Is it safe for me to live in the US with my Peruvian wife if we’ve been living in Canada and I haven’t filed my US taxes?

Lexi, Chatbot

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Joel Salas, EA

My name is Joel, and I am a Finance, Tax, Capital Gains and Losses, and Social Security expert with over 16 years of experience. I’m reviewing your question now and will be with you shortly. In the meantime, feel free to share any additional relevant details.

Joel Salas, EA

I understand your concerns about potentially relocating to the U.S., especially considering your wife’s background and your unique tax situation. This is clearly a significant decision involving both personal safety and complex financial obligations. Let me address the areas where I can guide you.

Joel Salas, EA

Your U.S. Tax Compliance Situation — Getting Back on Track

Think of your tax situation like a paused GPS — you’ve been off the grid, but we can absolutely get you back on the right route. Here’s your roadmap:

Immediate Tax Obligations

• As a U.S. citizen, you’ve had a legal obligation to file annual tax returns regardless of where you live.
• The IRS has programs specifically designed for situations like yours.
• You’ll likely need to file several years of back returns, but there are relief procedures available.

Your Strategic Options

1. Streamlined Filing Compliance Procedures

• Designed for U.S. citizens living abroad who haven’t been filing.
• Allows you to become compliant without penalties if you meet certain criteria.
• Requires filing 3 years of tax returns and 6 years of FBARs (Foreign Bank Account Reports), if applicable.

2. Voluntary Disclosure Program

• For more complex cases or if you don’t qualify for the streamlined program.
• Provides penalty relief in exchange for full disclosure.

Key Considerations for Your Situation

• Foreign Earned Income Exclusion (FEIE): May reduce or eliminate tax owed.
• Foreign Tax Credits: Canadian taxes paid can offset U.S. taxes owed.
• FBAR Reporting: Required if Canadian bank accounts exceed $10,000 (USD) combined at any point during the year.
• Dual Filing: You must comply with both U.S. and Canadian tax systems while living in Canada.

Residency Considerations — Financial Perspective

While I’m not an immigration attorney, here are key financial points to weigh:

Potential Advantages of Moving to the U.S.:

• Access to U.S. retirement accounts and benefits.
• Simplified U.S. tax filing once you reside there permanently.
• Different investment and estate planning options.

Financial Challenges to Consider:

• Dual tax filing during transition years.
• Possible Canadian exit tax when ceasing residency.
• Loss of Canadian tax credits or benefits.

Safety and Immigration Concerns

For the personal safety and immigration side — especially regarding your wife’s status and background — I strongly recommend consulting an immigration attorney. They can assess the current climate for Latino immigrants and mixed-nationality families in the U.S.

Final Thoughts

Your tax compliance issues are completely solvable. Many U.S. citizens abroad are in the same position. The IRS has well-established paths to resolve these matters. The key is to act proactively — file under the right program, gather your documentation, and get back in compliance.

With the proper steps, you can safely return to the U.S. without fear of penalties or complications, while ensuring your wife’s transition and legal status are protected.