roughly 1900 most places deduct about 22% in taxes

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Hi, my wife will work in ontario for one year (2009), while i will stay in the us. she will have our 3 yrs old child with her.what is the best way to file taxes? she will earn around cad$40000, father earning is us$18000 we do not want to pay taxes in both places, and will have living expenses in both places. we are not citizens of either country, just to make it more interesting...the child is a us citizen and will stay with mom in canada. can she file her tax report in ontario as married but living separately with child and the father in the us another married but living separately? thanks dad will not have any income from canada also, both mom and dad are full time graduate students in the us. yes, she will be a full time student in the us even though she will reside in canada.

This is not an easy question. Mom is fairly easy, she will have to file a Canadian income tax return. There is not option for filing jointly in Canada anyway, so that simplifies her choices. She will claim the child as a deduction. Dad is more complicated. Did he work and live in Canada for any period? If he did, you will be considered a Canadian resident, especially with the family connection. That means he will also have to file a Canadian tax return. No matter what his residency, he will have to file a US return. If he is required to file in both places (only CRA can tell you that definitively), then he will file in the US first, then receive a foreign income tax credit when he files his Canadian taxes. This prevents double taxation, but the effect is to pay the higher rate between the two countries. I think with such a low income, odds are that, with other deductions, he will end up not paying anyway, or paying very little.