US Citizen in Canada
US citizenship means a US filing obligation no matter where you live.
The situation
Where this gets complicated
US citizens and green card holders living in Canada must file a US return every year regardless of residency, plus report Canadian financial accounts through FBAR and FATCA, both of which carry steep penalties when missed.
US citizen or green card holder who has lived in Canada for years
Canadian bank accounts, RRSPs, or TFSAs never reported to the IRS
Never filed a US return since moving, or fell behind after learning the requirement existed
Married to a non-US spouse and unsure how to file jointly or separately
Forms that typically apply
- 1040
- Your annual US return, required regardless of where you live.
- FBAR (FinCEN 114)
- Reports foreign accounts, including RRSPs and TFSAs, once combined balances cross the threshold.
- Form 8938 (FATCA)
- Additional foreign asset reporting attached to your 1040 above certain thresholds.
- Streamlined Filing
- An IRS program for catching up on missed returns without the standard penalties, for those who qualify.
Related guides
Questions
Common questions
I did not know I had to file. What now?
This is common. The IRS Streamlined Filing Compliance Procedures are designed for taxpayers whose failure to file was non-willful. If you qualify, they can bring several years up to date with reduced or no penalties, depending on the version that applies. We review eligibility first.
Is my TFSA a problem for US taxes?
Often, yes. The US does not recognize the TFSA's tax-free status, so its income is generally taxable on your US return and reportable on FBAR and FATCA.