Dual tax in two countries first year help please ..

[missingmyguy 4]

Here is our situation if anyone can offer insight.

I moved to USA and married December 5 /2015...we just started AOS status a few weeks ago from a K1 visa. I do not yet have the documents to work or a social security.

SO, My question is, I worked as usual in my home country Canada until I moved. I do not work here in the USA, but

I understand I need to file my taxes in two countries regardless of no income since Im married to a USC.

We dont have everything adjusted yet with status but before my husband and I can file JOINT USA TAXES..for the 2015 year, I need to file my Canadian taxes. Question is back in Canada is it okay for me to go ahead and file for Canadian taxes of 2015 as married but filling separately? We cannot do our USA taxes jointly till I file in Canada.

Any advice appreciated. Thx

[Dohan 133]

I would check with the taxing authorities or your previous accountant in Canada. Your USA taxes have nothing to do with your Canadian taxes.

[NikLR 13,227]

Yes you can file your exit taxes in Canada. And then file MFJ in the USA. Check the serbinski forums on how to do so when you had Canadian income.

[aaron2020 11,651]

I would check with the taxing authorities or your previous accountant in Canada. Your USA taxes have nothing to do with your Canadian taxes.

Foreign income and taxes have everything to do with USA taxes. The USA taxes on worldwide income. Most of the world including Canada taxes based on source. It's a big surprise to most people.

[Dohan 133]

1) USA cannot tax her on Canadian income prior to the moment she became an LPR of the US.

2) I fail to see why the Canadian income tax must be done PRIOR to filing USA tax, the OP made it seem like filing American taxes could not happen until the Canadian income tax return was completed

this is what I was referring to when I said the USA taxes have nothing to do with Canadian taxes. I meant that filing the Canadian income tax is not a condition precedent to filing the US income tax.

[NikLR 13,227]

I thought the same way as the OP when I did my exit taxes for Canada because of how the US tax return is worded. However you do not have to file Canadian taxes before US ones. BUT the US can tax you on income made that year if you dont file your taxes correctly and are choosing to file MFJ instead of MFS. The MFJ means they're choosing to be considered a resident for tax purposes even before they moved to the USA. Because there is a tax treaty in place between the US and Canada there is a form (Form 2555) that can exclude your foreign earned income up to a certain dollar value if you qualify (which the OP does since they moved in Dec.) This is so the OP isnt taxes twice on their income. There are even more forms if you still own property or have RRSPs or interesting earing accounts with money in them. Taxes can get complicated.

There is also a specific way the OP needs to do their Canadian taxes because they are becoming a non-resident of Canada but most or all of their income was made in Canada. This includes filing on paper and not using e-file.

[NikLR 13,227]

Aaron2020 is correct. Yes the US CAN and WILL tax income earned before becoming an LPR because of the way the OP is choosing to file their taxes IF the OP does not file them correctly.

[missingmyguy 4]

Okay this is helpful, thanks, but im still a tad or a lot confused.

So I file In Canada..I will file as married filing single.

But when I file in the USA we can file together as married filing joint? Is this correct?

I have zero USA income for tax year, just canadian income. We married and I moved at the very end of the year.

Will the above work so were not overtaxed unecessarily?

My lawyer made sure to state that we must file I the USA as joint, even though I have no income for adjustment purposes..or it may not be favorable duribg AOS interview.

[NikLR 13,227]

Yes you can do that.

Filing as MFS in the USA is fine too but the other way gets a better return. Also since you only worked in Canada that's a better return from Canada too if you get one. Make sure you get all the schedules and forms you need for both.

[missingmyguy 4]

Thanks! This helps, alot!