{"id":35,"date":"2020-01-28T06:33:33","date_gmt":"2020-01-28T06:33:33","guid":{"rendered":"http:\/\/capitaltaxltd.com\/canada\/?page_id=35"},"modified":"2021-02-25T17:29:04","modified_gmt":"2021-02-25T17:29:04","slug":"us-tax-filing","status":"publish","type":"page","link":"https:\/\/www.capitaltaxltd.com\/canada\/us-tax-filing\/","title":{"rendered":"US Tax Filing For Americans Living in Canada"},"content":{"rendered":"<div style=\"padding-bottom:20px; padding-top:10px;\" class=\"hupso-share-buttons\"><!-- Hupso Share Buttons - https:\/\/www.hupso.com\/share\/ --><a class=\"hupso_counters\" href=\"https:\/\/www.hupso.com\/share\/\"><img decoding=\"async\" src=\"https:\/\/static.hupso.com\/share\/buttons\/share-small.png\" style=\"border:0px; padding-top:2px; float:left;\" alt=\"Share Button\"\/><\/a><script type=\"text\/javascript\">var hupso_services_c=new Array();var hupso_counters_lang = \"en_US\";var hupso_image_folder_url = \"\";var hupso_url_c=\"\";var hupso_title_c=\"US%20Tax%20Filing%20For%20Americans%20Living%20in%20Canada\";<\/script><script type=\"text\/javascript\" src=\"https:\/\/static.hupso.com\/share\/js\/counters.js\"><\/script><!-- Hupso Share Buttons --><\/div><h1>Income Tax For American in Canada<\/h1>\n<p>American living and working in Canada? All US citizens and green card holders living in Canada need to file tax returns to the IRS. Income that is subject to tax includes, salaries &amp; wages. Also subject is dividend, interests, capital gains, rental income and other types of income. Income Tax For American in Canada<\/p>\n<h2><b>Penalty for non-filing and payment of taxes\u00a0<\/b><\/h2>\n<p>Are you a green cardholder? The consequences of non-filing could include\u00a0 non-renewal of your green card. Or even denial of your application for citizenship!<\/p>\n<h2><b>Date of filing For Americans in Canada<\/b><\/h2>\n<p>Federal tax returns due before April 15.\u00a0 But if you have no tax due and you are presently residing overseas, you are given until June 15 to file your Federal tax returns. If you fail to file on time, you can request for another six month extension.<\/p>\n<h2><b>Exclusion of Foreign Income<\/b><\/h2>\n<p>You are an American and you meet the \u201cPhysical Presence Test\u201d or the \u201cBona Fide Resident Test\u201d . If so\u00a0 Foreign Housing Exclusion\u00a0 and Foreign Earned Income Exclusion might apply.<\/p>\n<p>Generally, foreign earned income embraces salaries, wages, professional fees or other payments obtained for personal services executed or done overseas<\/p>\n<ul>\n<li>Car, home, and a range of other reimbursements and allowances called \u201cNon cash income\u201d<\/li>\n<li>Rent expense that include rent of accessories and furniture<\/li>\n<li>Repairs<\/li>\n<li>Fair market value of employer provided housing<\/li>\n<li>Utilities except telephone charges<\/li>\n<li>Residential Parking<\/li>\n<li>Fees for obtaining a lease hold that is not refundable<\/li>\n<li>The maximum Foreign Earned Income Exclusion for tax year 2020 is $107,600.<\/li>\n<\/ul>\n<h2><strong>FBAR Penalties<\/strong><\/h2>\n<p>As a US person you are required to file Form 114, or FBAR (Report of Foreign Bank and Financial Accounts) where you need to list down your foreign financial accounts with a combined annual total of $10,000 in any calendar year.<\/p>\n<p>Do you have undisclosed foreign assets?\u00a0 The 2011 OVDI or Offshore Voluntary Disclosure Initiative allowed you to report this on or before August 31, 2011. However, due to the overwhelming interest in the program, the program changed in 2012 and now extended.<\/p>\n<p><strong>You have not filed US Tax returns yet?<\/strong>\u00a0 You can still\u00a0 qualify for the Offshore Voluntary Disclosure program. The IRS may end the program at any time so best to file now. The 2012 OVDP has a higher penalty rate than the previous programs, but offers clear benefits to encourage taxpayers to disclose foreign accounts now . Otherwise, risk detection by the IRS and possible criminal prosecution.<\/p>\n<p>The IRS is resolutely determined to find you. There is nowhere for you to hide since the IRS has the means to obtain this information either through tax treaties or from reports of whistleblowers. Now,\u00a0 with FATCA , Canadian banks will share you information\u00a0 to the IRS.<\/p>\n<h4>Income Tax file For American Living in Canada<\/h4>\n<p>Again, are you an American living and working in Canada? contact Capital Tax can help you file your U.S. Taxes.<\/p>\n<p>For more information on Income Tax file For American Living in Canada. Please see the following articles<\/p>\n<p><a href=\"https:\/\/www.capitaltaxltd.com\/canada\/2017\/03\/10\/united-states-internal-revenue-service-warns-expats-to-pay-up-or-surrender-passports\/\">Pay up or surrender your U.S. passport<\/a><\/p>\n<p><a href=\"https:\/\/www.capitaltaxltd.com\/canada\/2015\/09\/02\/the-fbar-filing-deadline-has-changed\/\">FBAR Deadline<\/a><\/p>\n<p>&nbsp;<\/p>\n<h5><\/h5>\n<div class=\"taxes_start\"><span class=\"txt\">Start your taxes now\u00a0<\/span><span class=\"button_text\"><a href=\"http:\/\/capitaltaxltd.com\/canada\/contact-us\">Get Started<\/a><\/span><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Income Tax For American in Canada American living and working in Canada? All US citizens and green card holders living in Canada need to file tax returns to the IRS. Income that is subject to tax includes, salaries &amp; wages. Also subject is dividend, interests, capital gains, rental income and other types of income. Income [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":36,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":{"0":"post-35","1":"page","2":"type-page","3":"status-publish","4":"has-post-thumbnail","6":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<meta name=\"description\" content=\"American living in Canada? You must file an income tax return each year to the IRS. 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