Uncle Sam Strikes Again

We have the worst luck when it comes to taxes. Prior to having a home and children, my accountant always said I had no deductions because I didn't have them. Then when I bought a home, the interest was low so it made little difference, but I was ok with that since I wasn't paying a lot on interest to begin with. Two years later when I delivered my first born, I was told I made to much to really have the benefit of having a child (I should have done it when I was in school).

So for 2008 taxes, I was excited thinking I will get a lot back because I was paying regular taxes in my regular tax bracket, but my income was slashed in half since I only worked half a year. Well, come to find out, Uncle Sam treats Peter as an American even if the rest of the governmental division doesn't. So instead of getting thousands back as I expected, we have to pay on Peter's income in Canada. In additon, Peter's income is a stipend so it's in a complete different tax bracket (higher than normal).

I almost died when the accountant told me Peter is considered an "alien resident" since we have been filing married jointly since we got married. So apparently, I have accepted him as an "American." Too bad they can't just grant him citizenship since I accepted him as an "American." I guess this is just another twist in my crazy life.