US and Canada income

[Howco]

Taxpayer is US citizen with 'permanent residence card' in Canada. Spouse is US/Canada dual citizen.

Taxpayers lived and worked in US Jan. - Sept. 2013. Taxpayers both have employment in Canada and moved there Oct. 2013. The intent is for this to be a permanent move.

I spoke with a Canadian Chartered Accountant who is also a US CPA. He suggested simply reporting the US income on the US return, and the Canadian income on the CA return. No duplication of income. No foreign earned income exclusions or foreign tax credits on US tax return.

Does this seem appropriate? I thought US citizens had to claim worldwide income. Is there some tax treaty with Canada or other IRS regulation which permits the reporting as explained above?

[Burke]

Does this seem appropriate? I thought US citizens had to claim worldwide income. Is there some tax treaty with Canada or other IRS regulation which permits the reporting as explained above?

1. They do.
2. There is an IRS Pub 597 which may address this situation.

[Uncle]

Let me try.

Taxpayer is US citizen with 'permanent residence card' in Canada. Spouse is US/Canada dual citizen.

Taxpayers lived and worked in US Jan. - Sept. 2013. Taxpayers both have employment in Canada and moved there Oct. 2013. The intent is for this to be a permanent move.

I spoke with a Canadian Chartered Accountant who is also a US CPA. He suggested simply reporting the US income on the US return, and the Canadian income on the CA return. No duplication of income. No foreign earned income exclusions or foreign tax credits on US tax return.

Does this seem appropriate? I thought US citizens had to claim worldwide income. Is there some tax treaty with Canada or other IRS regulation which permits the reporting as explained above?

TP files 1040 reporting world wide income. TP may either exclude foreign earned income or claim a deduction for foreign taxes, or both. TP may extend filing to qualify for exclusion. TP files T-1 and reports all income earned while a resident of Canada. Period of residency may or may not include only time living in Canada, more information is needed.