Question on taxes on US income for a Canadian resident?
I tried to read the treaty and as a mere engineer that designs complex electronic systems and I cannot figure it out.
I am a Canadian citizen, residing in Canada but I lived in the USA (legally) from 2001 to 2010 and have US income from investments and now get a partial social security benefit. As well I have an IRA and will have to take minimum required distributions starting in 2022. I need to know the correct way to deal with my US income for tax purposes.
I have no intention to avoid taxes. Taxes are the price of civilization. I am also familiar with the official aank Of Canada exchange rate for each year for tax purposes.
Here are the three ways I have deduced.
1. File a US 1040NR to the US government and pay US taxes on US income and say nothing to the Canadian tax people.
2. Declare the entire US income on my Canadian tax return and file nothing in the USA as I am resident in Canada.
3. File a US 1040NR and pay the US taxes AND declare the income on my Canadian tax return and pay Canadian taxes on it, deducting the taxes paid to the US government as a tax credit.
I have seen things it the treaty that imply all of these in one place or another but nothing that exactly describes my situation.
I can be emailed through Yahoo Answers if more information is needed.
Any help would be appreciated.