While the world may think that being a US citizen is a matter of great honor, the status at the same time comes with a lot of responsibilities like filing expatriate tax returns every year especially when you live in Canada. The United States government is one of the very few governments to have adopted this policy and as a result, you are required to do the typical tax return based on income earned either as a citizen or permanent resident, along with the disclosure of assets that remain in the bank accounts of foreign countries through FinCEN Form 114 (FBAR).

However, as the procedure for Americans isn’t that easy when it comes to filling the taxes, therefore, we decided to help you in the matter by enlightening you about all the important information regarding the issue which you would have only got to know through your Canada expat tax consultant, otherwise.

1. Who Is A Resident In Canada?

Just like in any other part of the world for US citizens, the residency status has a great impact on the taxes in the eyes of the Canadian Revenue Agency. The authority usually qualifies the following people as residents.

• If you own a home within Canada
• If you have a spouse, partner, or kids in Canada living in the country for long.
• If you have bought personal property in Canada
• If you have any economic or social ties to Canada

Moreover, just when that alone is not enough,  non-residents staying in Canada over 183 days per year can also qualify as residents and can be subjected to tax as well.

2. What’s The Date For Canadian Taxes?

For the majority of you out there living in Canada, the due date for the Canadian return (T1) is April 30th of every year. But at the same time, self-employed individuals get an extended deadline of 15th of June to file, however for them too, the payment should be made before April 30. Non-residents are granted an extension till June 30.

3. How To Avoid Double Taxation?

As avoiding double taxation is the real reason behind why you may go for many of the experts out there like Protax Consulting Services, we make the decision simple for you in which you can manage avoiding double taxation on your own as well.

• Foreign Earned Income Exclusion – With this exclusion you can exclude up to more than $100,000 which you have earned as an income from foreign resources.
• Tax Credit – Here the tax on remaining income is reduced based on the taxes you pay to the foreign governments.
• Foreign Housing Exclusion – Exclusion based on some amounts paid to cover household expenses due to living abroad.

4. Any Other US Tax Relief?

Normally if you forget or fail to file United States taxes the penalty is 5% per month and it goes up to 25% each year. This is a special arrangement being made by the IRS as they wave such a penalty for Americans in Canada and dual citizens filing late returns.