I just finished a temporary work permit at the university of Toronto and moved back to the US in August 2018. I am aware that I can claim a tax credit to avoid getting taxed twice, but I'm unclear on the logistics. Both the US and Canadian tax returns ask me to state how much I paid in taxes in the other country in order to establish how much I need to pay. Which should I file first?
It seems like I need to file one, I guess Canadian taxes since I spent more of the year there, but then I will pay taxes on the whole year and end up paying basically no federal taxes in the US, despite the fact that 4 months of my income was earned in the US.
Am I really supposed to just file one first, and it doesn't matter that I didn't earn all my income in that country?
And does anyone have any pointers on whether I should be looking into the foreign earned income exemption rather than the foreign tax credit?
Thanks so much for any guidance!
It seems like I need to file one, I guess Canadian taxes since I spent more of the year there, but then I will pay taxes on the whole year and end up paying basically no federal taxes in the US, despite the fact that 4 months of my income was earned in the US.
Am I really supposed to just file one first, and it doesn't matter that I didn't earn all my income in that country?
And does anyone have any pointers on whether I should be looking into the foreign earned income exemption rather than the foreign tax credit?
Thanks so much for any guidance!