Working in US, Spouse working in Canada- Help with taxes

[bmore321]

I am a Canadian and American Citizen. I left Canada in 2005 and has never filed tax since then. My wife is a green card holder and currently working in Canada with a temporary work permit. ( She started living there in Sept 2013). She is going to remain there as I have currently gotten a job close the border.


Self
- Work and live in the US ( Citizen)
- no savings or RRSP in Canada

Spouse
- US green card holder.
- Works and live in Canada Since Sept 2013.


How do we file our 2013 taxes?

Can we file joint in the US ?

Can she file married filing separately in Canada and get credit for the US taxes?

Can we claim her relocation to Canada in our US taxes?

 

[jes_ON]

Can we file joint in the US ?
Probably. But it might not be worth it.

Can she file married filing separately in Canada and get credit for the US taxes?
All returns are technically "separate" in Canada, even though you have to disclose about your spouse.

For employment income earned while residing in Canada, she would pay Canada first, and get credit in the US for taxes paid in Canada. She would only be a part-year resident of Canada - any income earned in the US before she moved to Canada would not be reported to the CRA.


Can we claim her relocation to Canada in our US taxes?
Probably - http://www.irs.gov/publications/p521/ar02.html