US Citizen and Canadian citizen Tax

[ashley9 0]

Hi guys,

I hoping someone can help me with my situation . My husband is Canadian, he has no intentions to give up his Canadian citizenship . We live in the border with Canada and he commutes to Canada and works in Canada. Time is close for us to file taxes in US and he is refusing to provide his Canadian SSN and declare his income . He simply refuses, saying I am already paying taxes in Canada I don't want to declare my income here in the US, will IRS ask questions ?

[Boiler 45,153]

Ohh yes

[aaron2020 11,651]

Yeah, the IRS will ask questions.

As an LPR, he is obligated to declare his worldwide income on a US tax return. He will get a US tax credit for taxes paid in Canada.

The deliberate failure to file will get him in BIG TROUBLE.

To be blunt, your husband is being very stupid.

If he doesn't want to deal with US taxes, then give up the green card and move back to Canada. Otherwise, the green card obligates him to file a US tax return.

Also, if he filed his Canadian taxes as a resident of Canada, he could be deemed to give up his green card.

Edited March 31, 2015 by aaron2020

[kzielu 1,147]

Make him look up N-400 if he ever want to get citizenship, point to the question that reads something like "Did you ever fail to file tax return...."

[ChicagoSarah 127]

Of course they'll ask questions.

As mentioned, foreign earned income up to a certain threshhold (around 98,000 USD) is deducted when considering taxable income on the 1040. There are some additional forms to fill out (2555 forms and I believe others). He has to do them whether he wants to or not....or, as mentioned above, risk any plans at citizenship (and the IRS catching up with him and owing tons of back taxes and penalties).

[aaron2020 11,651]

Of course they'll ask questions.

As mentioned, foreign earned income up to a certain threshhold (around 98,000 USD) is deducted when considering taxable income on the 1040. There are some additional forms to fill out (2555 forms and I believe others). He has to do them whether he wants to or not....or, as mentioned above, risk any plans at citizenship (and the IRS catching up with him and owing tons of back taxes and penalties).

The Foreign Earned Income Exemption does not apply when the taxpayer is residing in the US.

The taxpayer can get a US tax credit for the taxes paid abroad.

[ChicagoSarah 127]

The Foreign Earned Income Exemption does not apply when the taxpayer is residing in the US.

The taxpayer can get a US tax credit for the taxes paid abroad.

Thank you for clarifying. We did all of that with our 2013 taxes, and I think i blocked it out after we mailed off those forms. My husband moved in the fall of that year, so that's why we would have had to file that form.

So many tax forms, so little time...