Filing resident taxes in both US and Canada (1040 + T1)

[willowhp]

I will be filing taxes in Canada for the first time. I have H1b in US and PR in Canada and maintain permanent homes in both US and Canada. I am a tax resident of both countries for 2024, but all my income is US sourced (W2, rental income, stock). All US sourced income was earned on US soil.

I was thinking of doing the following -

1. File 1040 in US (as a resident), married filing jointly, claim child tax credit - apply for transcript
2. File T1 in Canada separately for me and spouse - claim FTC for taxes already paid in US, pay difference in taxes to CRA - send via mail including IRS and state transcripts

My question is - if I have filed resident tax in US, can I still claim FTC on the taxes paid in Canada? OR does the treaty force dual residents to choose to be a tax resident of just one country? I have noticed many in this forum have used 1040NR and filed in US as non-residents, hoping to hear from someone who has filed resident taxes in both places without issues - please share your experiences?

 

[hauptbahnhof]

In a similar boat, did you ever figure this out? Do both you and your spouse have to each file Canadian tax return as a tax resident?

 

[willowhp]

In a similar boat, did you ever figure this out? Do both you and your spouse have to each file Canadian tax return as a tax resident?

Yes, spouse and I will file separately as Canadian tax residents. We filed US as residents already, now waiting to file with CRA (within next 3 weeks).

Will definitely share my experience here once all the expected CRA assessments are completed and this tax chapter is closed.

 

[hauptbahnhof]

Yes, spouse and I will file separately as Canadian tax residents. We filed US as residents already, now waiting to file with CRA (within next 3 weeks).

Will definitely share my experience here once all the expected CRA assessments are completed and this tax chapter is closed.

Great thanks, would love to hear about your experience and the tax credit claiming process!