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droletjason
New Member

Does TurboTax file in such a way that respects the US-Canada Income Tax Treaty to reduce double taxation?

I am a Canadian citizen who has moved from Canada to the US during the 2018 year. I received employment income in both countries. Do I have to use both the US  and Canadian TurboTax separately to file my taxes to the appropriate country? Does it file in such a way that respects the US-Canada Income Tax Treaty to reduce double taxation?

4 Replies
pk
Level 13
Level 13

Does TurboTax file in such a way that respects the US-Canada Income Tax Treaty to reduce double taxation?

US taxes its citizens/residents  ( green card holder  or  aliens  whom have met the substantial presence test ) on world income and gives credit for taxes paid to another country.

So you have to file US return covering only US income ( if you had not the substantial presence  during 2018) or world income if you had become a resident / resident for tax purposes.

Equally you will need to file a Canadian tax return per Canada's tax laws.

TurboTax prepares only 1040 series returns ( US citizens/ residents/ residents for tax purposes ) and not  1040-NR series ( Non-resident alien with US income).

TurboTax will ask questions about treaties but s generally not geared towards raising and  resolving  treaty issues / conditions ---- this is generally aimed at US taxpayers with generally US sourced income. It work pretty well for US taxpayers whom are expats.

Is there something else I can help you with?

jamesmansour01
New Member

Does TurboTax file in such a way that respects the US-Canada Income Tax Treaty to reduce double taxation?

i have W2 and Canadian T4, can I do with Turbotax?

 

LinaJ2020
Expert Alumni

Does TurboTax file in such a way that respects the US-Canada Income Tax Treaty to reduce double taxation?

If you are a US citizen or resident, you are required to report worldwide income including the Canadian income on your US tax return Form 1040.  As far as your Canadian taxes, you will have to check with the Canadian tax authority for the filing requirements.  To file your Canadian return, click here: TurboTax Canada

 

The income tax treaty is out of our scope for advising purposes.  You might need to consult a tax attorney or tax professional who is specialized in this aspect. 

 

@droletjason

 

 

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LinaJ2020
Expert Alumni

Does TurboTax file in such a way that respects the US-Canada Income Tax Treaty to reduce double taxation?

Yes, if you are a US citizen or resident, you can file with TurboTax.  You will be required to report worldwide income including the Canadian income Form T-4 on your US tax return Form 1040.  As far as your Canadian taxes, you will have to check with the Canadian tax authority for the filing requirements.  To file your Canadian return, click here: TurboTax Canada

 

To enter a Canadian form T-4 in the program, first to convert Canadian dollars to the US dollars, then follow these steps:

 

In TurboTax online,

  • Sign in to your account, select Pick up where you left off 
  • At the right upper corner, in the search box , type in foreign income and Enter 
  • Select Jump to foreign income 
  • Next screen, Did You Make Any Money Outside the United States? answer Yes 
  • On screen, What Form(s) Was Foreign Income Reported On? Select a statement from my foreign employer
  • Follow prompts to enter info

To enter your From W-2, here are the steps:

  • At the right upper corner, in the search box, type in "w2" and Enter
  • Select "Jump to w2"
  • Follow prompts

 @jamesmansour01

 

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