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Tax return?
Posted by admin on Nov 8th, 2009
bi asked:
My friend is a Canadian working in company. His wife, who is yet to become a permanent resident, is working in USA on work-visa. Do my friend need to file income tax return, for his wife, in Canada? Will he recieve any tax benefit due to having family? Please let me have a detailed information on the issue.
My friend is a Canadian working in company. His wife, who is yet to become a permanent resident, is working in USA on work-visa. Do my friend need to file income tax return, for his wife, in Canada? Will he recieve any tax benefit due to having family? Please let me have a detailed information on the issue.
Your friend’s wife will need to file returns in the US as well as Canada. On the US side:
Federal: 1040NR but depends very much on the number of days she has spent in the US during the year; dual status return might also apply under some circumstances.
State/Local: unless there is no income tax for the state, she will likely have to file a non-resident state (and local, if applicable) return where she worked.
To prevent double-taxing, Canada and US has reciprocity agreements so the taxes paid in the US can be claimed on the Canadian return.
Depending on any other situations, there are additional factors to consider. I’d advise your friend and his spouse seek professionals to make sure everything is in compliance, as far as the filing requirements are concerned.