Hello,
I'm trying to determine what my situation is regarding the Tax Treaty Exemption. In 2011 I spent 9 months living and working in the US for a US company (and paid tax on that income and filed a US tax return).
Am I eligible for a tax treaty exemption? (Looking at a description of the T626 form it seems it only applies to people working abroad but for a Canadian company? Is this correct? )
Which forms should I fill in to claim treaty on the tax I have paid in the US?
Thank you.
P.S.
I am experimenting with TurboTax and if I enter my residence status on 31st Dec as being Canadian TurboTax calculates that I owe $5000, but if all I change is setting the residence to be non-resident of Canada then the calculation jumps up to $12000. WHy is there such a big difference?
Can I claim a tax treaty exemption for US income, if so whic
Moderator: Mark T Serbinski CA CPA
No. If you live in canada, you report all world income. Nothing is excluded.
What you can do is is claim foreign tax credit for the US tax. There is a line on thereturn for this.
What you can do is is claim foreign tax credit for the US tax. There is a line on thereturn for this.
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