Canada to US RSUs dual taxation

[sproulx100]

Hi!

I have a similar question to this https://ttlc.intuit.com/community/taxes/discussion/us-and-canada-dual-taxation-in-restri[product key...

But in my case, I moved from Canada (QC) on June 6th 2022 to the US (NY).

Let's say that in Canada, 80% is the proportional time that I've been in Canada for the RSUs. The remaining 20% should be in the US.

Right now my T4 (Canada) includes 80% of it, and my W-2 includes 100% of it. Obviously if I don't file anything else, I'm being double taxed on 80% of the RSUs.

Should I claim a foreign tax credit for this 80%?

If so, should I claim it in my Canadian tax return or my US tax return?

If in the US, is the form 1116 the one that I should file? Or should it be the form 2555? Is it normal that nobody generated this form for me? e.g. my employer or brokerage firm dealing with the RSUs

Thank you!

[ThomasM125 · Accepted solution]

If you paid income taxes in Canada, then you can claim an itemized deduction or credit for those taxes to the extent you paid US taxes on your Canadian income. You would need to file form 1116 on your US individual Form 1040 to get a credit for the foreign taxes paid. It is normal that no one prepared that form for you as it is a part of your individual tax filing so information from your federal tax return is necessay to complete it.

To apply for a foreign tax credit:

1. Click on Deductions & Credits on your left menu bar
2. Choose Estimates and Other Taxes Paid
3. Choose Foreign Tax Credit and answer the questions in that section