Question

I'm a U.S citizen working/living in Canada. I didn't work/receive any US income. I got a letter from IRS for "interest income" ($215), do I include this as foreign income

Forum|Forum|1 year ago
February 23, 2025
1 reply
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The letter I received from the IRS is form 1099-INT. I am not sure why I received this letter, but it says "Total interest paid or credited: $215.75"

P

pk12_2

@melodylong-ml , is it possible that you got that interest payment from the IRS because of delayed refund or adjustment etc. ? If that is the case then this is US sourced income and recognized/reported on your US filing for the year in which you received the interest amount. If you have to include this on your Canadian tax filing , and Canada taxes this interest then you may have to file form 1116 to claim FTC with income being resourced by treaty. All this depends on exact facts and circumstances.

So please tell more on what this is --yes ?

M

melodylong-mlAuthor

This is the letter I received. I'm hoping I do not have to include it on my Canada taxes as then I won't have to claim any foreign income.

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pk12_2

@melodylong-ml , you have to recognize this income for US purposes. I need to refresh my memory on US-Canada Tax treaty ( if there is a carve out for govt. payments like it is for Social Security ). Give me a couple of hours and I will get back.

pk