Filing returns in Canada and the US

Hi David,

I am a dual citizen Canada/USA. I have earned the majority of my income in Canada and am not eligible for a pension in the USA as I was self employed for the few years that I earned minimal income there. I have filed income tax returns in both countries for a number of years but have never owed anything to the US, do I need to keep filing?



david ingram replies:

I hate to have to tell you that the answer is a simple yes. as long as you are a US citizen, you have to file a US return.  However, you can NOT use form 2555 to exempt income as you have done to exempt up to $82,400 of earnings in the past.   You must now use form 1116 to calculate the foreign tax credit.