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Taxes - U.S. Citizen & Canadian PR - Filing Married vs Separately

jclarke99

Hero Member
May 10, 2020
234
73
About to received Canadian PR, and have a question about filing Separately vs Jointly Married. We're both U.S. Citizens and my spouse is a Canadian Citizen, and I will be a Canadian PR. We plan to move to Canada soon.

When we become residents of Canada, we'll need to file both U.S. and Canadian taxes. In the U.S., we've always filed Married Jointly. In Canada, my understanding is that we have to file Separately (even though we're married).

In order to make use of the U.S.-Canada tax treaty (i.e., so that we're not double taxed), does this mean that I need to run our U.S. taxes twice - first as married jointly (for U.S. filing) and then do the calculations as if we're filing U.S. Separately - to align with the respective Canadian Separate tax computations? Or can I just use the U.S. married jointly tax computations and somehow line these up with the respective Canadian filing Single calculations (i.e., somehow allocate the foreign tax credit accordingly?

Thanks
 
 

canuck78

VIP Member
Jun 18, 2017
45,760
10,879
About to received Canadian PR, and have a question about filing Separately vs Jointly Married. We're both U.S. Citizens and my spouse is a Canadian Citizen, and I will be a Canadian PR. We plan to move to Canada soon.

When we become residents of Canada, we'll need to file both U.S. and Canadian taxes. In the U.S., we've always filed Married Jointly. In Canada, my understanding is that we have to file Separately (even though we're married).

In order to make use of the U.S.-Canada tax treaty (i.e., so that we're not double taxed), does this mean that I need to run our U.S. taxes twice - first as married jointly (for U.S. filing) and then do the calculations as if we're filing U.S. Separately - to align with the respective Canadian Separate tax computations? Or can I just use the U.S. married jointly tax computations and somehow line these up with the respective Canadian filing Single calculations (i.e., somehow allocate the foreign tax credit accordingly?

Thanks
Would suggest using an accountant that specializes in US and Canadian taxes (pretty easy to find) at least for your first year in Canada.
 

teelad

Newbie
Feb 21, 2022
5
0
Hi everyone! There's a nice webinar coming up that anyone who just moved to Canada will find useful. It's a financial bootcamp and it's completely free.

As people living in the diaspora, one of the things that will set you up for success and quick adaptability is a solid financial foundation:
- Understanding how finances work in Canada and
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Financial professionals will share insights about how taxes, credit, pension, banking, insurance, and financial advisory work in Canada.

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