Canadian Resident, Dual Citizen, Working in US for summer

spock · Post by **spock** » Mon May 16, 2011 12:49 am

I have a few questions:

1. I attend professional school in Canada and will be earning income in the US over the summer. Normally, my tuition credit results in a substantial refund on my Cdn return. Do I forfeit this? Or can I claim tuition amounts on my US tax return and still get a refund? From which government?

2. If I make contributions to my RRSPs and then withdraw the amounts under the Life Long Learning Plan, would I still get a tax credit from the Canadian govt, notwithstanding that all of the income that I earn in 2011 is from US sources?

Im not sure if this is clear, but would appreciate any help.

nelsona · Post by **nelsona** » Thu May 19, 2011 10:03 am

1. The credits on your 1040 can only be those acceptable to IRS. What have you been doing so far on your 1040 with regards to these credits?

2. Yes, as long as your have RRSP contribution room and subsequent withdrawl meet the criteria of the LLP, you will get a deduction for RRSP contribution on your Cdn return. It wouldn't matter where the source of your income is.

spock · Post by **spock** » Thu May 19, 2011 10:37 pm

Nothing - i didnt think i had any. what should i be doing?

Also re: the rrsp question. If i made a contribution and then withdrew it under the llp, would i get a refund from the cdn government despite haviing to pay zero taxes to canada and only paying income taxes to the us?

Thanks!

nelsona · Post by **nelsona** » Fri May 20, 2011 7:47 am

I answered your rrsp question. rrsp contributions result in deductions not credits. You need to report your US income. Your rrsp deduction would be used against that income on your Cdn return, but not against your income on your US return.

For tuition etc on your 1040, you need to follow IRS rules.