CPA firm specializing in US Taxes, Canadian Taxes and International Taxes. Our offices are located in Wilmington, Delaware and Toronto, Canada. Our services include but are not limited to international tax consultations regarding individuals or entities operating in more than one country,
US Citizens are required to file a federal income tax return whether they are living inside or outside the United States. The deadline to file an income tax return is June 15 if the Taxpayer is living outside the United States.
Canadian Corporations Providing Services in the United States must file Foreign Corporate Tax Return or Form 1120F. Form 1120F is due on June 15 and must be prepared based on calendar year end.
Canadian Corporations are normally in a good position to save thousands of dollars in social security taxes if the entire tax situation is handled correctly.
Nonresidents who own rental properties in the United States must file an income tax return. For these types of returns, due date to file the return is June 15.
Nonresidents who wish to file an income tax return must obtain Individual Taxpayer Identification Number (ITIN). For more information, please call us.
Canada-US Income Tax Convention have been signed desiring to avoid double taxation.
In the case of Canada, if you pay income tax to the United States for the income earned in that country, you can claim foreign tax credits against that income in Canada. Foreign tax credits include federal income tax, state income tax, social security taxes etc.
In the case of the United States, if you pay income tax to Canada with respect to the income earned in that country, you can claim foreign tax credits or foreign earned income exclusion or a combination thereof. Although foreign tax credits and foreign earned income exclusion are available at the federal level, this may not be true at the state level. Some states such as California and New Jersey may not honor tax treaties between Canada and the United States i.e. the income tax paid to the province of Canada may not be available for foreign tax credits when calculating tax liability for these states. Accordingly, some double taxation may happen at state level.