My situation:
I am full-year US (in California) resident. Spouse works in Canada. She chose to be treated as US resident and we file married filling jointly for federal return (Failing jointly reduces tax due to her foreign tax credit and lower rate compared to my filling separately). My income 100k (all from California), and hers 70 k (all from Canada).
Questions for California return:
- She chose to be US resident. Is she a California resident or non-resident?
- How her Canada source-income is taxed in California?
- What is our total income taxable in California: a) only my 100 k? b) Me: 1/2 of 100k + 1/2 of 70k Spouse: 1/2 of 100k (California source) Total: 135k c) all of our income: 170 k. (problem is California does not allow foreign tax credit, right?)
4) Can I file married filling separately in CA since spouse has no Cali income?
------------------------------------- Joe
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