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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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2013 CRA Wife Tax Filing – Amendment Matter Wife, a canadian

Customer Question

2013 CRA Wife Tax Filing – Amendment Matter
Wife, a canadian citizen attended college in 2013 under F1 Student visa in USA
Wife married husband a US citizen in July 2013.
In 2013, prior to the marriage husband paid Wife $100,000 recorded as expense to husband C “BC” corp Admin Services on 1120F. Wife filed 2013 taxes and paid self employment tax on $100k to CRA. No tax is due CRA. Wife and Husband filed USA joint married in 2013 and did not take a foreign tax credit.
Should the Wife CRA return be amended and the couples joint 2013 IRS return be amended foreign tax credit?
Submitted: 1 year ago.
Category: Tax
Expert:  retireddebra replied 1 year ago.

Your question appears to be about taxes in the US. It that correct?

Right now is it is on the Canad***** *****st but I can ask the site to move it if necessary.

Customer: replied 1 year ago.

YES CORRECT

Expert:  retireddebra replied 1 year ago.

I will ask the site to move this.

Customer: replied 1 year ago.

i still have not received an answer or seen this moved

Expert:  Lev replied 1 year ago.

If you want to claim a foreign tax credit on the US tax return - yes - that 2013 tax return should be amended in order top claim such credit.
However - you would not be able to claim a foreign tax credit for self-employment taxes - only for income taxes paid in Canada.
Regarding self-employment taxes - we need to be crear where services were performed and whether the person was classified as a resident alien or as a nonresident alien in the US.
If the wife is a nonresident alien (based on her visa status) and services were performed outside the US - she woudl not be subject to self-employment taxes in the US.

Please follow up to ensure understanding.

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