Cdn-income tax credits on US return

Dona · Post by **Dona** » Tue Mar 13, 2018 3:19 am

I am Canadian, living permanently in the US. I became US green-card holder in November 2016. In tax year 2017, I had income in both Canada and USA.

I worked in Canada from Jan 1 to Apr 26, 2017 (physically stayed in Canada - under Cdn payroll), and worked in USA from Apr 27 to Dec 31, 2017 (moved permanently to the US - under US payroll of the same company).

My Canadian sources of income:
1. T4, from Jan 1 to Apr 26, 2017 (full time)
** I have a checking account in Canada remain open to receive any work bonuses/ CRA refund.

My US sources of income:
1. W2 from Apr 27 to Dec 31, 2017 (full time)
2. 1099-INT from

I have just filed my Cdn departure tax, and expecting a refund. I am to file my US return and include all sources of income. As it is under $66k threshold for a single to use free e-file, I gave it a try.

If I do not include Cdn income on US tax return, the system calculates and says I am getting the refund. However, if i include it, i have to pay tax.

I am confused and trying to figure out how i claim foreign tax credits (that i paid on Cdn income) on US tax return? Could you please shred some light, much appreciated!

Dona · Post by **Dona** » Tue Mar 13, 2018 3:32 am

** I forgot to mention, the reason I filed the 2017 (not 2016) as a departure tax return with CRA was that I was back to Canada after I did my port-of entry to activate my US immigrant visa, physically stayed and continued to work till April 26, 2017.

nelsona · Post by **nelsona** » Tue Mar 13, 2018 6:01 am

You do need to include your Cdn income on your US return for 2017.
The way you filed your Cdn taxes seems appropriate.

I have explained the use of forms 1116 and 2555 elsewhere. Happy browsing.

Dona · Post by **Dona** » Tue Mar 13, 2018 2:07 pm

Thank you for the pointer!