California Double Tax on Canada (Even with tax treaty)

[Cwiggin]

I've enquired with several CPA's who've mentioned that there is no way to avoid California double taxing my foreign income.

I make all my money in Canada on a 2week in and out rotation. I fly home to California on days off. I've paid all applicable taxes to Canada this year which is a departing return. I'm a new USA green card holder so I cannot file for the FEIE. Foreign tax credit will take care of the federal taxes as this is covered in the USA/Canada tax treaty however California doesn't recognize this.

I'm researching myself right now trying to ensure there isn't another way to avoid being double taxed on my income and I'm coming up empty handed. Canada already has higher taxes than the USA and I'm not open to moving or changing my job situation. Is there perhaps a way to add the California taxes on my Canadian return for next year (filing non-resident) which will alleviate some of the double taxation? Or something else?

[nelsona]

This would happen to any US resident living in a tax state, and working in Canada, unfortunately. There are a couple of Northern states that give some credit for Provincial income tax toward state tax, but that is very rare.

You should take this into consideration when deciding whether it would be worth finding a local job, rather that the tax and travel expense.= of the CDn job,

Another solution would be to become a contractor for this company, and spending a less 1/2 time in Canada, you would not owe any Cdn tax at all,

[Cwiggin]

Thank you for the feedback Nelsona