US Tax Filing and Cross Border Returns

Navigate US tax filing with Confidence

US Tax Accountant in Canada

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TMP specializes in cross-border taxation and treaty based filings.

Our team aims to support clients in navigating Canada Revenue Agency (CRA) and Internal Revenue Service (IRS) regulations. With our specialized expertise and unwavering commitment to excellence, we stand as your trusted partner in navigating the complex landscape of US tax compliance while living abroad.

Living abroad brings a host of opportunities and experiences, but it also comes with the responsibility of staying compliant with tax regulations. Proper tax compliance is not just a legal obligation; it’s a crucial step in safeguarding your financial well-being.

Whether you’re a Canadian resident working in the US or a US citizen residing in Canada, understanding and meeting your tax obligations is paramount.
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Who has to file US tax return?

U.S. Citizens

Lawful permanent residents (green card holders) are considered U.S. tax residents and are required to report their worldwide income to the IRS.

Alter Ego Trust

Lawful permanent residents (green card holders) are considered U.S. tax residents and are required to report their worldwide income to the IRS.

Substantial Presence Test

The CRA may seize assets or place liens on property as collateral to secure debt repayment. A well-crafted asset protection plan is essential to prevent permanent loss of your holdings.

Non-Resident Aliens with U.S. Income

Under specific conditions, the CRA offers interest and penalty relief for late, missing, and incorrect filings. Qualification for these relief options may hinge on meeting key criteria.

U.S. Source Income

This program empowers taxpayers to voluntarily disclose, correct, or file information previously unreported to the CRA, potentially mitigating penalties and avoiding litigation.

Tax Treaties

At times, the CRA may audit your payroll, GST/HST, or income tax returns. Having a knowledgeable expert well-versed in the Income Tax Act by your side is crucial.

USA Personal Tax services

  • Federal personal income tax returns for U.S. citizens and residents (Form 1040)
  • Federal personal income tax returns for non-residents (Form 1040NR)
  • State personal income tax returns
  • Federal gift & estate tax returns (Form 709, Form 706)
  • Federal estate income tax returns (Form 1041)
  • USA Personal Tax services

  • Federal corporate and partnership income tax returns (Form 1120, Form 1120S, Form 1065)
  • Federal corporate tax returns for foreign corporations (Form 1120-F)
  • Federal informational returns for remuneration and other payments made(W-2, 1099-MISC, 1099-DIV)
  • State and local income, sales and other tax reporting)
  • Business entity choice analysis (sole proprietorship, partnership, C Corporation, S Corporation, LLC)
  • Specialty US returns and filings

  • Federal US-Canada treaty analysis (U.S. permanent establishment analysis for Canadian companies)
  • State and local nexus analysis (U.S. nexus threshold analysis for Canadian companies)
  • Report of foreign bank and financial accounts for U.S. citizens and residents (FBAR)
  • U.S. tax residency analysis for expats (resident alien vs non-resident alien)
  • Tax consequence analysis of holding/disposing property in the US as a non-resident (FIRPTA)
  • Individual US-Canada treaty analysis
  • Key considerations for Canadian Residents and US expats

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    a. Tax Residency and Treaty Rules

    Understanding your tax residency is vital. Dual residency challenges can arise for Canadians living in the U.S. The Treaty Tie-Breaker Rules in the Canada-U.S. Tax Treaty provide guidance in resolving such situations.

    b. Foreign Earned Income Exclusion (FEIE

    Expatriates can benefit from FEIE, allowing the exclusion of foreign-earned income from U.S. taxation. Eligibility and proper documentation are crucial for maximizing this tax advantage.

    c. Reporting Foreign Assets

    Canadian residents with U.S. financial ties must meet reporting obligations, including FBAR and Form 8938. Failure to comply may lead to penalties.

    d. Social Security and Pensions

    Navigating social security and pensions across borders is critical. Coordination between Canadian and U.S. pension plans is essential for optimizing benefits and avoiding unnecessary tax burdens.

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    Why Us

    Financial Education

    We prioritize educating our clients, equipping them with the knowledge to make sound financial decisions for their future success.

    Seasoned Experts

    Our experienced team offers deep expertise, ensuring reliable and comprehensive solutions for all accounting and tax needs.​

    Personalized Solutions

    Tailoring our services to each client's unique circumstances, we deliver customized solutions that address specific goals and challenges effectively.​

    Modern Approach

    Embracing cutting-edge technologies and innovative methods, we provide efficient and forward-thinking accounting and tax services to meet the demands of today's business landscape.​

    FAQ

    Yes, the personal tax filing requirements for U.S. citizens and lawful permanent residents living abroad are the same as those living within the United States. Therefore, overseas US residents/citizens must file if their total income exceeds the standard deduction. 

    As a Canadian national working temporarily in the USA, you may need to file a U.S. tax return. The appropriate form depends on your specific circumstances:

    • Form 1040: If you meet the Substantial Presence Test, you are considered a U.S. resident for tax purposes, you would generally file Form 1040 to report your worldwide income
    • Form 1040NR: If you do not meet the Substantial Presence Test, you are considered to be a non-resident a

    The penalties for not filing the Report of Foreign Bank and Financial Accounts (FBAR), FinCEN Form 114, can be significant. The penalties are as follows:

    • Civil penalties:
      • Non-willful violation: up to $10,000 per violation
      • Willful violation: the greater of $100,000 or 50% of the balance in the account at the time of the violation
    • Criminal penalties:
      • Willful failure to file an FBAR or willfully filing a false FBAR can result in criminal penalties, including fines and imprisonment.

