Do you know much about dual citizen’s Canadian and American and filling taxes in both countries and what deductions are available?

Not experienced in preparing Canadian returns and not in a hurry to learn.  About twenty years ago a fellow asked me to prepare a return for Quebec, I think.  So I said sure and ordered a book to learn the rules.  When the book came it was in French.  LOL. 

That said, I do understand the interaction of taxes between the two countries.  I have several Canadian citizens that have lived in the US for years.  When they have taxable income there they have a firm in Canada prepare it or in many cases the tax is just withheld?  So when I get the information there are two issues.  First, is the income taxable here?  For that I have a copy of the Canada – US tax treaty and it is pretty easy to determine if the income is taxable here, Canada or both countries. 

If the income is taxable in both countries you would get a credit on the US taxes for the taxes paid in Canada.  For example we had a client who sold a rental property in Canada a couple years ago.  It was taxable here too.  He got a credit here which offset most the income.

This blog is a collection of questions from clients and the answers.  The goal of the blog is not to answer the questions you might have.  Most times the answers are based on each client’s personal situation.  Please do not rely on this information to make important financial and tax decisions.  The advice presented here is presented to give examples of the type of information you get as a client of a true tax professional, like Ray Simmons and the preparers he employs.  Advice regarding similar issues for you should be based on your personal situation. 

Treasury Department Circular 230 Notice. “To ensure compliance with Treasury Department Circular 230, prospective clients are hereby notified that: any discussion of Federal Tax Issues contained or referenced to in this communication is not intended or written to be used and cannot be used by the prospective client or investor for the purpose of avoiding penalties that may be imposed on them under the Code.” Such discussion is written in connection with the promotion or marketing by Ray Simmons Corporation of the transactions or matters addressed in this correspondence.


About taxdude8422

Basically I am just a tax nerd, have been all my life. However I have found the more open you are to opportunities the better off you will be in this world. That makes my what is know as an open networker on Linkedin, I will connect with anyone. I am not an expert on Linkedin by any means but one day when I was asking someone to connect I mentioned that I had just been refilled on invites. My new connect asked how I did that. I used that same line for the next month and got asked the same question four times. I started thinking there was a lot of little things it took my sometime to learn. Through this blog I plan to share some of those "Linked Secrets"
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