Filing Income Taxes

[payxibka 10,045]

If you need a good cross-border tax preparer, I can recommend David Levine at http://www.keatsconnelly.com. He helped me file an amended return this year. It was originally submitted by http://www.serbinski.com, and could have cost me an extra $65,000 in tax. (Where's the emoticon for fainting?)

This stuff isn't easy and even the experts don't always agree, as in my case. Be ready to pay $600 per return, U.S. and Canadian.

My only question about filing jointly is this: if your husband had no income, will he look like your dependent even though you don't claim him as one? Could this have an impact on getting his permanent visa later?

There should be no ramifications or impact on permanent residency if you file joint tax returns even if only one taxpayer has income.

The information previously provided in this thread (particularly by Aussie and Yodrak) has been accurate. While I am not an expert on the complexities of international taxation, I am a CPA.

Edited October 28, 2006 by fwaguy

[Kez/JWolf 6]

Taken from IRS publication 17 for tax professionals

What category of tax return you can file is dependent on you status at 12/31/05, if you are married on 12/31/06 then you and your spouse can file Married Filling Jointly or Married Filling Separately. There are advantages to filling MFJ even if your spouse has no income. based on the figuars for 2005 if you file MFJ your joint standard deduction is $10,000.00 + $6,400 in personal exemptions. If you file MFS its it $3,200... these are the amounts you are allowed to earn before tax is payable... There are also Foreign tax credits available for taxes paid in another country.... one thing to remember is that if you file MFJ it is both yours and your spouse worldwide income that has to be reported...

I can not give anymore detailed information here... there are many many Tax Professionals who can give you advice specific to your situation....

Kezzie

The $ amounts quoted above are from the Tax year 2005 NOT 2006 and are intended for example only.....

[Jersey Girl 2]

65K in additional tax?

I do not wish to hijack the thread, but it's important to know how Revenue Canada views former residents (myself) and may consider them taxable even later.

After I left Canada, I had to collapse my RRSP because neither E*Trade nor anyone else would deal with someone with a U.S. address. (I can hear the protests, but I'm a dual, not a snowbird, and was advised to cash out.) As a non-resident, the tax is 25%. Good deal, when you consider a resident would pay 46%.

I thought I was a non-resident, having sold my house and moved back to the States, but Serbinski disagreed. Since I had a Canadian husband living in Toronto waiting for his K-3, it was enough of a "tie" to make my RRSP taxable at the highest rate, even though I hadn't set foot in Canada in 2006.

I'd been saving for retirement for 25 years. The difference between paying 25% and 46% is a sickening $65,000. So I got a second opinion. The cross border tax experts at Keats Connelly maintain that I left Canada as a single person, took up residence in Jersey, and subsequently married a Canadian who returned to Toronto. But that doesn't change my non-resident status. It remains to be seen if Rev Can agrees.

Lesson learned: it's crucial to file an exit return and cut all financial ties (sell house, cancel credit cards, return gov health card, etc.). Even so, Rev Can might consider you taxable on your worldwide income even if you've moved to the States. And if you're filing jointly, it can be an even bigger, costlier mess.

[NaijaPrincess Need NaijaPrince 0]

I filed 2005 married joint. I came out better with my taxes. He had tofile for a tax id # & complete the W-7 form and I submit with taxes.

If everything goes well, my fiance and I plan to marry beginning of December. I was reading info on filing taxes while married to a non-resident. I was a bit confused! He won't have any income at the time so is it better to file married-joint or married separately. I did not understand the best way to file taxes with a non-resident spouse.

[billrussell 0]

I have a Thai Wife (We are waiting for our interview in Bangkok) and I filed jointly for 2005. I had to attach a form (Forgot which number) to my tax return, and it was rejected, due to the fact that I needed a Notarized copy of my wifes passport.

After getting the U.S. Embassy to do this, I re summited the documents, and I received my tax refund in September.

My Thai wife now has a I.D. (It specifically states that this is not a social security number) and only to be used for tax purposes.

P.S. I saved about $800 in taxes by doing this.

