Thank you very much for your answer! - it is very helpful.
I have a follow up questions:
Can we claim all RRSP contributions or only RRSP contributed through an employer's sponsored RRSP?
If we claim RRSP using the method you suggested how do we attach the form 8833 in TurboTax?
Here is some background information:
We are dual US and Canada citizens and we both live in a border city in Canada. I commute daily to work in US and receive W2. My wife works for Canadian employer and receives a T4 that is Canadian equivalent of W2. She contributes to RRSP at work plus to additional RRSP on her own.
In our US tax return in TurboTax we assign her income as a foreign income exclusion.
Questions:
Do we need to declare her gross income or net income for exclusion?
What is the best way to reduce the US tax obligation in our situation?
