We know U.S. Taxes.
We know the tax laws on both sides of the border. We have H&R Block Tax Professionals located across Canada that specialize in U.S. taxes. They can help you with your filing requirements, both in the U.S. and Canada.
U.S. tax services:
- Preparation of U.S. federal and state income tax returns for you and your family
- U.S. tax calculations
- U.S. and Canada treaty benefits
- Coordination of U.S. and Canadian deductions and credits
- Assistance with correspondence from the Internal Revenue Service
What You Need to Do to File your U.S. Taxes
As a U.S. citizen resident in Canada you must file BOTH a Canadian return and a U.S. return. Fortunately, you may not have to pay taxes in both countries, as there are ways to ensure you're not doubly taxed. In addition to the 1040 form, you may be subject to additional U.S. tax reporting if you own or are a beneficiary of Canadian mutual funds, TFSAs, RESPS, RRSPs or RPPs.
Earned Income Exclusion
Form 2555 is a special form excluding foreign earned income from taxation in the United States. Ask us how to claim this exclusion.
Foreign Tax Credit or Deductions
Another way to avoid double taxation is by claiming a foreign tax credit on your U.S. return for taxes you are required to pay to Canada. To find out how to claim this, make an appointment with an H&R Block U.S. Tax Professional.
There is a United States-Canada Income Tax Treaty that may affect your U.S. tax return. Article XXIX of this treaty states that there is nothing in the treaty that can prevent the United States from taxing its own citizens. Even though this provision exists, the treaty does provide some exemption and/or deferral opportunities for U.S. Persons. For more information on gaining exemptions from this treaty, visit an H&R Block office today.
If you live outside the U.S., you have an automatic extension of two months to file your U.S. tax return. In other words, your U.S. return is due on June 15 each year, rather than April 15. This provides additional time for you to complete your Canadian return and determine your Canadian tax liability. This is needed in case you have to claim the foreign tax credit on your U.S. return. While you have until June 15 to file your US tax return, the IRS will begin assessing interest on any unpaid balances on April 15th.