Aliens and U.S. Citizens Living Abroad > Canadian & U.S. Tax Issues

Aliens and U.S. Citizens Living Abroad - Canadian & U.S. Tax Issues

Rev. date: 08/04/2012

As a U. S. citizen living in Canada you:

Are required to file annual U.S. income tax returns and may be required to file certain information returns if applicable (e.g. Form 8891, U.S. Information Return for Beneficiaries of Certain Canadian Registered Retirement Plans; Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts; TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR)).
Must report your worldwide income on your U.S. income tax return if you meet the minimum income filing requirements for your filing status and age.
Must contact the Canadian Government to determine whether you must file a Canadian tax return and pay Canadian taxes.
May be able to elect to exclude some or all of your foreign earned income, if certain requirements are met, or to claim a foreign tax credit if Canadian income taxes are paid.

Additional Information

Rev. date: 08/19/2012

Benefits paid under the Canada Pension Plan (CPP), Quebec Pension Plan (QPP), and Old Age Security (OAS) program:

If the recipient is a resident of the United States—
- are taxable only in the United States if the recipient is a resident of the United States,
- are treated as U.S. social security benefits for U.S. tax purposes, and
- are reported on Form 1040 (PDF), U.S. Individual Income Tax Return or Form 1040A (PDF) on the line on which U.S. social security benefits would be reported.
If the recipient is a U.S. citizen or green card holder who is a resident of Canada—
- are taxable only in Canada.

NOTE: Refer to Tax Topic 423 for information about determining the taxable amount of your benefits.

Additional Information