My husband and I just got married in June 2007 and of course I am still living in B.C. until my CR1 visa is done. I just went to do my 2007 taxes in QuickTax and when I change my marital status to married it asks for my spouses name and SIN (which of course he doesnt have) and his income. I called a tax preparation place explaining my situation and the lady said I had to just had his name and put in his income. I called Revenue Canada and after being put on hold for a long time the girl came back and said I just put his name, put in "non-resident" where the SIN goes and do NOT add his income. What did anyone else do their first year married?

Oh brother, I just can't wait until next year when I actually live in the U.S. but still work in Canada...that will be real complicated.....lol

This is a lot like my situation!

Does the program let you put "non-resident"? If so, make sure that it isn't giving you the spousal credits. With the program I am using, I have to enter in enough spousal income so that I don't get the extra credits.

Are you planning on mailing your return? If so, just include a short note explaining the situation.

Wow! doesn't sound like a very good program.

We both live in Canada so not an issue, but I use Ufile and it has an option where you chose whether or not they automatically claim the spousal credits, so you can choose no and not have to enter any income.

It also gives you the option of flagging a person as non-resident, in the identification area - you would think all software should at least have that!

Yeah, I didn't look at my program before answering that. In the past I have used programs that you have to manipulate to get them to do what they want.

The one I use is professional, its good. I just click the spouses income is not zero box. I shouldn't do any posting before I've had my coffee ...

Hope I didn't confuse anyone.

NP happens to me all the time

I hope it isn't Cantax

Nope, I've never used Cantax except in school. I use Profile.

Thanks for your replies, It was QuickTax and couldn't seem to put "non-resident" in where the SIN goes and when I didn't enter his income it must have gave me the spousal credit because it said my refund was huge....(wish it was true!) I think I will take it to H & R Block or some place like that and get them to do it.

Sorry Linda, I don't think I even replied to your question!

H&R block is always a good option - or if you are pretty confident in doing your own return why not use ufile.ca - it's all online, no software to install, it's inexpensive AND it has the option to add your Husband and choose 'non -resident'.

Anyway just thought I would throw that out there as another option

what is good software to use to be able to do deemed non-resident status with not entering information about a spouse?

Well, I just came back from H & R Block and the person said that I would have to add my husbands U.S. income and to call back Revenue Canada to confirm. Of course, I called Revenue Canada and got a different person and he said you definitely have to put in my husbands income from the U.S. and suggested mailing in my return instead of E-Filing so that I can explain the situation.

This is what I was told by Revenue Canada. Put in my husbands name, N/A AMERICAN RESIDENT (instead of SIN) and his income (converted). Was told that being out of the country, you must mail your return to the International Tax Services Office, 2204 Walkley Road, Ottawa. I was not told to include any statement of explanation since this office is familiar with all issues specific to international and emigrant returns.

I am still living in Canada though, so I don't think that would apply to me to send it to the Intl Tax Services?

MY BAD

Yes, if you are living in Canada, mail as normal to your tax office.

You do need to include your spouses world income for the period that you are a resident of Canada.

I was JUST wondering how I was going to do my taxes this year when I read this forum. So let me get this straight...

I am Canadian, living in Canada, my husband lives in the US. I DO have to put his income down on my return?

Here is a really useful tax guide:

http://www.cra-arc.gc.ca/E/pub/tg/t4056/t4056-e.html

The 216 return is for a non-resident who receives Canadian source rental income.

The 217 return is for a non-resident to elect to file a Canadian return.

A lot of people have asked how to include their spouse, this guide provides that answer as well:

enter your spouse or common-law partner's net world income for the part of the year you were a resident of Canada.

For the year you emigrate there are special instructions - you file one return for the year. You have a choice - claim income only to the date you left, or claim it for the whole year. You do not received provincial tax credits for the period you were a non-resident.

Special instructions: http://www.cra-arc.gc.ca/E/pub/tg/t4056/t4...html#P192_20253

Hope this helps.

Thank you:) But OMG I am still so confused. I've resided in Canada for this whole year, but we were married in July 07.

I'm unsure whether to use his yearly income or just what he made from the time we were married until December.

Thanks

I believe you would use the his world income from the time you were married.

Sorry, I don't have a ton of time at the moment to think on this. Can anyone else give it a shot?

I'm away for the weekend but can look at this in more detail on Monday if you've not got an answer by then.

It wouldn't let me edit .. weird.

I wanted to just add:

This shouldn't affect your Canadian return and will have no affect on you at all unless you were qualifying for the GST credit, if this is the case your husband's income may put you over the income threshold and you would stop receiving the credit cheques.

Sorry, I don't have a ton of time at the moment to think on this. I can't recall off hand what the guide says ... can anyone else give it a shot?

Anyone know what the non-resident withholding tax rate is that I need to use for the Schedule C - Electing under Section 217?


SOOO Confused...

I'll look into it and get back to you ...
I feel a bit sheepish being an accountant and all but I really have zero experience with international tax issues. I'm guessing if you didn't set up your income to have the 25% NRT (non-resident tax) you may not have the option of electing under 217. I'll re-read the stuff and see what it says.

Hey Linda, I'm in that exact situation right now. I was getting nervous about tax time but I found a CA that was experienced in CAN/US tax. I just had a meeting with her last week and all my worries are at rest. She was really knowledgable and it doesn't seem like it's going to be so bad and was really surprised at the deductions and credits I could still use and how the US/Canada tax treaty will eliminate the urban myth that you will be double paying taxes in both countries. I suggest you find an accountant or tax preparer that is good and experienced in CAN/US tax - at least for the first year.

I agree with Neiks, if you can afford it go with either a CA/CGA or a CPA depending It honestly doesn't cost much more than H&R block.

I was also surprised that it wasn't all that expensive. I know that checking on some websites for international tax preparation that some were charging $500-1800. I was quoted less than $100 per return.... money well spent as far as I'm concerned, I was expecting to have to pay alot more.

Thanks everyone for the information.

What I ended up doing is, still used QuickTax and added in his income (with a conversion percentage that H& R Block gave me and then wrote an letter explaining the situation and let them fix it if needed. Will see what I end up with. Next year, when I actually live down in the U.S. and still work in Canada I will definitely have to go to an accountant that specializes in Can/Us Tax