Canadian Tax Question do we file together??

[lgg 2]

So, we get married at the end of November and then he goes back to the US and I stay in canada and we start our immigration process. So, when it comes tax time, how do we file? Our finances are not intermingled at all and I pay for my housing and everything on my own, as does he.

So when I file my Canadian taxes, and file as married what happens? is there a form you fill out to let the government know that you're in the process of immigrating and thus, don't live together yet?

Your help is VERY much appreciated.

[trailmix 77]

So, we get married at the end of November and then he goes back to the US and I stay in canada and we start our immigration process. So, when it comes tax time, how do we file? Our finances are not intermingled at all and I pay for my housing and everything on my own, as does he.

So when I file my Canadian taxes, and file as married what happens? is there a form you fill out to let the government know that you're in the process of immigrating and thus, don't live together yet?

Your help is VERY much appreciated.

Right or wrong, I will share with you what I did with our taxes (when we were both living in Canada).

I filed married filing separately for my U.S. taxes, my Husband did not file there as he had no status in the U.S. at that point - I did not include or claim him on my U.S. return as I had no U.S. income, therefore it would be pointless.

As for the Canadian taxes, your Husband obviously won't file and you can't claim him - and it depends on what type of software you use as to how you accomplish excluding him from calculating credits. Normally software will ask you (well at least ufile does) if you want to claim credits related to your spouse or not.

You will have to acknowledge the date you were married in the personal information section of the T1.

Not an all encompassing answer - but I noticed you posted this earlier here and got no response.

[lgg 2]

So, to be clear as, he files HIS taxes in the US, as married but filing separately... and I file MY taxes here in Canada as married but not claiming any of his credits or anything. Is that right? His income won't effect me as I'm not claiming anything?

Is there a form to go with my taxes that will show this? I just figure that while we're not living together and sharing income, we should'nt have to have our taxes impacted.

Thanks so much Trailmix... I just want to do things right and well and there's so much to learn.

[zyggy 9]

So, to be clear as, he files HIS taxes in the US, as married but filing separately... and I file MY taxes here in Canada as married but not claiming any of his credits or anything. Is that right? His income won't effect me as I'm not claiming anything?

Is there a form to go with my taxes that will show this? I just figure that while we're not living together and sharing income, we should'nt have to have our taxes impacted.

Thanks so much Trailmix... I just want to do things right and well and there's so much to learn.

YOu actually have an option. If you're on a K-1, you can opt to have yourself treated as a resident alien and file MFJ and exclude the foreign income, or your spouse can file as MFS. You choose the option that gives you the best tax treatment. If you are a permanent resident, you MUST file. Generally, filing as MFJ is the better bet tax wise.

For Canada, you file as married and when they ask for the SIN, you place US Citizen in the blank.

Edited November 19, 2008 by zyggy

[lgg 2]

OKay. ANSWERS. Since no one was able to give me a sufficient answer to this questions posted everywhere.

I just got off the phone with Canada Taxation. The answer to my question is:

When filing in Canada, you'll have to give Canada Tax the name of your spouse, date of marriage an how much they earn. This may effect your eligible refundable and non-refundable tax credits but you will NOT be taxed on his income. In the US, he can file as Married, filing separately. This way, the does his tax thing, I do mine and when we're living together, then we can do our taxes together and figure out that stuff. The thing is, he makes good mine, as do I and neither of us needs the tax credits or breaks that one would get so, I was merely trying to figure out how the cross border system worked.

This was the answer I was looking for... I figure someone else might be curious about this, this is your answer.

[trailmix 77]

OKay. ANSWERS. Since no one was able to give me a sufficient answer to this questions posted everywhere.

I just got off the phone with Canada Taxation. The answer to my question is:

When filing in Canada, you'll have to give Canada Tax the name of your spouse, date of marriage an how much they earn. This may effect your eligible refundable and non-refundable tax credits but you will NOT be taxed on his income. In the US, he can file as Married, filing separately. This way, the does his tax thing, I do mine and when we're living together, then we can do our taxes together and figure out that stuff. The thing is, he makes good mine, as do I and neither of us needs the tax credits or breaks that one would get so, I was merely trying to figure out how the cross border system worked.

This was the answer I was looking for... I figure someone else might be curious about this, this is your answer.

This is what I was telling you, but maybe I didn't state it very clearly?

But thanks for the info

[zyggy 9]

OKay. ANSWERS. Since no one was able to give me a sufficient answer to this questions posted everywhere.

