Seriously Amy? Renouncing citizenship simply to avoid double taxation when there are other ways to ensure the tax due as a USA citizen can be offset by the foreign tax paid on that same income? I clearly stated that I have ONLY interest income sourced in Canada and the USA and that I reside in Italy so will be taxed there on my worldwide income. I understand that I will have to re-source my interest income on form 1116 so that it can then be considered Italy sourced by treaty so that I can then generate the FTC necessary to apply against the USA tax due on that same interest income. Italy taxes interest at a much higher rate then the USA does. I am not sure if a form 8833 will also be required. Most of what you said above isn’t applicable to my situation and honestly doesn’t represent good guidance.