    As a Canadian national who moved to the USA, you will likely need to file a U.S. tax return for the year of your move. Here are some general steps you may want to consider:

    • Determine Tax Residency: Establish whether you meet the Substantial Presence Test for U.S. tax residency.
    • Choose Correct Form: Use Form 1040 for U.S. residents or Form 1040NR if considered a nonresident.
    • If choosing Form 1040, be sure to attach a dual-status statement disclosing income earned for the period you are a non-resident alien for US tax purposes

    As a U.S. green card holder residing and working abroad, you need to report your global income on Form 1040. There are provisions like the foreign earned income exclusion and foreign tax credits to manage potential double taxation.

    US citizens must file personal tax returns, since their worldwide income needs to be reported. The only way to be exempt from reporting foreign income is to renounce your US citizenship. However, if you do, please be aware of the expatriation tax that can apply to you if you are a “covered expatriate”.

    As a Canadian resident working temporarily in the USA, you must report your U.S. wages to the Canada Revenue Agency. However, you are entitled to a foreign tax credit and can claim social security taxes, medicare premiums and federal and state income taxes imposed on your US wages as foreign taxes paid.

    Yes, if you are also a resident for US tax purposes. RRSP and TFSA are reportable accounts on the FBAR (Report of Foreign Bank and Financial Accounts) when you meet the US$10,000 reporting threshold. Contributions to RRSP are not deductible for US tax purposes. Earnings in RRSP are still exempt. TFSA is considered a regular bank account therefore earnings within are taxable for US purposes.

    The gift tax in the U.S. is typically paid by the person making the gift (the donor). There’s an annual exclusion for each donee who you transfer gifts to. The annual exclusion is indexed for inflation ($17,000 for 2023). Certain gifts, like transfers to spouses or qualified charities and transfers to pay for tuition and medical expenses of someone else, are exempt.

    U.S. residents receiving gifts from non-resident aliens must report the receipt of foreign gifts if the total gifts received from that particular non-resident has exceeded $100,000 for the year. File Form 3520 separately from your personal income tax return by the due date (April 15) or extended due date (Oct 15). Consulting with a tax professional is recommended if you think that you are subject to Form 3520

    The federal estate tax return (Form 706) and the federal estate income tax return (Form 1041) serve different purposes and are filed under different circumstances:

    • Form 706 (Federal Estate Tax Return):
      • Purpose: Reports estate tax liability after an individual’s death
      • Filing Requirement: Mandatory if the estate value exceeds a certain threshold
      • Contents: Details assets, liabilities, and deductions for calculating estate tax
    • Form 1041 (U.S. Income Tax Return for Estates and Trusts):
      • Purpose: Reports income, deductions, and distributions of an estate or trust.
      • Filing Requirement: Required for estates or trusts with gross income of $600 or more.
      • Contents: Includes information on income, deductions, and beneficiary distributions.

    Due to the US-Canada tax convention, a Canadian corporation needs to file federal income taxes only if they have a permanent establishment (PE) in the US. A PE generally means an office or employee in the US. If they do, they need to file Form 1120-F to report the earnings attributable to the US PE.

    A Canadian corporation with U.S. sales may need to file state-level taxes in states where it has a substantial presence (nexus). This includes state income taxes on income attributable to the state and potential obligations for collecting and remitting state sales taxes. Depending on each state, there could be physical nexus (physical presence in the state via office lease or employee hire) and economic nexus (amount of sales in the state) rules applicable to the Canadian corporation.

    Yes, as a Canadian resident who owns a U.S. Limited Liability Company (LLC), you generally need to report the LLC’s earnings to the Internal Revenue Service (IRS) in the United States. The LLC is treated as a flow-through entity by default, which means that the owner reports the earnings made by the LLC personally (on Form 1040NR). However, the LLC can elect to be taxed as a corporation. In that case, the LLC files taxes itself to report its earnings (on Form 1120).

    Revenue Canada treats a U.S. LLC as a foreign corporation, a separate existence from their owners. Depending on the ownership structure and the amount of activity in the LLC, the Canadian owner may have to file Form T1134 in respect to the foreign corporation. Please refer to the T1134 info on our website for further details.

    How much will it cost for TMP to file my US Taxes?

    Basic

    (for domestic or expat US residents/citizens) 1-3 income slips (w-2, 1099-DIV, 1099-INT) foreign income exclusion, FBAR (1-2 foreign financial accounts).

    $500

    Expert

    1-5 income slips, FBAR: (1-3 foreign financial accounts), foreign income reporting, dual-status return.

    $900

    Premium

    1-10 income slips, sole-proprietorship/LLC, rental income, sale of property, FBAR, Form 8938, foreign income reporting, income from multiple states

    $1,350

    Custom

    Please fill in this questionnaire and we’ll get back to you with a quote.

    $1,500 +HST

    Next Steps

    Step 1

    Please fill in this questionnaire

    Step 2

    Schedule a consultation with one of our CPAs to receive a final quote and a checklist of the required data

    Step 3

    Upload requested data onto cloud folder shared

    Let’s collaborate!

    Have a question, an idea, or just want to learn more about Triple M Professional Corp.? We’re all ears. Fill out the form or Email us and we’ll connect with you soon.

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    Markham Office
    905-237-6424
    675 Cochrane Dr East Tower 6th Floor, Markham, ON, L3R 0B6
    Toronto Bay Street Office
    416-333-1116
    401 Bay Street, 16th Floor Toronto, ON, M5H 2Y4
    San Francisco Office
    415-366-5667
    590 California Street 16th Floor, San Francisco, CA 94104
    New York Office
    212-651-9101
    555 Madison Ave 5th Floor Manhattan,
    NY 10022
    Toronto King Street West Office
    416-333-1116
    100 King Street West, Suite 5600, Toronto, ON, M5X 1C9