Form 1040 – Implications for US Citizens

If you are a US citizen, you are required to file a US income tax return, regardless of the fact that you may be living outside of the US.

Many Canadian residents are US citizens, and don’t even know it. If one of your parents was a US citizen, then you also may be a US citizen, regardless if you have ever visited the US.

As a US citizen, you must file form 1040, reporting worldwide income to the US. If you are a resident of Canada, you generally will not owe any US tax, because on your US tax return you are permitted:

1. A foreign earned income exclusion of US$ 107,600 (2020 tax year) and/or

2. The claiming of foreign tax credits. Such tax credits are given to persons to avoid a double taxation situation. Since Canadian tax rates are generally higher than US rates, these credits will normally eliminate the US tax.

If you would like our firm to assist you with such filing, on your behalf, please contact us and ask us for a tax organizer. The organizer will assist you in compiling information we need to prepare your tax return. Please remember that there are penalties for persons who fail to file a US return. In certain situations or scenarios, regardless of whether US tax is actually owing, penalties may be severe where the tax return and required information returns are not timely-filed.


North American Tax Services - Attention: Joseph Soussan

2510 Yonge Street, Suite 322A
Toronto, Ontario, M4P 2H7
Tel: 416-489-4829


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