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
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