California

[Subaron]

I moved to California under TN Visa last week of May 2014.

I had income in Canada till mid May 2014, before the move.

I am filing 1040 for the entire year using treaty election.

How do I exclude my Canadian source income from California? It appears California does not recognize the US Canada Tax Treaty.

Is there a way to get tax credit for taxes paid in Canada on the Canadian source income.


Alternatively, is there a way to claim taxes paid in California on Canadian income as Canadian tax credit when filing the departure T1 return?

[nelsona]

You exclude it the sam,e way all other individuals who move to california mid-year, from another state. You file the form(s) for part-year residents, to exclude income from when you were not living in California.

[nelsona]

There is no tax credit for foreign tax paid.

[Subaron]

[quote="nelsona"]You exclude it the sam,e way all other individuals who move to california mid-year, from another state. You file the form(s) for part-year residents, to exclude income from when you were not living in California.[/quote]


Thank you very much for the reply Nelsona. Much appreciated.

Was wondering if I could impose a little bit more as I am running out of time (unfortunately need to submit taxes by mid day tomorrow). :oops:


Am I correct in using California Schedule S for double taxed income?

Part 1 - Entered Canadian source income in column B and D.
Part 2 A - Entered Income Tax Paid in Canada
Part 2 B - Entered the combined amount of all Income from Canadian Sources.

Part 2 B is where I am uncertain (if Schedule S is in fact the way to go).

[nelsona]

I do not even look at state tax forms.

[Subaron]

[quote="nelsona"]I do not even look at state tax forms.[/quote]

No worries. Thanks anyways. Your comment above helped me locate that section of the form :)