Filing taxes when spouse's outland immigration is not complete

[tdkw2018]

I have a question regarding completing my (Canadian) taxes - not sure if anyone can offer guidance!

My husband an I were married in June 2017, so this will be my first year completing my taxes with a legal status of being married. However, we are in the middle of the immigration process (outland family application) - he still lives in the US and I'm in Canada, and we don't currently share finances.

On my taxes, I'm asked if I changed my marital status (yes). But it now wants my husbands SIN (he doesn't have one - he's American) and income information from Canadian forms (which he doesn't have, obviously; he works in the US).

Has anyone had this experience? If so, any guidance you can provide?

 

[Rob_TO]

I have a question regarding completing my (Canadian) taxes - not sure if anyone can offer guidance!

My husband an I were married in June 2017, so this will be my first year completing my taxes with a legal status of being married. However, we are in the middle of the immigration process (outland family application) - he still lives in the US and I'm in Canada, and we don't currently share finances.

On my taxes, I'm asked if I changed my marital status (yes). But it now wants my husbands SIN (he doesn't have one - he's American) and income information from Canadian forms (which he doesn't have, obviously; he works in the US).

Has anyone had this experience? If so, any guidance you can provide?

You can indicate on SIN section of tax forms, that he's a non-resident. Some tax programs allow you to enter 000 000 000 or 999 999 999 or something like this to indicate the person doesn't' have a SIN. If doing return by hand on paper form, you can write in pen "No SIN, not a resident of Canada" or something like that.

You will not be able to claim him under the "spouse amount" (line 303) for extra deduction, since you are not supporting him or living with him in Canada.

Once CRA learns he's a non-resident, they will most likely send you an additional questionnaire form asking for his worldwide income earned. This will be used to calculate your "family" income, and what tax credits/benefits you would be entitled to. If you happened to be getting ongoing benefits (i.e. like the GST/HST rebates), they will be re-assessed based on your "family" income going back to June 2017. For some people, this results in a big bill when CRA asks for money back that they got as single but wouldn't have qualified for using family income.

 

[tdkw2018]

You can indicate on SIN section of tax forms, that he's a non-resident. Some tax programs allow you to enter 000 000 000 or 999 999 999 or something like this to indicate the person doesn't' have a SIN. If doing return by hand on paper form, you can write in pen "No SIN, not a resident of Canada" or something like that.

You will not be able to claim him under the "spouse amount" (line 303) for extra deduction, since you are not supporting him or living with him in Canada.

Once CRA learns he's a non-resident, they will most likely send you an additional questionnaire form asking for his worldwide income earned. This will be used to calculate your "family" income, and what tax credits/benefits you would be entitled to. If you happened to be getting ongoing benefits (i.e. like the GST/HST rebates), they will be re-assessed based on your "family" income going back to June 2017. For some people, this results in a big bill when CRA asks for money back that they got as single but wouldn't have qualified for using family income.

Thank you so much!
I was hoping it was going to be a straightforward process I could do myself online, but definitely having second thoughts now.
Appreciate your time & response!

 

[Rob_TO]

Thank you so much!
I was hoping it was going to be a straightforward process I could do myself online, but definitely having second thoughts now.
Appreciate your time & response!

Are you are using a specific tax company to prepare your return (i.e. Turbo tax, Ufile, etc)? If so you should contact that provider and ask this question. Every tax software will be different in how they accept non-resident spouse info.

I helped a friend with their taxes some time ago in this situation, the the program refused to allow any spouse without a SIN, so we were forced to do an old fashioned paper tax return by hand. This was some time ago though so I imagine these days, most programs will have some solution for it.

 

[tdkw2018]

Are you are using a specific tax company to prepare your return (i.e. Turbo tax, Ufile, etc)? If so you should contact that provider and ask this question. Every tax software will be different in how they accept non-resident spouse info.

I helped a friend with their taxes some time ago in this situation, the the program refused to allow any spouse without a SIN, so we were forced to do an old fashioned paper tax return by hand. This was some time ago though so I imagine these days, most programs will have some solution for it.

H&R Block, online. It won't let me proceed (online) without entering my husband's SIN, which of course is non-existent; it won't accept his SSN. May have to go the old-fashioned paper route, but I'll definitely utilize their support and see if that's the only option. Thanks again!

 

[Rob_TO]

H&R Block, online. It won't let me proceed (online) without entering my husband's SIN, which of course is non-existent; it won't accept his SSN. May have to go the old-fashioned paper route, but I'll definitely utilize their support and see if that's the only option. Thanks again!

Before going the paper return route, I would investigate some of the other tax programs out there. May need to spend $20 on a program, but would be worth it if they accept a non-resident spouse and you can do your return much easier. Doing paper returns can be a pain.

 

[Alex54321]

You can indicate on SIN section of tax forms, that he's a non-resident. Some tax programs allow you to enter 000 000 000 or 999 999 999 or something like this to indicate the person doesn't' have a SIN. If doing return by hand on paper form, you can write in pen "No SIN, not a resident of Canada" or something like that.

You will not be able to claim him under the "spouse amount" (line 303) for extra deduction, since you are not supporting him or living with him in Canada.

Once CRA learns he's a non-resident, they will most likely send you an additional questionnaire form asking for his worldwide income earned. This will be used to calculate your "family" income, and what tax credits/benefits you would be entitled to. If you happened to be getting ongoing benefits (i.e. like the GST/HST rebates), they will be re-assessed based on your "family" income going back to June 2017. For some people, this results in a big bill when CRA asks for money back that they got as single but wouldn't have qualified for using family income.

To be clear let's assume the same scenario - husband non-resident of Canada, wife resident of Canada.

1. What if husband (dual citizen, non-resident of Canada) lives and works in US and has a SIN ( being told the number is valid, but "frozen" due to absence from Canada for 20 years) ? By given his SIN on her Canadian tax return and reporting his US income is this still to calculate Canadian "family" income only and Canadian credits/benefits entitlement? Or something else could happen with CRA in regard of her husband's US income?

2. How Canadian spouse claims her foreign tax credit for taxes paid to US by her US husband, which files "married filed jointly" in US tax return?
So, my question is how to separate her share of taxes paid to US on family worldwide income (US income- husband + Canadian income - wife) to claim foreign tax credit on her Canadian tax return?

3. In such a scenario, which taxes should be filed first - in US on family worldwide income or in Canada of wife's tax return?