Hi,
I'm US citizen and worked in US during 2022.
My wife is Canadian and worked in Canada during 2022. She is neither PR nor citizen of US.
We would like to use the married filing jointly status and treat my wife as resident.
After use TurboTax to compare form 2555 and form 1116, we found form 1116 was more beneficial.
Let's say, my wife has below categories of income in Canada.
Employment Income, the amount is $A, tax deducted on it is $B.
Employment Insurance Benefits (Maternity leave), the amount is $C, tax deducted on it is $D.
RRSP Contribution, the amount is $E.
FYI, RRSP is the Canadian equivalent of the pretax 401k in the US.
1. On the generated 1040 form, we found that the foreign earned income was placed in line1h, is this expected? What should be this value? (A) or (A + C - E) or (A - E)?
2. Regarding the gross income on Form 1116, it should be (A + C), correct?
3. My wife will get some refund (Let's say, the amount is $F) based on her tax return with CRA (Canada Revenue Agency). How do we report this refund in form 1116? Use (B + D - F) in Part II directly or use F in some other lines?
