My spouse moved to the U.S. from Canada in 2022. For ~5 months they worked in Canada and towards the end of the year started working for U.S. employer. I have several questions. It would be great if you could address them by the point number mentioned below so I can track what your answer is referring to. Thanks!
1. My spouse will be outside the U.S. till the tax deadline, can the taxes be filed completely online from outside the U.S.? Please note this is the first time my spouse is filing U.S. tax so not sure if paper filing with wet signature(s) is REQUIRED?
2. If yes to 1, how does one file online? If no, can it be couriered from outside the U.S.?
3. What is the correct way to file the taxes? Claim Foreign tax credit on all taxes paid on income earned in Canada during ~5 months worked there?
4. I heard that when you leave Canada permanently, you need to mention that in the Canadian taxes. Can someone please explain that and if that has any impact on the U.S. filing?
Here's is what we are planning to do.
U.S. taxes
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- Claim foreign tax credit on all taxes paid in Canada.
- File Form 1040, FABR, Form 8938, Form 1116 (Are we missing any forms? - my spouse has Canadian Bank account and RRSPs, hence FBAR and Form 8938)
- File online using commercial tools (does H&R Block file all these forms online?)
Canadian taxes
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- File taxes normally - report the U.S. (foreign) income and the U.S. (foreign) taxes paid
- Any other requirements since my spouse left Canada permanently for the U.S.?
Thank you for all your valuable input.
