CA resident,spouse in Canada but choose to be treated as US resident


J

junzouca

My situation:

I am full-year US (in California) resident. Spouse works in Canada. She
chose to be treated as US resident and we file married filling jointly for
federal return (Failing jointly reduces tax due to her foreign tax credit
and lower rate compared to my filling separately). My income 100k (all
from California), and hers 70 k (all from Canada).

Questions for California return:

1. She chose to be US resident. Is she a California resident or
non-resident?

2. How her Canada source-income is taxed in California?

3. What is our total income taxable in California:
a) only my 100 k?
b) Me: 1/2 of 100k + 1/2 of 70k
Spouse: 1/2 of 100k (California source)
Total: 135k
c) all of our income: 170 k. (problem is California does not allow
foreign tax credit, right?)

4) Can I file married filling separately in CA since spouse has no Cali
income?

-------------------------------------
Joe



..
 
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P

parrisbraeside

My situation:

I am full-year US (in California) resident. Spouse works in Canada. She
chose to be treated as US resident and we file married filling jointly for
federal return (Failing jointly reduces tax due to her foreign tax credit
and lower rate compared to my filling separately). My income 100k (all
from California), and hers 70 k (all from Canada).

Questions for California return:

1. She chose to be US resident. Is she a California resident or
non-resident?

2. How her Canada source-income is taxed in California?

3. What is our total income taxable in California:
  a) only my 100 k?
  b) Me: 1/2 of 100k + 1/2 of 70k
     Spouse: 1/2 of 100k (California source)  
     Total: 135k
  c) all of our income: 170 k. (problem is California does not allow
foreign tax credit, right?)

4) Can I file married filling separately in CA since spouse has no Cali
income?
2 - Her Canadian source income is taxed in California to the same as
income earned in another US state, if she is considered resident/
domiciled.
3 - If she is considered resident/domiciled of California, all your
income is considered taxable in California


NOTE: You are likely considered resident for tax purposes in Canada as
your spouse is located there. I suggest you review this page:
http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html
 
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J

junzouca

responding to
http://www.beansmart.com/taxes/CA-resident-spouse-in-Canada-but-choose-to-be-treated-as-US-29378-.htm
junzouca wrote:

2 - Her Canadian source income is taxed in California to the same as
income earned in another US state, if she is considered resident/
domiciled.
3 - If she is considered resident/domiciled of California, all your
income is considered taxable in California
She lives in Canada for the whole year. She elects to be treated as US
resident. What I am not sure is his residency in California.

After she choose to be US resident, can she be non-resident of California?
in 540 NR, can she declare that she is non-resident of California?

NOTE: You are likely considered resident for tax purposes in Canada as
your spouse is located there. I suggest you review this page:
http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html


-------------------------------------
Joe



..
 

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