Your return must be postmarked by June 15th.

References:

• Publication 17, Your Federal Income Tax
• Form 4868 (PDF), Application for Automatic Extension of Time to File U.S. Individual Income Tax Return

United States citizens living abroad are required to file annual U.S. income tax returns and report their worldwide income if they meet the minimum income filing requirements for their filing status and age. You must contact the Canadian Government to determine whether you must file a Canadian tax return and pay Canadian taxes. For the United States income tax return, you will have options available to you to claim a foreign tax credit or exclude some or all of your foreign earned income.

References:

• Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad
• Publication 514, Foreign Tax Credit for Individuals
• Publication 597, Information on the United States-Canada Income Tax Treaty

Benefits paid under the Canada Pension Plan (CPP), Quebec Pension Plan (QPP), and Old Age Security (OAS) program to a U.S. resident if taxable, are taxable only in the United States. According to the U.S. - Canada income tax treaty, taxation of these benefits is based exclusively on residence. U.S. citizens or green card holders who reside in Canada are not subject to U.S. tax on this income.

These Canadian benefits are treated as U.S. social security benefits for U.S. tax purposes. Thus, under section 86 of the Internal Revenue Code, the portion of the benefits that is taxable will depend on your income and filing status. If your modified adjusted gross income is above certain limits, a maximum of 85% of your benefits will be subject to U.S. tax. Refer to Tax Topic 423 for information about determining the taxable amount of your benefits. Any benefit under the social security legislation of Canada that would not be subject to Canadian tax if paid to a resident of Canada is not subject to U.S. tax.

Canadian benefits that are treated as U.S. social security benefits are reported on Form 1040 (PDF), U.S. Individual Income Tax Return or Form 1040A (PDF).

References:

• Publication 519, U.S. Tax Guide for Aliens
• Publication 597, Information on the United States-Canada Income Tax Treaty
• Publication 915, Social Security and Equivalent Railroad Retirement Benefits
• Tax Topic 423, Social Security and Equivalent Railroad Retirement Benefits

Earned income is pay for personal services performed, such as wages, salaries, or professional fees. Foreign earned income is income you receive for services you perform in a foreign country during a period when your tax home is in a foreign country and during which time you meet either the bona fide residence test or the physical presence test. It does not matter whether earned income is paid by a U.S. employer or a foreign employer. Foreign earned income does not include the following amounts.

1. The previously excluded value of meals and lodging furnished for the convenience of your employer.
2. Pension or annuity payments including social security benefits.
3. Payments by the U.S. Government, or any U.S. government agency or instrumentality, to its employees.
4. Amounts included in your income because of your employer's contributions to a nonexempt employee trust or to a nonqualifying annuity contract.
5. Recaptured unallowable moving expenses
6. Payments received after the end of the tax year following the tax year in which you performed the services that earned the income.

References:

• Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad
• Publication 514, Foreign Tax Credit for Individuals
• Form 2555 (PDF), Foreign Earned Income
• Form 2555EZ (PDF), Foreign Earned Income Exclusion
• Form 1116 (PDF), Foreign Tax Credit
• Tax Topic 853, Foreign Earned Income Exclusion - General

To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must have foreign earned income, your tax home must be in a foreign country, and you must be one of the following:

• A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year,
• A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty with a nondiscrimination article in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or
• A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

U.S. tax law does not specifically require a foreign resident visa or work visa for this purpose, but you should comply with the other country's laws.

References:

• Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad
• Publication 514, Foreign Tax Credit for Individuals
• Form 2555 (PDF), Foreign Earned Income
• Form 2555EZ (PDF), Foreign Earned Income Exclusion
• Form 1116 (PDF), Foreign Tax Credit
• Tax Topic 853, Foreign Earned Income Exclusion - General

Use Form SS-5-FS which may be obtained from the Social Security Administration.

References:

• Social Security Administration

Each foreign person who does not have and cannot obtain a social security number must use an IRS Individual Taxpayer Identification Number (ITIN) on any U.S. tax return or refund claim filed. For additional information on ITINs click on Individual Taxpayer Identification Number.

References:

• Publication 1915 (PDF), Understanding Your IRS Individual Taxpayer Identification Number
• Publication 519, U.S. Tax Guide for Aliens
• Form W-7 (PDF), Application for IRS Individual Taxpayer Identification Number
• Tax Topic 851, Resident and Non-Resident Aliens
• Tax Topic 852, Dual Status Aliens

A U.S. citizen or resident alien is generally subject to U.S. tax on total worldwide income. However, if you are a United States citizen or a resident alien who lives and works abroad, you may qualify to exclude all or part of your foreign earned income. For specific information, refer to Tax Topic 853, Foreign Earned Income Exclusion - General.

If you would like more information on who qualifies for the exclusion, refer to Tax Topic 854, Foreign Earned Income Exclusion - Who Qualifies. For more information on what type of income qualifies for the exclusion, refer to Tax Topic 855, Foreign Earned Income Exclusion - What Qualifies. You may also wish to refer to chapter 4 Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, for a detailed discussion.

U.S. citizens are taxed on their worldwide income. Some taxpayers may qualify for the foreign earned income exclusion, foreign housing exclusion, or foreign housing deduction, if their tax home is in a foreign country and they are either a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months. If the taxpayer is temporarily away from his or her tax home in the United States on business (less than a year), he or she may be able to claim a foreign tax credit (if required to pay qualifying foreign tax on income earned in a foreign country), but would not qualify for the foreign earned income exclusion. The taxpayer may also qualify to deduct away from home expenses (for travel, meals, and lodging), but not against excluded income.

References:

• Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad
• Publication 514, Foreign Tax Credit for Individuals
• Publication 463, Travel, Entertainment, Gift and Car Expenses
• Form 2555 (PDF), Foreign Earned Income
• Form 2555EZ (PDF), Foreign Earned Income Exclusion
• Form 1116 (PDF), Foreign Tax Credit
• Tax Topic 514, Employee Business Expenses

The foreign tax credit is intended to relieve U.S. taxpayers of the double tax burden when their foreign source income is taxed by both the United States and the foreign country from which the income is derived.

Generally, only income taxes paid or accrued to a foreign country or a U.S. possession qualify for the foreign tax credit. You can choose to take the amount of any qualified foreign taxes paid or accrued during the year as a foreign tax credit or as an itemized deduction.

To choose the foreign tax credit you must generally complete Form 1116 (PDF), Foreign Tax Credit, and attach it to your Form 1040 (PDF). You may claim credit without attaching Form 1116 if all of your foreign source income is passive income (such as interest and dividends) reported to you on qualified payee statements and the total amount of qualifying foreign taxes you paid or accrued is not more than $300 ($600 in the case of a joint return) and is also reported to you on these qualified payee statements.

You may not take either a credit or a deduction for taxes paid or accrued on income you exclude under the foreign earned income exclusion or the foreign housing exclusion. There is no double taxation in this situation because the income is not subject to U.S. tax. To choose the deduction, you must itemize deductions on Form 1040, Schedule A (PDF).

References:

• Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad
• Publication 514, Foreign Tax Credit for Individuals
• Form 1116 (PDF), Foreign Tax Credit
• Tax Topic 856, Foreign Tax Credit

Publication 901, U.S. Tax Treaties, has information regarding United States tax treaties.

You can also locate the complete text of most current treaties at Income Tax Treaties or use our search engine with keywords "income tax treaties."

References:

• Publication 901, U.S. Tax Treaties