US Tax Filing for Americans Living in Canada
Americans living in Canada face one of the most intricate cross-border tax situations in the world. The US-Canada tax treaty is detailed and frequently updated, Canadian tax rates are broadly comparable to US rates, and certain popular Canadian accounts — particularly TFSAs — are not recognised as tax-advantaged under US law, creating ongoing US tax obligations on their growth. We handle both the annual US return and the complex treaty and account-reporting issues that catch many US-Canadian dual filers off guard.
Get started with your filingWho this is for
- ✓ US citizens and green card holders living and working in Canada
- ✓ Americans who moved to Canada and have both US and Canadian tax obligations
- ✓ Dual US-Canadian citizens navigating filing in both countries
- ✓ Americans with Canadian RRSPs, TFSAs, pension plans, or other registered accounts
- ✓ US citizens married to Canadian citizens or permanent residents
What this filing may involve
Every situation is different. The forms below commonly apply — your specific filing may vary.
- 1 Form 1040 — US Individual Income Tax Return
- 2 Form 1116 — Foreign Tax Credit (usually preferred; Canadian rates comparable to or higher than US rates)
- 3 Form 8891 — RRSP/RRIF deferral election (or treaty return position for 2014+ via Form 8833)
- 4 Form 8833 — Treaty-based return position disclosure
- 5 FinCEN Form 114 (FBAR) — Canadian bank, investment, and RRSP accounts
- 6 Form 8938 — FATCA reporting for specified foreign financial assets
- 7 Form 3520 / 3520-A — potential TFSA reporting if IRS treats it as a foreign trust
Documents usually needed
- 📄 T4 slips from Canadian employer(s)
- 📄 T3 and T5 investment income slips
- 📄 RRSP contribution and withdrawal statements
- 📄 TFSA account statements
- 📄 Canadian Notice of Assessment (if you filed a Canadian return)
- 📄 Prior year US tax return
- 📄 Social Security number or ITIN
How Nomadic.Tax works
AI-assisted preparation with licensed professional review — every time.
Tell us about your Canadian income, registered accounts (RRSP, TFSA), and Canadian tax filings
Upload T4s, T3s, T5s, and account statements
Our CPAs apply the US-Canada treaty and determine RRSP deferral and TFSA reporting positions
Your return is e-filed and all required information returns are filed alongside
When human review matters
- ⓘ TFSAs are not tax-advantaged under US law; their investment income is US-taxable annually — and may require Form 3520-A if treated as a foreign trust
- ⓘ The correct treatment of RRSPs for US purposes requires a treaty position — our CPAs ensure this is properly documented
- ⓘ State tax obligations may continue for former US residents depending on their domicile state
[INSERT: customer testimonial, e.g. "product manager in Vancouver, Canada, saved money and stress using Nomadic.Tax"]
- product manager, Vancouver, Canada
Relevant plans
Choose the package that best fits your situation, or view all plans.
- ✓ Everything in Standard
- ✓ Schedule C & SE for self-employment
- ✓ Multiple income sources and currencies
- ✓ Everything in Premier
- ✓ Foreign Earned Income Exclusion (Form 2555)
- ✓ Foreign Tax Credit (Form 1116)
- ✓ FBAR filing (FinCEN 114) included
- ✓ Everything in Expat
- ✓ Schedules D & E for investments and rentals
- ✓ Foreign asset reporting (Form 8938)
- ✓ FBAR filing (FinCEN 114) included
Frequently asked questions about US Tax Filing for Americans Living in Canada
Is my Canadian RRSP reported on my US tax return?
Yes. Under the US-Canada tax treaty, you can elect to defer US tax on RRSP earnings until distribution — but this requires a treaty return position (now disclosed via Form 8833 or an annual statement). The RRSP account itself must also be reported on FBAR and potentially Form 8938.
Why is my TFSA a problem for US taxes?
Canada's Tax-Free Savings Account is not recognised as tax-exempt under US tax law. All income and gains inside your TFSA are subject to current US income tax, and the IRS may treat the TFSA as a foreign trust, requiring Form 3520-A annually. This is one of the most common tax issues for US citizens in Canada.
Do I owe US tax if I already pay Canadian tax?
Typically no additional US tax is owed because Canadian provincial and federal tax rates are comparable to or higher than US federal rates. The Foreign Tax Credit offsets your US liability. However, you must still file a US return annually.
I moved from the US to Canada mid-year — how does this work?
Your US return covers your worldwide income for the full calendar year. For the period you were in Canada, the Foreign Tax Credit offsets Canadian taxes paid. The FEIE Physical Presence Test starts counting from when you left the US, so you may not qualify for FEIE in your first partial year — Foreign Tax Credit is usually better in this case.