ThomasM125
Employee Tax Expert

Get your taxes done using TurboTax

If you are a US citizen, your employer was correct to report the income for the full year on your W-2 form. If you are a Canadian citizen, it should only have been included for the time you worked in the United States most likely. I can't comment on what would be reported on the Canadian earnings statement as I don't deal with Canada tax laws.

 

To compensate for the double taxation issue on your US tax return, you can make an entry for a foreign tax credit on your US tax return and your tax will be reduced by the amount of the tax paid to Canada up to the amount of US tax based on foreign income in 2024.

 

To apply for the foreign tax credit, go to the Estimates and Other Taxes paid section in  the Deductions and Credits area of TurboTax to assign your foreign income to Canada and enter in the foreign tax paid. Choose the Foreign Taxes option and indicate that you want to take the credit as opposed to the deduction, as it normally gives a better tax benefit.

 

 

 

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