American/Canadian Taxes

[rhcohen2014]

I'm trying to figure out what's the best strategy for sharing my finances with my husband now that i am a PR. What i'm confused about is how to avoid my husband's salary or our comingled finances in Canada getting taxed by the US just because he's married to me. Does that actually happen? Is it safer to NOT share bank accounts in canada?

What are some resources that are available to understand how to not get "double taxed"? Feel free to share experiences navigating this issue.

 

[scylla]

You won't be double taxed if you file properly. When your husband files his US taxes, he will declare any taxes he has already paid against his income in Canada. This will avoid double-taxation. My husband files his Canadian taxes first (jointly with me) and then files his US taxes later.

Whether you share bank accounts in Canada or not has no impact. The process is still the same.

 

[scylla]

Sorry - got you and your husband reversed. Switch "your husband" with "you".

 

[rhcohen2014]

Whether you share bank accounts in Canada or not has no impact. The process is still the same.

thanks!

even though canadian banks are "required" to report any bank accounts suspected of being held by a us citizen? my concern is having a joint account will allow the irs to screw me on taxes, and tax me differently because if it.

and the IRS doesn't go after you, the canadian, at all to pay anything? Oh also, does your husband file as married or single in the US? My US accountant advises me to continue to file as single because otherwise it's a PITA to file with a non-us spouse. come to think of it, is it even possible to file as a couple in canada AND single in the us?

 

[lokyy]

i was talking about this to my wife and its crazy if i have to file income tax in the usa and in canada too? i better become UFC champion because that would be a lottt of money to pay!!!!!
i think either way we're screwed because yes even if you have a joint acount with your spouse the irs can still see the info on the american so,,,best choice,,,keep your money at home lol(or under the pillow)

 

[lokyy]

You won't be double taxed if you file properly. When your husband files his US taxes, he will declare any taxes he has already paid against his income in Canada. This will avoid double-taxation. My husband files his Canadian taxes first (jointly with me) and then files his US taxes later.

Whether you share bank accounts in Canada or not has no impact. The process is still the same.

then your husband pays a lottttttt of money right?

 

[jonular]

Your husband (only a Canadian citizen) does not have to file a US tax return.

You (American citizen + PR) do have to file a US tax return. The first $97,000 or so of employment income will be exempt from any US taxes provided you lived in Canada throughout the year. Other types of income become more complicated and would have to be considered on a case by case basis.

 

[Amadan123]

Individuals with Canadian and U.S. tax requirements may find valuable tax information on www.madanca.com .

 

[keesio]

This thread from earlier in the year has some good info:
http://www.canadavisa.com/canada-immigration-discussion-board/-t184395.0.html

 

[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.

 

[keesio]

Assuming your husband is not a US citizen or green card holder, he would just file Canadian taxes and would list that he is married when he files his Canadian tax return. Since you don't have a SIN number yet, he would just leave that part blank (note that there is no "joint filing" in Canada). For you, you would just file a US tax return and also state that you are married and leave the part for his SSN blank. Note that you should file "married but separately".

Since he lives and works in Canada and I assume you live and work in the US, your tax situation is pretty simple. Both of you file as you always did in the past with the except that in the places where they ask you if you are married, you say "yes" and leave the SSN/SIN field blank. No need for H&R block unless you normally use them for your standard return.

 

[Snowisland]

Yes he was born in and lives in Canada and is not a green card holder or US citizen. I was born and live in US.

Thanks so much, I usually use Turbo Tax so I will do it again this year.

 

[keesio]

Yes he was born in and lives in Canada and is not a green card holder or US citizen. I was born and live in US.

Thanks so much, I usually use Turbo Tax so I will do it again this year.

That should be fine. Nothing really changes until you actually get your PR, move to Canada and start working there. Then the real nightmare begins

 

[ovasquez1]

Assuming your husband is not a US citizen or green card holder, he would just file Canadian taxes and would list that he is married when he files his Canadian tax return. Since you don't have a SIN number yet, he would just leave that part blank (note that there is no "joint filing" in Canada). For you, you would just file a US tax return and also state that you are married and leave the part for his SSN blank. Note that you should file "married but separately".

Since he lives and works in Canada and I assume you live and work in the US, your tax situation is pretty simple. Both of you file as you always did in the past with the except that in the places where they ask you if you are married, you say "yes" and leave the SSN/SIN field blank. No need for H&R block unless you normally use them for your standard return.

hello...

That is how I use to do my taxes..but I received my PR in august 2014 and moved to Canada...I worked the last three months of the year (2014) in Canada...didn't make a lot...no benefits but now I'm wondering how to do my US taxes....I'm assuming a do joint taxes with my husband for Canada and then do a separate US taxes for myself...but how would I file that taxes? I assuming its a simple process because all I would have are W2 forms from the US and one from Canada...do I include that job from Canada on the US tax? Can anyone recommend me a good tax accountant in Toronto?

 

[keesio]

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.