[Yodrak 7]

Form W-9 Application for Taxpayer Identification Number.

I did the same and saved over $2,000 for 2004.

Yodrak

I have a Thai Wife (We are waiting for our interview in Bangkok) and I filed jointly for 2005. I had to attach a form (Forgot which number) to my tax return, and it was rejected, due to the fact that I needed a Notarized copy of my wifes passport.

.....

P.S. I saved about $800 in taxes by doing this.

[tom&tata 2]

Form W-9 Application for Taxpayer Identification Number.

I did the same and saved over $2,000 for 2004.

Yodrak

I have a Thai Wife (We are waiting for our interview in Bangkok) and I filed jointly for 2005. I had to attach a form (Forgot which number) to my tax return, and it was rejected, due to the fact that I needed a Notarized copy of my wifes passport.

.....

P.S. I saved about $800 in taxes by doing this.

Is it a W-9 or W-7 ?

[Yodrak 7]

tom&tata,

W-7. (W-9 has a similar name but is different.)

Thanks for questioning me on that.

Yodrak

Form W-9 Application for Taxpayer Identification Number.

I did the same and saved over $2,000 for 2004.

Yodrak

I have a Thai Wife (We are waiting for our interview in Bangkok) and I filed jointly for 2005. I had to attach a form (Forgot which number) to my tax return, and it was rejected, due to the fact that I needed a Notarized copy of my wifes passport.

.....

P.S. I saved about $800 in taxes by doing this.

Is it a W-9 or W-7 ?

[Marilyn. 340]

I, as the Canadian when I was still living in Canada, filed my taxes as married... but because my hubby didn't have a Social Insurance number all they told me to do was put NONRES in the space provided for the SIN number... I didn't need to include his income or anything....

Edited November 8, 2006 by MarilynP

[BPM-MVS 0]

No Comment. I didn't see all that was written. HA HA

Edited November 9, 2006 by LuvLife

[Texanadian 10]

I'm still in Canada, haven't moved yet. But my US fiance files Head of Household ever year. Seems to me it would be best for her to keep filing HoH and me file married filing separate once I get down there.

[Yodrak 7]

Texanadian,

Once you are married and living together she can no longer file as Head of Household.

Yodrak

I'm still in Canada, haven't moved yet. But my US fiance files Head of Household ever year. Seems to me it would be best for her to keep filing HoH and me file married filing separate once I get down there.

[Baileyj96 0]

found this. for non resident spouse

U.S. Citizens and Resident Aliens Abroad - Head of Household

If you are a U.S. citizen married to a nonresident alien you may qualify to use the head of household tax rates. Although your nonresident alien spouse cannot qualify you as a head of household, you can qualify if (a) or (B) applies:

You paid more than half the cost of keeping up a home that was the principal home for the whole year for your mother or father for whom you can claim an exemption (your parent does not have to have lived with you), or

You paid more than half the cost of keeping up the home in which you lived and in which one of the following also lived for more than half the year:

Your unmarried child, grandchild, stepchild, foster child, or adopted child. A foster child will qualify you for this status only if you can claim an exemption for the child

Your married child, grandchild, stepchild, or adopted child for whom you can claim an exemption, or for whom you could claim an exemption except that you signed a statement allowing the noncustodial parent to claim the exemption, or the noncustodial parent provides at least $600 support and claims the exemption under a pre-1985 agreement

Any relative listed below for whom you can claim an exemption:

Parent Father-in-law

Grandparent Brother-in-law

Brother Sister-in-law

Half-brother Half-sister

Sister Son-in-law

Stepbrother Daughter-in-law

Stepsister Mother-in-law

Stepmother Stepfather

If related by blood:

Uncle Aunt

Nephew Niece

If your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien, then you are treated as unmarried for head of household purposes. You must have another qualifying relative and meet the other tests to be eligible to file as head of household.

You can use the head of household column in the Tax Table or the head of household Tax Rate Schedule. It may be advantageous to choose to treat your nonresident alien spouse as a U.S. resident and file a joint income tax return. Once you make the choice, however, you must report the worldwide income of both yourself and your spouse.