Reporting worldwide income to two countries FTC.

[awer23456]

Hi! I'm a US and CAD dual citizen. I wanted to ask how reporting world wide income would work for both. If I made 500 while I was in Canada and paid 300 dollars on it and then made 500 in the us and paid 200 on it. Would I report 1000 worldwide income to both and then claim an FTC on the 300 for us and the 200 ftc for canada? Then pay w/e tax is left over? I didn't make anything other than just stuff I got on W2s and T4s.

[AmyC]

For the US tax return - you are required to claim all worldwide income. You can claim a foreign tax credit for the tax liability on double taxed income. You don't use the withheld amount. 

For example: File a Canada return for $800 and tax liability is $250 .You would use that $800 as double taxed and $250 for the tax liability to file Form 1116 for the foreign tax credit on the US return.