I am a Canadian citizen living in US and therefore resident of US for tax purposes. However all my income is in Canada for which Canadian tax is paid (deducted at source). My US is $0.
How do I report the Canadian income on the US 1040 ? How do I deduct tax etc.
Pls help.
Canadian in US - income reporting
Moderator: Mark T Serbinski CA CPA
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- Posts: 5
- Joined: Sat May 28, 2011 9:33 pm
You report all income on the lines you would if it were US-sourced.
To get credit for Cdn tax, you have to use one or more 1116's. Schedule A is to DEDUCT foreign tax, which is probably not your best move.
To get credit for Cdn tax, you have to use one or more 1116's. Schedule A is to DEDUCT foreign tax, which is probably not your best move.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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- Posts: 5
- Joined: Sat May 28, 2011 9:33 pm
Yes, it would be wrong, since your Cdn tax would give you 100% credit, while schedule A only gets you deduction at your marginal rate (15 or 25%).
Doing schedule A will result in all your income being taxed twice.
Doing schedule A will result in all your income being taxed twice.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing