US Canadian Income Tax for US husband and Canadian
QUESTION: Hi, My husband (American) and I (Canadain) have recently married. We are liveing separtley while my I-130 is being processed because I am on contract as a high school teacher. I have spoken to an accountant that stated that we should file as if we were not married and another who said that I should put my husband's income as a foreign credit. Do you have any advice? Thanks --------------------------------------------- david ingram replies: Your husband has the choice of filing a joint return which would include your income and include a form 1116 to calculate a foreign tax credit for your income or a 2555 to exempt your Canadian income after reporting it first. How you file would depend upon your status and income. His second choice would be to file his own return as MFS (married filing separately). Because you were married at the end of 2004, your Canadian return would include your husband's equivalent line 236 net income on your return. Its only effect would be to cancel or lower any Canadian GST or provincial tax credits which you might get otherwise. I have assumed here that you are teaching in Canada and your husband is living and working in the USA. We would be glad to look after these returns for you by fax, email, snail mail or courier. Answers to this and other similar questions can be obtained free on Air every Sunday morning. Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Dundee Wealth Management and I, David Ingram will be hosting an INFOMERCIAL but LIVE talk show called "ITS YOUR MONEY" Those outside of the Lower Mainland will be able to listen on the internet at www.600AM.com <http://www.600am.com/> Local calls are taken at (604) 280-0600 and Long Distance calls are taken at 1( 866) 778-0600 I do not know how far the LD line reaches. ========================================= This from "ask an income tax and immigration expert" from www.centa.com <http://www.centa.com/> or www.jurock.com <http://www.jurock.com/> or www.featureweb.com <http://www.featureweb.com/> . 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