Are there any issues concerning being on a valid H4 and stay in Canada as a Permanent Resident. This is a temporary adjustment, we do not foresee to have to do this more than a year.

•Are there any travel issues? (traveling to US) – Is it preferred to travel by car rather than entering through airports?

•Are there any US Tax implications? Should the principal H1 file taxes as a married filing separately? rather than jointly?

•Does this affect the Green Card process? We know that for the final stage; all the family members have to be in US before filing for 485. Can a family member do a short visit and go back to Canada again? Any concerns?

theoretically you can not hold H4 if principle applicant in not living in USA
H4 derives status from H1.. question is where is H1 spouse living?
if you are in USA.. she can choose to live whereever and stay anywhere..
tax implications for USA .. yes.. if she's not in country you can't get deductions for accompanying spouse, but that is if she has SSN..
Entry .. no changes.. by car might be easier but checking will still be there.. nothing to worry though, if you are with her.. if she's alone .. might be issues coz it does look suspicious..

Thanks for your reply ZCool.

The principle applicant (that is me, her husband) will be in USA... on H1. She does not have SSN either. H4's dont get SSN these days in US. So I suppose I can still file taxes as married filing jointly... Probably she can not do the same in Canada.. but thats okay.

Yes, for the entry I was wondering which way is more easier..Me going to Canada and coming back or she traveling to US... Not that we will be doing that every week but 5-10 times in a year.

any expert advise on this. Thanks again for your insight ZCool..appreciate it.

If you both have right status in US.. don't matter how you enter..
If you already have I-94.. crossing by road.. you won't need another one.. by air you have to get new one everytime.. that's the only difference.. but actually it might even be better to do it by air.. in case she ever wants to recapture H visa days for time spent outside USA..
It's not that complicated really..
Taxes are tricky.. If you hold Canadian PR too.. you are supposed to pay taxes.. now that you wife stays there.. it's definitely a tie to country.. you can't escpate Canadian taxes.. you might choose to not pay them and take a chance.. but that might cast shadow on your entire validity of PR..
Good luck.. hope all these summersaults are worth it..

Thanks.

Yes I do have a Canadina PR and probbaly we would end up paying taxes at both places...I know you are exactly right..summersaults...what a perfect word for the kind of situation we are going through...but right now looks like we have to make them .. at least till end of 2006

thanks again

you have to pay taxes in one place. either country of residence or work.
Do u live in canada. you might have to file taxes both places but pay only one place. talk to your CA

Hi,

I am also floating in the same boat and I will appreciate if u can give me your contact no. so we could discuss further on the same line.