Basic U.S. tax question

[Brian_bellingham 0]

Sorry if this has been answered many times before, but I do need to know.

We just got married in November, Belinda came on a K1 Visa. She worked in Canada until late September, did not work at all in the U.S. in 2005.

Can I file as "Married filing jointly"? If so, I am guessing she needs to fill out form 8891, the RRSP one. Does she need to report her Canadian income, and then fill out a form for a foreign tax credit, or can we just not mention her Canadian income at all and just use the 8891?

I would also assume she would elect not to be taxed on her gains from her RRSP's.

[zyggy 9]

Sorry if this has been answered many times before, but I do need to know.

We just got married in November, Belinda came on a K1 Visa. She worked in Canada until late September, did not work at all in the U.S. in 2005.

Can I file as "Married filing jointly"? If so, I am guessing she needs to fill out form 8891, the RRSP one. Does she need to report her Canadian income, and then fill out a form for a foreign tax credit, or can we just not mention her Canadian income at all and just use the 8891?

I would also assume she would elect not to be taxed on her gains from her RRSP's.

As your spouse arrived in November, the substantial presence test or green card test wouldn't come into pay yet... However, you can opt to have your spouse treated as a resident alien for the entire tax year. You need to attach a statement to that effect on your return. If you do this, you can file as married filing joint.

If you do this, your spouse will need to report her Canadian income. However, she can exclude it by filling out a Form 8555 or 8555EZ. In addition, you'll need to include the Form 8891 if you do not wish to include the gains from your RRSP as income. The official exchange rate for the year 2005 as published by the Federal Reserve is 1.212

For Canadian taxes, you merely fill out the T1 for the province that she last resided in and fill out the left canada on blank on the first page. If she lives in Ontario, be aware that they define the end of the tax year as the date that you left Canada, so you'll have to include the Ontario health premium for instance. You file the T1 to the International Tax Services Office in Ottawa.

[zyggy 9]

Sorry if this has been answered many times before, but I do need to know.

We just got married in November, Belinda came on a K1 Visa. She worked in Canada until late September, did not work at all in the U.S. in 2005.

Can I file as "Married filing jointly"? If so, I am guessing she needs to fill out form 8891, the RRSP one. Does she need to report her Canadian income, and then fill out a form for a foreign tax credit, or can we just not mention her Canadian income at all and just use the 8891?

I would also assume she would elect not to be taxed on her gains from her RRSP's.

As your spouse arrived in November, the substantial presence test or green card test wouldn't come into pay yet... However, you can opt to have your spouse treated as a resident alien for the entire tax year. You need to attach a statement to that effect on your return. If you do this, you can file as married filing joint.

If you do this, your spouse will need to report her Canadian income. However, she can exclude it by filling out a Form 8555 or 8555EZ. In addition, you'll need to include the Form 8891 if you do not wish to include the gains from your RRSP as income. The official exchange rate for the year 2005 as published by the Federal Reserve is 1.212

For Canadian taxes, you merely fill out the T1 for the province that she last resided in and fill out the left canada on blank on the first page. If she lives in Ontario, be aware that they define the end of the tax year as the date that you left Canada, so you'll have to include the Ontario health premium for instance. You file the T1 to the International Tax Services Office in Ottawa.

It's form 2555 Not 8555... oops...

[Brian_bellingham 0]

Thanks, that helps. It does not sound too bad, and I will save a lot of money. Belinda will understand more about the Canadian part. And yes, she is from Ontario.

[Flames9_RN 358]

Good Canada/USA tax forum: http://forums.serbinski.com/index.php?sid=...69e26b292b2d1cc

Lots of info there

[Brian_bellingham 0]

So if we do this, in addition to form 8891 and form 2555, do I report her income along with mine on the 1040? If so, this would push us into a higher tax bracket, and I don't know if that would completely wipe out any advantage we have in filing jointly instead of me filing Married filing Seperately.

So if we do this, in addition to form 8891 and form 2555, do I report her income along with mine on the 1040? If so, this would push us into a higher tax bracket, and I don't know if that would completely wipe out any advantage we have in filing jointly instead of me filing Married filing Seperately.

[zyggy 9]

So if we do this, in addition to form 8891 and form 2555, do I report her income along with mine on the 1040? If so, this would push us into a higher tax bracket, and I don't know if that would completely wipe out any advantage we have in filing jointly instead of me filing Married filing Seperately.

So if we do this, in addition to form 8891 and form 2555, do I report her income along with mine on the 1040? If so, this would push us into a higher tax bracket, and I don't know if that would completely wipe out any advantage we have in filing jointly instead of me filing Married filing Seperately.

Yes.. you report her income in Line 7 of your 1040 along with yours... however, you then exclude it by listing it as negative income on Line 21... so you won't go into a higher tax bracket. Your AGI would be the same as if you filed seperately. It's far better because you can still file as married filing jointly and get the benefits of married filing jointly, but her income is not factored into the tax equation as long as it is not more than the excluded amount.

Edited March 1, 2006 by zyggy

[Brian_bellingham 0]

Thanks, that is a big help! I knew I could find help here on VJ. Having us file jointly, especially since I itemize anyway, will save us $$$. That will be worth the hassle of the forms.

[Brunette 0]

I filed my husband's US taxes back in January (he's deployed and I figured I'd do it and learn something in the process). I had the tax centre at the army base help me. We filed married but separate and I had to get a TNN number. We have been married since May 16th, 2005 and I won't be moving to the states until April 1st after my montreal interview in March.

Could we still have filed married jointly using the steps outlined above even though I was never physically present in the states for the year 2005?

[zyggy 9]

I filed my husband's US taxes back in January (he's deployed and I figured I'd do it and learn something in the process). I had the tax centre at the army base help me. We filed married but separate and I had to get a TNN number. We have been married since May 16th, 2005 and I won't be moving to the states until April 1st after my montreal interview in March.

Could we still have filed married jointly using the steps outlined above even though I was never physically present in the states for the year 2005?

Yes...

You would fill out a Form 2555EZ since you were outside the US for the entire tax year. You would also have to fill out an W-7 for the ITIN and attach the statement signed by you and your husband that you opted to be treated as a resident alien for the entire tax year. You would get LOTS more money if you would have filed jointly. If you want to change things, you'll have to file an amended return.

Edited March 2, 2006 by zyggy

[raphael7546 0]

I came to the states July1st. got married August 4th 2005. haven't worked here since I got here.

We filied Jointly and my hubby got a good size refund by doing so.