Hi pk:
Thank you for your questions.
(1)(2): yes, you are correct and we are from the country that does not have a tax treaty with US and Canada. We hope not to disclose too much personal information here unless needed.
(3): yes, basically my husband does not need to file US tax but if filing together, this can lower my overall US tax bracket by doing MFJ after calculation, instead of MFS myself.
(4) yes
(5) yes
(6) The main purpose is to reduce my US Federal income tax after calculation by MFJ as compared to MFS. The foreign tax credit for my husband's Canada tax return is an incidental benefit. We are aware this will not legalize his immigration status.
Question1: do we use CAD<->USD exchange rate on the date of tax return submission on TT?
Question2: to claim foreign tax credit for his Canadian tax return, will it be half of the overall US federal + state income tax in MFJ?
Many thanks,
YTY
