Thank you @pk.
All your understanding is correct . In addition to that I do have a kid (US citizen) living with my wife in CANADA
Request your input on Foreign tax credit. What I understand from your and @DaveF1006 explanation is that we have option to file MFJ and treat my spouse as resident Ailen as I am resident Ailen.
.Does the below text from IRS website mean that if the nonresident Ailen is treated as resident Ailen then you can't claim tax treaty benefits? Does this mean she can't get Foreign tax credit for taxes paid in CANADA?
"Generally, neither you nor your spouse can claim tax treaty benefits as a resident of a foreign country for a tax year for which the choice is in effect"https://www.irs.gov/individuals/international-taxpayers/nonresident-spouse
In 2021 year we filed MFJ. My spouse was a resident Ailen as she passed the presence test. We declared her CANADIAN income and got foreign income tax credit on the USA tax return. In 2022 she did not pass presence test
