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June 14, 2022
Question

I am a dual citizen. What is the best way to file?

  • June 14, 2022
  • 2 replies
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I am a Dual Citizen. I have never lived in the US and never earned money in the US. I earn money in Canada.  Can Turbo Tax help me to file affordably?

2 replies

Employee
June 14, 2022

With regard to affordability, you can shop the various Canadian versions of TurboTax here:

https://turbotax.intuit.ca/tax/software

 

And the U.S. versions here:

https://turbotax.intuit.com/

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Employee
June 14, 2022

If you are a US citizen, you are required to file a US tax return and report and pay tax on all your world-wide income, no matter where you live, that's one of the prices you pay for the benefit of US citizenship.

 

If you pay foreign taxes on the same income, you can claim a credit or deduction on your US tax return for those foreign taxes.  

 

If you lived and worked outside of the US for at least 330 days of the year, you can exclude your foreign earned income from US taxation.  Earned income is income earned from providing a service.  However, you can't exclude unearned income and must still pay US tax on unearned income (unearned income is anything that was not paid to you as compensation for providing goods and services and includes capital gains, interest, dividends, prizes, and some other things).

 

Turbotax does include both the foreign tax deduction/credit and the foreign earned income exclusion.