Filing U.S. Tax Returns In Canada

The U.S citizens living in Canada must file their taxes even if they do not reside in the U.S. So, if you live in Canada and want to file U.S. tax returns, then you can get in touch with Filing Taxes.


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You must file your taxes every year whether you are a permanent resident or a U.S. citizen living in Canada.

Firstly, you must ask yourself a question whether you must file U.S. tax returns or not. According to the law, you must file tax returns if you are a U.S. citizen or a green card bearer living in Canada. If you are an American who has just moved to Canada or have been living in Canada throughout your life, you still have to file returns. If you live in Canada, you must file both the U.S tax returns and Canadian tax returns.

A Canadian filing U.S. tax return should stay in touch with the U.S. cross-border tax changes because tax laws keep on changing, and the changes may impact your tax filing requirements.

At Filing Taxes, you need not worry at all about filing U.S. tax returns. Life is busy these days, and one may also not understand how to file U.S. tax returns. For this purpose, you can count on us. We completely understand all the essential requirements needed to file U.S. tax returns in Canada. And therefore, we provide reasonable accounting services on cross border tax changes to our clients.

If you have any queries related to tax matters, we are happy to help you. We offer great solutions so that you always remain top on your taxes. It doesn’t matter what type of tax problem you have; you can always rely on us as we provide various tax preparation types. We understand the procedure of filing U.S. tax returns can be difficult, and thus, we are ready to assist you all through the tax filing process and reply to all your questions.

What are the tax considerations if you live outside the U.S.?

According to the law, if your income does not rise above a certain limit, you may not have to file taxes in both countries, the U.S and Canada. But if your income rises above a certain limit, you should file the general income tax form, which is form 1040. Generally, the 1040 form consists of two pages. Also, there are chances of filing other forms and scheduled along with the 1040 form.

Barring of Earned Income

One good news for the citizens. When you file form 2555, you can be free from income earned in Canada or any other income gained in a foreign country in U.S. taxation. You can apply for relief of Canadian employment income from US taxation by using form 2555. And you no longer have to use form 1116 to lower your U.S. calculated taxes on Canadian income.

Foreign Bank Account Reporting (FBAR)

The law requires you to make a report if you are a citizen of the United States, and you have financial interest gained on a foreign account that goes beyond $10,000. You have to efile the FinCEN114 to report the interest in foreign accounts. And a question also arises: what will happen if you fail to report your interest in foreign accounts?

You may attract a huge amount of fine that does not exceed $10,000. If anything like this happens, it becomes important to get in touch with the experts at Filing Taxes who will get a perception of how to report the interest in foreign accounts. With the help of tax experts, you can protect your assets and safeguard yourselves from attracting huge fines.

FBAR (Foreign Tax Credits Or Deductions)

You can claim the foreign tax credit on your United States Tax return. You must file the 1040 form annually if you are a green card holder or a U.S. citizen. If you live in Canada, you may be subjected to S.E.(self-employment) tax exemption. If the Canadian U.S. social security agreement exempts you, you will have to file a report to this exemption with the 1040 Form.

Besides filing the 1040 form every year, you can be subjected to additional tax reporting. If you own Canadian mutual funds or are a beneficiary, additional tax reporting may apply to you. If you are a beneficiary of Canadian RPPs, RESPs, RRSPs, and TFSAs, you may also be subjected to additional U.S. tax reporting.