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QUESTION:
I am a Canadian citizen and will be marrying an American next year. Because
we both have carreers and children in our respective country and because we
can 'commmute' from one house to the other fairly easily (a few hours drive,
we've been doing it for almost 5 years now) we have decided not to move
together after the wedding (he will be keeping his house in PA and work
there and I will be keeping my house in Ontario and work here). My fiance
has an income over $100,000 US / year and mine is over $50,000 CDN / year. I
have one dependant child living with me, he has 2 children which he can
claim as dependant. My questions are as follows:
1) Do we have to file together (as married) in both Canada and the US or can
we file separately? What is the best option?
2) Should I get (can I get) some kind of 'status" in the USA (i.e. green
card) even though I will NOT be living in the United States after our
marriage?
3) Will the border crossing become a nightmare (i.e. to prove that I don't
intend to stay in the US, and he doesn't intent to stay or work in Canada)?
4) Can he invest in my RSPs in Canada?
5) Can you help us with our tax filing even though we are in Ontario/ USA
and your office is in BC? How much can we expect to pay your office for
filing and more detailed advise on these issues?
Thanks for your help. I look forward to hear from you.
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david ingram replies:
Although unusual, you are not alone. At one time I had close to 100 clients in your position. No others now that I can think of. And, I used to live in Dundas and Guelph and my sister lives 50 miles away from Pittsburgh, PA so I can visualize your drive.
1. You are married so it is only logical that you will file as married. It would be illegal to file any other way because family income affects your tax return. However, as he is already filing as a head of household, your marriage will serve to increase his tax by $4,000 if he then filed as MFS (married filing separately).
You can file a joint return which with the addition of two more children (I am assuming) should serve to slightly reduce his tax. Foreign tax credits or earned income exemptions should serve to remove any extra tax on your income.
In Canada, his income would affect any Child payments you may be getting. You would not lose anything else that I can think of.
.
2. You could prepare a request to give to a border person who "might" issue you a B2 Status as a visitor. That piece of paper would still not guarantee you that the next border person would allow you in. In fact, in my opinion, the possession of the piece of paper is unusual enough that its existence would raise the inquisitive hackles of the next person you presented it to. I did get one once. Never again. The border kit was my answer and In ten years now, I have never had a c;oent tell me they were not allowed in with their kit.
3. Border crossings could become more difficult on occassion but with the preparation of a Border Kit, should be successful and painless. Your boirder kit would have your housing documents, a letter from your employer, your kids' school records, copies of your phone bills and hydro bills and a notarized statement that you do not intend to live in the USA even though your husband lives there. I like includiong copies of driver's licneces, super market affinity cards, your local library card, video rental card, etc.
Your husband's border kit would be in reverse. A reference or some sort of proof you have already being doing the commutes for 5 years would also be good.
.
Both of you will be tempted to get things like video rental cards and affinity cards in the other's home towns. DON'T! Their presence in your purse or his wallet are "living" in the wrong country indicators.
4. He could but why? It would be taxable when it came out and not deductible when he bought it. He can give you money to buy one in your name which would be deductible on your return, not his.
Stay away from cross border tax shelters of any kind.
5. Would love to do the returns by mail, email, courier or fax. Would likely be about $700 Canadian for Canada, Pennsylvanis and Federal US.
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321
New email to [email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
This from "ask an income tax and immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, Indonesia, Egypt, Antarctica, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico,New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon. Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming, British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec City, New Brunswick, Prince Edward Island, Nova Scotia, Newfoundland, Yukon and Northwest and Nunavit Territories, Mount Vernon, Eumenclaw, Coos Bay and Dallas Taxman and Tax Guru Your name has been added to our email list because of an enquiry we have received, we may not answer your question but
another similar question will be as we lump them.
You may find more answers at www.centa.com
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
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