Can I claim a tax treaty exemption for US income, if so whic

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hotcheese
Posts: 19
Joined: Sat Apr 28, 2012 5:37 pm

Can I claim a tax treaty exemption for US income, if so whic

Post by hotcheese »

Hello,
I'm trying to determine what my situation is regarding the Tax Treaty Exemption. In 2011 I spent 9 months living and working in the US for a US company (and paid tax on that income and filed a US tax return).
Am I eligible for a tax treaty exemption? (Looking at a description of the T626 form it seems it only applies to people working abroad but for a Canadian company? Is this correct? )
Which forms should I fill in to claim treaty on the tax I have paid in the US?

Thank you.

P.S.
I am experimenting with TurboTax and if I enter my residence status on 31st Dec as being Canadian TurboTax calculates that I owe $5000, but if all I change is setting the residence to be non-resident of Canada then the calculation jumps up to $12000. WHy is there such a big difference?
nelsona
Posts: 18374
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

No. If you live in canada, you report all world income. Nothing is excluded.

What you can do is is claim foreign tax credit for the US tax. There is a line on thereturn for this.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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