Hi,

I am taking up a job in Canada this month with my landed immigrant status.
I have filed my 2005 US tax return as MFJ. My wife will continue to work in US for at least next one year. Please advice on the following:
- What is my filing status for my 2006 US tax return? I think MFJ resident. Is there any advantage if my wife works in US and maintain the residency in Canada (such as working in border state)?
- Any advice to save double taxation.
- What are the tax implications on Canadian side?

Thanks for your time and help.
Regards

Thomas

If you are a U.S. citizen, you must pass taxes on worldwide income. However, you can claim a credit for the taxes paid to Canada.

You will file MFJ.

As for Canadian taxes, I have no expertise there.

Thanks ATE,

I am not an US citizen, but on a H1 status which will expire in Oct. In this situation, do I have to pay tax to US for my canadian earnings?

Once again thanks for your help.

Yes, because as a H-1 visa holder who files as a resident alien, ALL of your world-wide income is subject to U.S. tax, at least for 2006.

Now, you MAY want to investigate filing an expatriate dual-status return. It's somewhat complicated, but a careful reading of IRS Pub 519 (which can be download from www.irs.gov) should allow you to determine if it is advantageous to file such a return.

ATE, Thanks for your useful advice.

Glad to help!

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