# Canadian citizen/residents and form 2555



## Incheo99 (Jun 3, 2012)

Before my wife moved into USA, my Canadian tax filer always filed form 2555 to exclude my wife's Canadian earned income in my US tax return (married filing jointly). However I have recently read something in the internet, saying that one filing jointly with a non-resident alien spouse cannot file the 2555 to claim the Foreign Earned income Exclusion (FEIE). Appreciate very much if anyone could clarify this!


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## Bevdeforges (Nov 16, 2007)

This would be a bit easier to answer if you told us who has what nationality here.

For the moment, I'll assume YOU'RE the US citizen and your wife is Canadian. In any event, if you are living overseas (including in Canada), only the US citizen needs to or should file a US tax return. If your wife isn't a US citizen, then you shouldn't be filing jointly - you should file as married, filing separately. That way you simply leave off her income altogether and only report your own. (Plus your share of any joint income.)

If you file jointly with an NRA spouse, it's considered an option (usually taken in the year you arrive in the US or the year you leave the US) - and it means you both are treated as US residents for the full year and thus ineligible for any tax treaty benefits, including the FEIE.
Cheers,
Bev


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## Incheo99 (Jun 3, 2012)

Bevdeforges said:


> This would be a bit easier to answer if you told us who has what nationality here.
> 
> For the moment, I'll assume YOU'RE the US citizen and your wife is Canadian. In any event, if you are living overseas (including in Canada), only the US citizen needs to or should file a US tax return. If your wife isn't a US citizen, then you shouldn't be filing jointly - you should file as married, filing separately. That way you simply leave off her income altogether and only report your own. (Plus your share of any joint income.)
> 
> ...


Thanks, Bev,

I should have included the nationality info in my previous post. Bot my wife and myself are Canadian citizen and I moved into USA a few years earlier than my wife. My tax filler filed married filing jointly for us to have a higher standard deduction, quoting "The non discrimination provision applies" in Article XXV. as per your reply, the filler was not right in filing married filing jointly and claiming the FEIE for us in that few years?
Best!


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## Bevdeforges (Nov 16, 2007)

I'm hearing from various sources that many Canadian filers have been advising their clients to file jointly, even when married to an NRA. As far as I know, this is incorrect, but if the IRS hasn't come back on you about this, I wouldn't bother to amend or anything.

Normally the IRS will only question something if it results in you paying (significantly) less taxes than what you owe had you filed correctly.
Cheers,
Bev


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## Incheo99 (Jun 3, 2012)

Bevdeforges said:


> I'm hearing from various sources that many Canadian filers have been advising their clients to file jointly, even when married to an NRA. As far as I know, this is incorrect, but if the IRS hasn't come back on you about this, I wouldn't bother to amend or anything.
> 
> Normally the IRS will only question something if it results in you paying (significantly) less taxes than what you owe had you filed correctly.
> Cheers,
> Bev


Bev, thank you very much for your explanation! Anyway I will not have a chance to do it again. I will pass this info to the filler too (not sure if the filler will accept this).
Appreciate very much!


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## swisspinoy (Jun 3, 2012)

Bevdeforges said:


> This would be a bit easier to answer if you told us who has what nationality here.
> 
> For the moment, I'll assume YOU'RE the US citizen and your wife is Canadian. In any event, if you are living overseas (including in Canada), only the US citizen needs to or should file a US tax return. If your wife isn't a US citizen, then you shouldn't be filing jointly - you should file as married, filing separately. That way you simply leave off her income altogether and only report your own. (Plus your share of any joint income.)
> 
> ...


There may be some benefits for some filing jointly, such as differences with Roths, social security, estate tax and so on. Yet, it seems even less logical for non-US citizens abroad to pay US taxes than Americans abroad.


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