American Citizens living in Canda?

[giogis245]

Do they need to file a US return even though they do not have any US income? 

[Margaret CPA in OH]

 I think this may be just what you need: https://www.webcaster4.com/Webcast/Page/1148/34796

Tax Obligations of U.S. Individuals Living and Working Abroad.   A key phrase is 'worldwide income'.

This webinar will cover the following:  2 hours free CPE!
 Specify the U.S. income tax
obligations of U.S. citizens and
resident aliens abroad.
 List the requirements for claiming
the foreign earned income
exclusion.
 Summarize the U.S. employment
tax obligations of U.S. citizens and
resident aliens abroad.
 Plus a live Q & A

[Catherine]

On 5/19/2020 at 7:11 PM, giogis245 said:

Do they need to file a US return even though they do not have any US income? 

Yes.  US citizens owe tax and a tax return on WORLDWIDE income.  You can exclude income from taxation (but not reporting on a return), or take a credit for tax paid to another jurisdiction, or even sometimes as a deduction on Sch A.  Which works best depends on what they qualify for, how much money is involved, and other factors - but no double dipping!  The webinar Margaret mentioned may be a big help.  You can also read the instructions for Form 2555 (foreign earned income exclusion), and/or Form 1116 (foreign tax credit) to see if those help you.