I have income from USA and Canada while resident in Canada (dual citizen). How do I determine the tax credits for reporting on the 1116?

[dgcarey16]

Income from USA

• One month employment + bonus
• Social Security income for spouse and I
• US 401k disbursement for me
• US company pension for spouse and I
• Canadian company pension for me
• Canadian income from seasonal part time employment

Canadian income is eligible for exclusion via 2555 therefore taxes due on that should not be claimed via 1116, correct?  How do I calculate and record the tax credits or enter data into TurboTax on Canadian and US returns to avoid being double taxed?

[msameer]

I’m not a tax professional but here is what I’d consider:

File return in Canada, first, as you’re resident there.

File in US next as US collects taxes on your world wide income. 

You could then claim All taxes paid in Canada as Tax Credit on US returns. Make sure to use a Separate copy of Form 1116 for each category of income eg wages, interest etcinterest etc.