This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.
I am US citizen, living/working in Canada for the second half of 2010. I want to avoid being doubly taxed on US dividends during the time I was in Canada. My tax software doesn't seem to be doing this part for me and the instructions are a bit vague. It seems to claim US credit, I just fill out worksheet on the back of Pub. 514 and then I enter the result on a Form 1116. Do I use a separate Form 1116 for this or do I add it to my "general income" Form 1116? Do I need to send in other documentation? Is it better to instead claim the credit against Canadian taxes?
It appears that readtheform was a USC and resident of Canada when these US dividends occurred. So US gets first dibs on the taxes. I think he/she needs to collect the FTC on their Cdn return (up to the 15% treaty rate) and then anything above that by re-sourcing on his US return.
It wasn't really obvious to me that he was referring to recovering tax above the 15% treaty rate. I don't see how you were able to make that assumption from what he wrote. In any case, I just hate to see anybody mislead by an "incomplete" answer.
