New Jersey spouse/child moving back to British Columbia

This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
Hi there!
After having lived here with my husband for 3 years -in New Jersey, I am coming back to Canada (BC) with our child.
My husband has been here for 4 years.  He will continue to work here in NJ.
While here for the past 3 years we have been claiming US residency and have not paid any Cdn taxes.  By the same token, we do have a joint Cdn checking account where the monies are coming from an early retirement that my husband has taken ( approx. $1100.00 per month).
Our daughter who is 15 years old has approx. $35000.00 being held in trust with the Alberta Public Trustee until she attains majority.
How is all this going to impact our tax situation?
Thank you very much for your help - greatly appreciate it.
David Ingram Replies
A lot of it depends upon intent and marital situation.
The Canadian Income Tax CRA (Canada Revenue Agency) will want to tax your husband as a Canadian because his wife and child are living in Canada and he has a home available to him in both countries and he is a Canadian.  
Your husband should have been paying tax to Canada of 15% on his early retirement pension and that money should have been reported on his US tax return as well.
Your husband should correct his Canadian situation for the last three or four years and send Canada 15% of the pension under Article XVIII of the US / Canada Income Tax convention. Then he would amend your joint US 1040 returns to report the pension and claim credit for the 15% paid to Canada.  
He should also inform the pension payer that he is a non-resident and have them deduct 15% non-resident withholding tax and have them remit it to Canada.  It is cleaner that way.
You should close your joint bank account in Canada.  If you are coming back, you can have your own account then.  He can send you money but the pension should not be deposited to that account.  The pension should be mailed to him in the USA or deposited to a US bank account if he is a non-resident and wishes to remain a non-resident.
Now that is for the past and what you should have been doing and should do now to make it right.
When you come back to Canada, it complicates the issue again. If your husband wants to come back and does not intend to stay n the US and you do not want to ever go back, he will be taxable in Canada on his world income.  On the other hand, if you are coming back because the marriage is not working well, and he wants to stay and you do not want to stay or do not want to say for the time being because you can not work, he is not necessarily taxable in Canada. 
He will have to file a tax return but will be a factual resident of Canada which means that he will be paying tax on his Canadian Income (the pension) and reporting his world income but will remove all the US income on line 256 of his tax return by claiming the benefits of Article IV of the US Canada Income Tax treaty because he wants to stay there and has applied for a green card, etc.
If the family plan is for him to get the green card and then you will move back because you can work, he will not be taxable in Canada. 
It is tricky.  Go to and read the US/Canada Taxation section.  Pay attention the Wolf Bergelt case in particular.
You and your husband should likely buy an hour of my time with a phone consultation BEFORE you move back.  i.e. both of you on the phone at the same time.  I charge $350.00 Cdn for this but you would get a lot of benefit.
 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 Cartier Partners and I 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 
Local phone calls to (604) 280-0600 - Long distand calls to 1-866-778-0600. 
Old shows are archived at the site.
Fred Snyder and I are giving free seminars on making your CANADIAN mortgage interest tax deductible at our new office at 
1764 West 7th
This is in the Spence Diamond Building at the corner of 7th and Burrard
and is very easy to find.
When:  Just about " Every"  Thursday Night
Time:      7 to 9 PM
RSVP:     phone (604) 731-8900 to reserve (limited to 15 people)
My time is still spent at 
108-100 Park Royal South
West Vancouver, BC
(604) 980-0321
david ingram
==================================This from ask an income tax immigration planning and bankruptcy expert consultant guru or preparer  from or or Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate gambling refunds 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.
income tax wizard wizzard guru advisor advisors experts  specialist specialists  consultants taxmen   taxman tax woman planner planning preparer of Alaska,  Alabama,  Arkansas,  Arizona, 
 California Denver  Colorado, Connecticut,  
Delaware District of Columbia Miami  Florida, 
Garland Georgia,  Honolulu Hawaii,  Idaho,  Illinois,
  Indiana  Des Moines Iowa  Kansas  Kentucky, 
 Louisiana  Bangor Maine  Maryland  
 Boston, Massachusetts, Michigan, Minnesota,  
Mississippi,  Missouri,  Montana,  Nebraska,  
Nevada, New Hampshire,  New Jersey, 
New Mexico,New York, North Carolina,  
North Dakota,  Ohio,  Oklahoma,  Oregon. 
Paris,  Rome, Sydney, Australia Hilton
Pennsylvania,  Rhode Island,  Rockwall, 
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 Houston Rockwall Garland 
Texas  Taxman and Tax Guru  and wizzard 
wizard - David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321
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 If you forward this message, this disclaimer must be included."
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
---------------------- multipart/alternative attachment--


Trackback URL for this entry:

No trackback comments for this entry.