retired US Citizen married to Canadian both living in Canada with US retirement income.

Forum|Forum|1 year ago
October 30, 2024
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I'm a retired US citizen living in Canada. I'm married to a Canadian green card holder. I'm recieving SS and my wife is recieving both SS and US retirement income. I know we need to file in both the US and Canada, but am confused where to file first and which contry to report what income to. We also have a small farm in Canada and own Canadian real estate.

Best answer by vithalanin

As you are a US citizen, you are required to file a global tax return. Both of you will first prepare and file the Canadian Tax return. You will then prepare and file a US tax return with your global income. You will report your Canadian farm income and rental properties in this US return. You will then claim a foreign tax credit for the taxes paid to Canada as per the US – Canada treaty.

https://www.irs.gov/newsroom/reporting-foreign-income-and-filing-a-tax-return-when-living-abroad

vithalaninAnswer

https://www.irs.gov/newsroom/reporting-foreign-income-and-filing-a-tax-return-when-living-abroad

ziggy1465Author

Thank you, just to be clear, I do our Canadian taxes before our US return?

To confirm I'm a US citizen resident in Canada reciving US SS. My wife is a Canadian with US green card residing in Canada and recivieng US SS and a US pension (CalPers). We've a small Canadian farm and a Canadian rental.

I feel like I'm in a catch-22. This year we did first complete our individual Canadian tax returns, but were asked by CRA how much US tax we had paid (i.e. as a deduction). Since I hadn't completed our US taxes yet I couldn't answer. Am I missing something?

to report So my question is, if we first complete our Canadian tax return.

vithalanin

Yes, you do your Canadian Taxes first. Canada was asking you about US taxes paid to ensure you did not pay taxes twice. You would file the US return second as you are a US citizen. I understand that this feels like a catch 22, but it is not. You use your Canadian return to ensure that the taxes paid to them get credited in the US tax return.