Dual Canadian/African Citizen Living/Working in US: Taxes?

Very simply, a Canadian (native born) citizen moved as a child to another country in Africa where parents were born and lived there until age mid 20s. Moved back to Canada at age 25, looked for work, never found one and was on public assistance for 3 months. Found job in USA and have worked there for 15 years paying and filing US taxes. Never filed taxes in Canada. Never had income other than 3 months of public assistance in Canada.....and oh, non-canadian spouse was sponsored to get permanent residency in Canada....landed but returned to live/work with Canadian/African in the US....again never found job in Canada.
African/Canadian is a permanent US resident but may move back to Canada with family in future.
Kindly help with the nagging questions:
1. Should Canadian taxes be filed? By law or optional?
2. If optional, any advantages or disadvantages for/against filing?

Regards
Rabby

You would not have to file Canadian taxes unless you had some financial ties to Canada, such as real estate, bank accounts etc.

If you have never had Canadian income, and have not been resident there, you wouldn't need to have filed taxes.

Unlike the US, Canada does not continue to gouge you after you've left.

Should have filed for the income 15 years ago unless you were under the reporting limit, but other than that, no, you don't have any requirement to file.

Obviously if you move back you will have to start filing, from the sounds of it you're waiting until you become US citizens.

US citizens must file a US tax return every year regardless of where they live, if your income is under $87,600 this is usually not a big deal as there is no US tax to pay (and even above that you've got to be around $100,000 before you pay anything but pennies), but you must file a 1040 and a 2555-EZ every year.

If you move to Canada as a US LPR, you basically have to give up your US LPR status because US LPRs cannot move their tax home to another country and retain their status. (And in any event, simply being outside the US for more than a year as a US LPR usually invalidates your status).

So if you are thinking of moving back to Canada and want to retain the ability to live in the US, you need to wait until you get citizenship.

Thanks Steve
Thanks Reba
Very useful and reassuring information.

Will the spouse lose her landed immigrant status in Canada?

R

Not if they co-habit with a Canadian citizen spouse.

Canada isn't as though on this situation as the US, if you claim permanent residency then technically that makes you resident for tax purposes, but the CRA doesn't seem to have a problem when Canadian LPRs move their tax home abroad if they are accompanying a citizen spouse.

Although I suppose it depends on whether it ever comes up in court, a judge may take a different view.