I'm a US citizen living in Canada. From prior forum queries, my understanding is that taxes paid to a US state can be claimed for a FTC in Canada (in addition to Social Security and Medicare taxes). However, this seems to conflict with the general treaty principle that since a non-citizen of the US would not have to pay those state taxes, US state taxes cannot be claimed for a FTC (consistent with other things like bank interest received in the US). Any clarification on this issue would be much appreciated.
Thank you!
US state taxes for Canada FTC
Moderator: Mark T Serbinski CA CPA
You should only be paying State tax on wages earned IN that state, or property held IN that state. Nothing else. So, since that would apply to anyone, it can be claimed as foreign tax credit on your Cdn return.
If you live in Canada, you should not be paying state tax on any other income.
If you live in Canada, you should not be paying state tax on any other income.
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