@Kevin0000 , having read through the posts above and agreeing with @DaveF1006 , just wanted to add a few little items here ( mostly for awareness );
(a) when making an election to treat a Non-Resident Alien Spouse as a Resident of USA, under 26 CFR 1.6013, this remains valid till one/ both spouse cancels;
(b) it is valid for the entire year i.e. starting date of residency is 01/01/XX
(c) the "Non-Resident" spouse cannot assert any treaty benefits of the "other country" -- in your case of Canada-US treaty. This in particular applies to ( if the "non-Resident spouse" is resident of country X) passive incomes such as interest / dividend etc which are generally limited by treaty to be taxable ONLY by the resident country -- US must be allowed to tax these incomes just as it does for all US person ( citizen/Green Card / Resident for Tax Purposes );
(d) Because the "Non-Resident Spouse" earnings are foreign sourced , when Physical Presence Test is satisfied, foreign Earned Income exclusion may apply .
(e) SECA ( Self-employment taxes) may be levied-- however if you want to take advantage of the totalization agreement ( i.e. pay social security and medicare to one country but not both ) you may have to get a certificate of participation / coverage from one of the countries to show to the other.
Did I leave something out ?
pk
