Canadian in US - income reporting

stockinvestor_00 · Post by **stockinvestor_00** » Sun Jun 05, 2011 1:36 pm

I am a Canadian citizen living in US and therefore resident of US for tax purposes. However all my income is in Canada for which Canadian tax is paid (deducted at source). My US is $0.

How do I report the Canadian income on the US 1040 ? How do I deduct tax etc.

Pls help.

stockinvestor_00 · Post by **stockinvestor_00** » Mon Jun 06, 2011 8:18 am

Also which forms need to be filled. I am getting conflicting information. Some say deduct the tax paid using Schedule A. Others advise filling up the Form 1116

Any help is appreciated.

nelsona · Post by **nelsona** » Mon Jun 06, 2011 8:56 am

You report all income on the lines you would if it were US-sourced.

To get credit for Cdn tax, you have to use one or more 1116's. Schedule A is to DEDUCT foreign tax, which is probably not your best move.

stockinvestor_00 · Post by **stockinvestor_00** » Mon Jun 06, 2011 9:19 am

I was leading towards using Schedule A as it seems to be the easy form. 1116 is too complicated to fill up.

Would using Schedule A be wrong ?

nelsona · Post by **nelsona** » Mon Jun 06, 2011 3:24 pm

Yes, it would be wrong, since your Cdn tax would give you 100% credit, while schedule A only gets you deduction at your marginal rate (15 or 25%).

Doing schedule A will result in all your income being taxed twice.