US tax guide for Americans in Canada

TWO COUNTRIES, ONE YEAR

Filing in Canada does not settle the US return.

US citizens and resident aliens generally report worldwide income, including income earned in Canada. This guide covers a calendar-year 2025 US federal individual return, January 1 through December 31, 2025. It does not decide your personal tax residency or whether a nonresident return applies.

How the Canadian and US periods line up
Item	Canada	United States
Period	A T4 slip reports the remuneration an employer paid to an employee during a calendar year.	The 2025 calendar-year return covers January 1 through December 31, 2025.
Currency	T4 amounts are reported in Canadian dollars.	Amounts on the US return must be in US dollars.
Treatment	Canadian rules decide Canadian income and tax treatment.	Matching periods helps organise records, but US treatment follows US rules; the two are not equated.
Deadlines	Check with the Canada Revenue Agency.	US filing, payment and account-report dates need their own check. See the deadline guide.

CANADIAN RECORDS

What each record tells the US return.

A slip, an assessment and a payment confirmation answer different questions. A Canadian slip does not establish how every item is treated in the US, so keep the underlying statements, transaction records and plan documents too.

Record	What it shows	Why it matters for the US return
T4 and payslips	Box 14 generally shows employment income before deductions; box 22 shows income tax deducted.	A starting point for wages and for the Canadian income tax behind a foreign tax credit review. Suggested (editorial): each employer’s payslips, payment dates, corrections and benefit details.
T5	Statement of investment income.	Lists the investment income to check against your account statements.
T5008	Statement of securities transactions.	Lists sales to check against your account records; see what we prepare for how sales are covered.
T4RSP and T4RIF	RRSP income and registered retirement income fund income.	Keep plan documents; registered plans need case-specific review.
Notice of Assessment or Reassessment	CRA’s calculated return amounts and any explained changes. The account summary may show a refund, an amount due or a nil balance.	A refund or balance owing is not the foreign tax credit amount. Keep the submitted return, the detailed calculation and later reassessments, and note the tax year each concerns.
Payment and refund records	When and how much you actually paid or received.	An assessment notice may still show a balance owing even if it was paid in full. Keep dated payment confirmations tied to the income and tax year.
Bank, investment and pension statements	Suggested (editorial): income, holdings, ownership and account values, balances during 2025 and at year end, sales and purchase costs, contributions and distributions.	The account and investment details behind the return and any account reports.
Residence and travel calendar	Suggested (editorial): actual dates abroad and in the United States, work locations, travel dates and residence records.	For an applicable exclusion check, which turns on a foreign tax home and residence or physical presence.

GATHER EVERYTHING

Documents checklist

The full list of records a US return needs, in one place.

Open the checklist

US RULES THAT STILL APPLY

Credit, exclusion and account reports.

These rules work alongside each other. This guide does not choose a claim for you or promise that Canadian tax eliminates the US bill.

FTC

Foreign tax credit

Qualifying foreign income taxes paid or accrued on income also subject to US tax may support a credit. Not every foreign charge qualifies, so keep the income, tax amount, period and payment evidence.

Foreign tax credit guide FEIE

Foreign earned income exclusion

Needs qualifying foreign earned income, a foreign tax home and the bona fide residence or physical presence test; living in Canada alone is not enough. Pensions are not foreign earned income, and the exclusion does not reduce self-employment tax.

Exclusion guide FINCEN 114

FBAR

A US person generally must file an FBAR when the aggregate value of foreign financial accounts (financial interest or signature authority) exceeds $10,000 at any time in the calendar year.

Compare FBAR and Form 8938 SPECIFIED FOREIGN ASSETS

Form 8938

Form 8938 has different asset and threshold rules. Filing one does not replace the other.

Form 8938 and FBAR compared

REGISTERED PLANS AND PENSIONS

RRSP, TFSA and pensions need case-specific review.

One plan’s outcome should not be applied to every Canadian account. ExpatReturn.us gives no case-specific pension or treaty determination.