I just got off the phone with Canada Taxation. The answer to my question is:

When filing in Canada, you'll have to give Canada Tax the name of your spouse, date of marriage an how much they earn. This may effect your eligible refundable and non-refundable tax credits but you will NOT be taxed on his income. In the US, he can file as Married, filing separately. This way, the does his tax thing, I do mine and when we're living together, then we can do our taxes together and figure out that stuff. The thing is, he makes good mine, as do I and neither of us needs the tax credits or breaks that one would get so, I was merely trying to figure out how the cross border system worked.

This was the answer I was looking for... I figure someone else might be curious about this, this is your answer.

Seriously... WHy on earth would you want to give the government more than they are entitled to. MFS is very disadvantageous. Do your taxes as MFJ first. Include your income and then exclude it with FOrm 8555. Then do it MFS. I'm very sure you'll find that filing as MFJ will result in a larger refund.

How about I give you this deal. I'll do your taxes and take the better tax situation as my fee = the possibility of a few thousand dollars in Zyg's pocket. It really is that beneficial.

Edited November 19, 2008 by zyggy

[lgg 2]

I'm SO sorry but you're going to have to tell me what the heck MFJ and MFS mean. I'll bet it's something really s imple but I just don't know!

[trailmix 77]

I'm SO sorry but you're going to have to tell me what the heck MFJ and MFS mean. I'll bet it's something really s imple but I just don't know!

= Married filing jointly, Married filing single - U.S. tax terms

[payxibka 10,047]

I'm SO sorry but you're going to have to tell me what the heck MFJ and MFS mean. I'll bet it's something really s imple but I just don't know!

= Married filing jointly, Married filing single Separate - U.S. tax terms

[lgg 2]

Hi there, Zyggy...

Saw your tax answer to me and wanted to thank you! Some more questions if you don't mind? My husband makes quite a large amount of money in the US. I do fairly well in Canada. We've not even begun our visa journey as we're waiting for our Marriage certifcate.

So... he's worried that I'll have to pay loads of taxes if I file with him or he'll lose a lot. how should be file? we haven't lived together yet or have supported one another yet?

Your help would be so great. Thanks.

[payxibka 10,047]

Hi there, Zyggy...

Saw your tax answer to me and wanted to thank you! Some more questions if you don't mind? My husband makes quite a large amount of money in the US. I do fairly well in Canada. We've not even begun our visa journey as we're waiting for our Marriage certifcate.

So... he's worried that I'll have to pay loads of taxes if I file with him or he'll lose a lot. how should be file? we haven't lived together yet or have supported one another yet?

Your help would be so great. Thanks.

might be a bit cumbersome but simply prepare it both ways and see which one is most advantageous

[MrLGG 0]

Seriously... WHy on earth would you want to give the government more than they are entitled to. MFS is very disadvantageous. Do your taxes as MFJ first. Include your income and then exclude it with FOrm 8555. Then do it MFS. I'm very sure you'll find that filing as MFJ will result in a larger refund.

How about I give you this deal. I'll do your taxes and take the better tax situation as my fee = the possibility of a few thousand dollars in Zyg's pocket. It really is that beneficial.

That's quite an offer ... but no!

As a follow up for those of you who also need to know this, I believe zyggy is correct (except its IRS Form 2555).

File as MFJ and then use form 2555 to exclude the spouses foreign income up to $87,500.

[saskswan 1]

I filed as the CRA told me too and I ended up losing big time. It doesn't help that I was a single parent before and basically still am. I raise my two daughters alone - no support from my husband. I lost my Child Tax benefit, GST rebate. Everything has been audited and even back to a year before we were married. They have now decided I don't owe any backpay on GST but I am still having problems with Child Tax Credit. I wish we had waited and gotten into the US before we married. It's not like it would matter if I were working but I am on Maternity leave and EI. So the Child Tax Benefit would sure help right about now!

As for the US - my husband filed - married filing seperate and he never had any issues. It did not affect him at all. Wish we could switch incomes! lol

[zyggy 9]

I filed as the CRA told me too and I ended up losing big time. It doesn't help that I was a single parent before and basically still am. I raise my two daughters alone - no support from my husband. I lost my Child Tax benefit, GST rebate. Everything has been audited and even back to a year before we were married. They have now decided I don't owe any backpay on GST but I am still having problems with Child Tax Credit. I wish we had waited and gotten into the US before we married. It's not like it would matter if I were working but I am on Maternity leave and EI. So the Child Tax Benefit would sure help right about now!

As for the US - my husband filed - married filing seperate and he never had any issues. It did not affect him at all. Wish we could switch incomes! lol

Whiel filing as MFS is the easier way from a paperwork perspective, it's not very beneficial from a tax situation. Filing as MFS almost always results in you giving more to Uncle Sam than you should. One should definitely do the exercise and figure the income tax both ways to see, but most often filing as MFJ gives the lowest tax exposure.

Edited December 12, 2008 by zyggy