Income tax question

[Kess]

I know I have quite a few months before I have to worry about this but I was wondering if anyone has any experience with Canadian Income tax while waiting for the PR process to finish?

As the sponsor, I live and work in Canada and pay income tax to CRA. Because I just got married in May of this year, I have to declare that my status has changed to Married when I do my income taxes next year. My husband and I do not have any joint finances (neither of us give money to the other for support). What I am worried about is having to declare his income from the US and having to pay taxes on it.

I've tried looking on the CRA website but haven't found anything helpful yet. (I'm not a Canadian living in a foreign country, etc). Any suggestions would be appreciated or where to look.

 

[iarblue]

Well when i did my taxes this year i had to claim married then i had to show proof of her income as well.Then just recently i got a letter from them,sometimes they are so stupid.The letter saysPlease send the following info....
Your spouses or common law partners name and social insurance number.
Awritten document,signed both by you and your spouse,confirming your marriage and the date the union started.
We also need to know the amount of your spouses 2009 income so that we can calculate your credit.If this individual immigrated during or after 2009 we need the date of entry and the world income earned before he/she came to Canada (if not already provided)with the amount converted to Canadain dollars.


So this is the letter i just got from them this month hopew this helps your understanding.

 

[Kess]

Yeah sounds like I'm going to be screwed over. I'm making sure my employer continues to deduct at the highest rate (which I think is for single) just incase. I hope that I don't have to pay tax on income that's been taxed in another country (and that I don't receive any of).

 

[iarblue]

No they wont double tax,and when i told them that she has not immigrated yet they said to send a letter stating that she has not landed yet.So im thinking that you dont have to claim it until he has landed.When i called them the guy said to send them a letter stating that she had not landed yet and was expected this year,so he did not say i had to include her income in the letter.

 

[minna]

As a dual citizen, and the daughter of a dual citizen, I am fairly confident that Canada does not "double dip" that is to say, that you may have to declare your husband's american earnings, but I don't think they are taxable in canada, as long as he can show that he has already been taxed on those earnings in the US (i.e. pays his taxes). I am by no way an expert, but this is just what I remember - an accountant that knows both canadian and us tax code will likely have the answers you're looking for.

As a sidenote, your husband will have to continue to pay american taxes on his canadian earnings once his visa is approved and he joins you in Canada. This I know for sure.

 

[annieann13]

As I know if you haven't been living together (your husband is not landed yet), you don't have to claim your status with CRA. Once he joins you in Canada, you /he supposes to change your status with CRA.

Also, Canada and US have similar taxes rules (income worldwide), they won't deduct doubly as long as you can provide proofs that you already pay taxes in that country (US) in order to submit your tax in Canada.

 

[toby]

As a sidenote, your husband will have to continue to pay american taxes on his canadian earnings once his visa is approved and he joins you in Canada. This I know for sure.

You will have to declare your Canadian income in your US tax return, less any taxes payable to Canada for that income. This is to ensure that you are not double taxed on the same income. The logistics -- how to get poof of the taxes paid to Canada in time to file your US tax return is something I don't know.

Maybe what you have to do is calculate your Canadian taxes, deduct them in your US tax return, file the US return on time, and say in a cover letter you will provide Canada's Assessent notice as soon as possible.