US Tax Services for US Citizens Living in Canada
Key US filing deadlines for US citizens in Canada:
- US tax return (Form 1040): June 15, October 15 with extension
- FBAR report (FinCEN 114): June 30, no extensions available
- Streamlined Procedure catch-up: 3 years of returns, 6 years of FBARs
Your US Tax Filing Obligation as a US Citizen in Canada
Many U.S. citizens live in Canada for many years and have been filing their Canadian income tax returns unaware that they also, as U.S. citizens, have to file annual U.S. tax returns by June 15th (October 15th under extension).
FBAR Reporting Requirements for Canadian Accounts
In addition, most of these U.S. citizens have bank accounts, RRSPs, TFSA and other investment accounts in Canada that aggregate to $10,000 USD during the year, which must be reported annually by April 15th (no extensions) to the Department of Treasury on an FBAR report.
Up to this point, there have been large penalties for failure to file, particularly for failure to file the FBAR reports.
The IRS Streamlined Procedure: Catching Up Without Penalties
Good news has been received from the IRS, that we encourage U.S. citizens to take advantage of, and catch up on, their past filings. Under the IRS Streamlined procedure for U.S. citizens and Green card holders living outside the United States, taxpayers can come into U.S. tax compliance. Basically, the taxpayer is required to catch up with their past 3 years of all U.S.tax return filings (Form 1040, 3520, etc.) and 6 years of FBAR filings along with Form 14653: "Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures", and pay any taxes owing, if any. If done correctly, there will be no additional failure to file FBAR report penalties. This procedure should be exercised as soon as the U.S. citizen or Green card holder becomes aware of their annual U.S. tax filing obligations.
Why Most Clients Owe No US Tax
Our experience shows that most U.S. citizens have made more than enough Canadian federal and provincial combined taxes, that they owe no U.S. taxes.
We welcome you to call us at 716-694-3500 (NY) or 416-766-3941 (Toronto) or email us, so that we can assist you in being tax compliant and catch up on your past filings with the IRS and have no worries.
If you also own property in Canada, see our page on US owners of Canadian property.
Frequently Asked Questions
Do US citizens living in Canada have to file US tax returns?
Yes. US citizens and Green card holders must file annual US tax returns regardless of where they live, with a due date of June 15 (October 15 under extension).
What is the IRS Streamlined Procedure?
It is an IRS program that allows US citizens living outside the United States to catch up on past tax filings by submitting the last 3 years of US tax returns, 6 years of FBAR reports, and Form 14653. If filed correctly, failure-to-file FBAR penalties are avoided.
What is an FBAR and who has to file one?
An FBAR (FinCEN Form 114) is required for any US person whose foreign bank, RRSP, TFSA, or investment accounts aggregate to more than $10,000 USD at any point in the year. It is filed with the Department of Treasury by June 30, with no extensions.
Will I owe US tax if I already pay Canadian tax?
In most cases, no. Combined Canadian federal and provincial taxes are typically enough to offset any US tax owing through foreign tax credits.
Contact Marlies Hendricks - Your US & Canada Tax Accountant
Ready to get started? Let the Certified Public Accountants working with Marlies Hendricks assist you with your financial needs. We look forward to speaking with you soon.
