I have filed my taxes with Turbo Tax for many years. I am a recent resident in Canada, but I remain a US citizen. I understand that I need to report my income in both countries and file a tax return in each. My problem is understanding the sequence I need to go through. I sold some stock in the US and I will receive a K1 for some profits this year. I also have income in Canada. The company that will issue the K1 has filed with the IRS for an extension for their corporate taxes and I have been informed that I will not receive my K1 until early this fall. I however need to file my Canadian taxes now (I am self employed - so my return is due in June) and will not file my US return until the fall. My question is how do I sequence the preparation. My understanding is that I need to report all of my income on both tax returns. I will owe tax to Canada on my total income, but I will offset the amount owed by reporting the tax that I paid on US derived income to the IRS and visa versa. I'm having a real hard time wrapping my head around how to do this. While I have an estimate of my K1 income (+ or - a thousand dollars), at best it seems I need to fill out a tax return for the US estimating my taxes there, fill out the Canadian return using the estimated income and estimated US tax, then in September I will fill out the real US return with the real amounts and then use those figures to complete a revised tax return in Canada. (and most likely one or both of the agencies will advise me of some change to the tax calculation which will result in needing to file another round of revised returns) This seems too difficult and convoluted - I'm convinced I am making this too complicated and there is an easier process. What am I missing?
I highly recommend you seek local professional assistance with the CA return and they will probably be able to tell you what to do with the US return ... most likely you will get a foreign tax credit on the US for the taxes paid to CA.
Then when you know what you are doing you will need 2 TT programs ... one for the US and another for CA ... maybe the CA forum can help with your questions ... (all the CA screens have the red maple leaf on them to differentiate them from the US program) ...
TurboTax Canada Support
Also of note ... the time to file may be 10/15 if you filed an extension however that did not extend the time to pay so if you will owe and did not make a payment with the extension form then you really need to either send in a payment asap or file asap.
That would be great - however I have contacted every tax professional within 100KM and gotten the same answer from each "Sorry - we don't deal with anything involving US taxes" - I live in a very rural area, and due to current COVID restrictions not allowed to travel outside my home municipality. That is why I turned to this forum for ideas.
You may need to call folks further away like a major city or border town ... you don't actually have to physically go to an office these days as most can be done electronically or thru snail mail. Post your question in the CA forum and see what advice you get there.