Canadian citizen & resident... but worked in US 3 months

[maricami]

I am a Canadian citizen and a full time resident. Last year (2008) I worked for 3 months in the US (that was my only income for 2008). I was a regular paid employee with tax deductions on my paycheck.

Will I have to pay Canadian taxes on top of what I already paid in the US ?

[nelsona]

You need to first do your US taxes, which will be repoeted onm a 1040NR plus the state tax redturn for non-residents.

Then you will report this income on your Cdn tax return, and use the tax you calculated on your US returns as a credit. The SS and medicare you paid is also considered tax.

[sanfranman]

In order to use the tax calculated on the US return as foreign tax credit on the Canadian tax return, is it necessary to have filed the US tax return first and receive a response from the IRS first BEFORE filing the Canadian return or will Revenue Canada accept a copy of my US return?

[nelsona]

No. You do need to have prepared and completed the US return, since you need to incluse a copy of iy with your w-2 to CRA.

[nelsona]

Besides, IRS never sends a 'reply' to a tax return submission. It either cashes your check or sends you one (or direct deposits). It only, usually months later contacts you if there has been an error in your return.

So, obviously, it is unreasonable to expect one to wait for something that won't come before acting on the Cdn returrn.