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Income Tax & Foreign Spouse?



A Canadian married to an American-both earning similar incomes $40,000+ in each country.Candian does not live in the USA and US Citzen does not live in Canada. Does the Canadian have to claim her American husband on her income tax forms? Anyone know the chances of if the Canadian would have to pay taxes?

NO the cdn does not claim the american spouse on return.

As for paying taxes on the 40K income -- it is taxable and if taxes were withheld at source from the pay, the refund or balance owing would depend upon how much was withheld, how many deductions one has etc.
The difficult part about your situation is whether your US husband is considered a "resident" of Canada. You can most likely find your answer to this link to CRA's website:

http://www.cra-arc.gc.ca/e/pub/tp/it221r...

Read the article about "factual residence". I guess the sticky point here is whether he maintains a significant "residential tie" in Canada. And as far as the article is concerned, being married to a Canadian is a significant residential tie to Canada.

This article only helps answer whether he should pay taxes in Canada. As for whether you would pay taxes in the US, it would be dependant on the tax laws in the US. You might want to check the IRS website or call them.

As for claims, you won't be able to claim the spousal amount for him as his income is too high. The only question is whether you would be eligible to claim the GST credit.
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