Plan or holding	What the official sources say	Keep
RRSP and RRIF	Revenue Procedure 2014-55 gives specific rules for a “Canadian retirement plan”, an arrangement within Article XVIII(7) of the US-Canada treaty; its background describes RRSPs and RRIFs. It made Form 8891 obsolete as of December 31, 2014, and does not affect other reporting such as Form 8938 or the FBAR.	Actual plan terms, contributions, distributions and relevant prior US-return history.
TFSA	CRA describes TFSA investment income (interest, dividends, capital gains) as generally tax-free under Canadian rules. That Canadian treatment alone does not determine US income or reporting treatment.	Account terms, statements and holdings. This guide does not classify every TFSA as a foreign trust or promise a US exemption.
Canadian pensions	Treatment can depend on the plan, the payments, residence and the applicable treaty provisions. The interview tests employer contributions to a listed plan under treaty Article XVIII(13), including a registered pension plan that promises a set pension, within limits for 2024 and 2025. A pension paid another way, or starting before age 62, is refused by name.	Plan documents and payment records.
Funds and other foreign holdings	Some raise passive foreign investment company (PFIC) questions and possible Form 8621 reporting. Classification needs the actual investment facts.	Holding details. Form 8621 PFIC reports are prepared in the Investor plan, for 2025 returns and, on paper, 2022 to 2024 returns, with limits.

CAD TO USD

Every dollar figure traces back.

T4 amounts are in Canadian dollars; the US return must be in US dollars. For a dollar-functional-currency taxpayer, IRS guidance generally uses the exchange rate when an item is received, paid or accrued, subject to the item’s rules.

Amount	How it is converted	Keep
Income and expenses	The rate must follow the rules for the item reported.	Suggested: the CAD document, amount and date, the rate with its date and source, and the USD figure linked back to them.
Foreign taxes	Foreign taxes have their own conversion rules. For an accrued tax paid in CAD, ExpatReturn.us converts at the IRS yearly average rate. When a tax must use the rate on the day you paid it, you enter the dollar amount.	Income tax calculation, withholding and payment records.
Account values	FBAR and Form 8938 have separate valuation and conversion instructions. Do not assume a wage or tax conversion also fits account values.	Account statements and values.

WHAT EXPATRETURN.US PREPARES

Your Canadian records, entered by you.

The plans cover eligible US federal returns (2025 e-filed, 2019 to 2024 on paper): employment income, interest and ordinary dividends, with limited Form 2555 and Form 1116 preparation. Premier adds one eligible freelance business for you and one for your spouse, with depreciation and the home office; Investor adds eligible investment sales, with or without Form 1099-B, rental and royalty income, Form 8621, partnership and S corporation K-1s (2019 to 2025 returns), and limited Form 8938 preparation.

EMPLOYMENT & SAVINGS

Standard

$119per federal returnUSD

US and overseas employment income
Bank interest and ordinary dividends
Foreign income exclusion, if eligible

See the Standard plan

FREELANCE & SELF-EMPLOYED

Premier

$149per federal returnUSD

Everything in Standard
One business each for you and your spouse
Self-employment tax calculation

See the Premier plan

INVESTMENTS & RENTALS

Investor

$199per federal returnUSD

Everything in Premier
Investment sales, with or without Form 1099-B
Rental and royalty income, US or foreign

See the Investor plan

FIRST STEPS

Where to start.

Editorial suggestions, not an official standard.

1
Gather slips and statements
Collect slips and statements for every applicable income source.
2
Keep assessments and payments apart
Retain assessment details, with payment or refund evidence kept separately.
3
Keep CAD originals and conversion notes
Keep the original CAD amounts and the explanation behind each USD conversion.
4
Review plans and accounts
Review registered plans, holdings and foreign accounts before choosing a preparation route.

QUESTIONS

Common Canada questions.

Other country guides

Does filing my Canadian return settle my US return?

No. US citizens and resident aliens generally report worldwide income, including income earned in Canada, and overseas exclusions or credits are claimed through a relevant US return.

Is my CRA refund or balance owing my foreign tax credit?

No. A refund or balance owing on the CRA account summary is not the foreign tax credit amount. Start the US credit review with the income tax calculation, withholding and payment records, then apply US qualifying-tax and timing rules.

Can I use the exclusion and the credit on the same income?

Taxes on income excluded through the foreign earned income exclusion cannot also be claimed as a foreign tax credit. This guide does not choose a claim for you.

Is my TFSA tax-free in the US too?

CRA describes TFSA investment income as generally tax-free under Canadian rules, but that Canadian treatment alone does not determine US income or reporting treatment. This guide does not promise a US exemption.

Can ExpatReturn.us import my T4 or connect to CRA My Account?

No. T4, CRA assessment and Canadian investment-slip imports are unavailable, and no CRA account connection is offered. Your Canadian records help you supply the figures.

Official US and Canadian sources (17)Reviewed 22 October 2026

Official sources

Last reviewed 22 October 2026

US taxes for Americans living in Canada.