on your Canadian income. If you had over 10K combined in funds in Canadian bank accounts, you also need to file an FBAR to the US Treasury (it is separate from the tax return you file to the IRS).

I live in Toronto and have an accountant. Pretty good but it is really expensive (~1K a return) but my returns are a little complex so it might be overkill for what you need. But if I can provide their info if interested. H&R Block can do them starting at $350 but the number of accountants they have in Canada that can cross border taxes are limited so you need to book early.

Thanks for the quick reply...that helps alot...

In the US.... I did my own taxes but I'm unfamiliar with Canadian tax law and protocol...are there any books like "Canadian taxes for dummies" or you tube videos or information packages or seminars that I can attend or read to learn more?...I would like to learn enough to try to do my own taxes...or at least have a general understanding of how it works and differs from US taxes...

 

[ovasquez1]

Ridiculous Question: If a US citizen/PR of Canada wins the lotto..like 649 or Lotto Max...they receive the whole amount but would still have to file that at tax time and be taxed by the US for it?

 

[keesio]

Thanks for the quick reply...that helps alot...

In the US.... I did my own taxes but I'm unfamiliar with Canadian tax law and protocol...are there any books like "Canadian taxes for dummies" or you tube videos or information packages or seminars that I can attend or read to learn more?...I would like to learn enough to try to do my own taxes...or at least have a general understanding of how it works and differs from US taxes...

Canadian taxes can be pretty straightforward. I just use TurboTax or something like that. You can get the TurboTax with the built in tutorials.

It is the US taxes for foreign expats that is the real tricky one

 

[keesio]

Ridiculous Question: If a US citizen/PR of Canada wins the lotto..like 649 or Lotto Max...they receive the whole amount but would still have to file that at tax time and be taxed by the US for it?

Yes. It is very likely you will have to pay US taxes on the winnings because lottery winnings are not taxed in Canada. So the IRS will ding you to take their "fair share"

 

[ovasquez1]

Yes. It is very likely you will have to pay US taxes on the winnings because lottery winnings are not taxed in Canada. So the IRS will ding you to take their "fair share"

Thanks for all your help...

I thought so....

 

[Panamai]

Is 'common-law' considered married for US tax purposes?