I%26#039;m a Canadian working in U.S during 2007 for more than 183 days. I would like to know if there any special to file income taxes on both Canada and U.S sides? If anyone has such experience before, please share with me. Thanks
P.S: My understanding is to file the taxes for both countries under the normal ways and then claim the foreign tax credit. Is this approach correct or any other tricks.
How to file income tax under Canada-U.S income tax treaty?
Start by reading publication 519.
If 2007 was your first year in the US, you probably have to file a %26quot;dual status%26quot; return. There is a sample in the publication.
The goal of the dual status return is to try and exclude any Canadian income from before (if this is your first year in the US) or after (if this is your last year) your time in the US. By excluding it, there isn%26#039;t a need for a form 1116 to avoid double taxation.
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