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Question
I only lived in the US during 2022, but I had a small amount of interest income from Canada. Do I need to include form 8833 in my tax return? Explain it to me like I'm 11.
AI accountant’s answer:
Sure! Since you lived in the US during 2022, you need to report your worldwide income on your US tax return. This includes the small amount of interest income you got from Canada. You don't need to use Form 8833, though. Form 8833 is for disclosing positions taken under a tax treaty. Instead, you simply report the interest income on your tax return, along with any other income you earned during the year. Don't worry, you'll only be taxed once on that income because the US and Canada have a tax treaty in place to avoid double taxation. If you have paid any taxes to Canada on that interest income, you'll be able to claim a foreign tax credit on your US tax return, which helps to prevent being taxed twice on the same income.
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Isaiah McCoy, CPA
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