Hi. I am US citizen living/working in Canada. For the first time this year I have interest on my Canadian bank account. There seems to be a lot on this forum about how to deal with Canadian tax on US interest but I'm having trouble figuring out the reverse. How do I reduce my double-taxation on Canadian interest?
Thank you all in advance for the help!
US tax on Canadian interest
Moderator: Mark T Serbinski CA CPA
Your report the tax on your 1040 schedule B, along wth all other interest. You then report the Cdn tax (it is the prorated portion of your overall Cdn tax on your overall Cdn income) and claim this as a credit using form 1116 along with any other Cdn passive income.
In any event, unless you are earning 10000's in interst, it is unlikely that any of it would be taxable even without claiming Cdn tax as a credit.
In any event, unless you are earning 10000's in interst, it is unlikely that any of it would be taxable even without claiming Cdn tax as a credit.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best