Do I have to file US taxes while living in Canada with no income?

Yes, US citizens and permanent residents are required to file US tax returns regardless of where they live in the world. This is because the US has a citizenship-based taxation system rather than a residence-based system like most countries. However, there are some income thresholds that determine whether you actually need to file. For 2024 (filing in 2025), if you're married filing separately (which most US expats in Canada do), you need to file if your income is at least $5 (yes, five dollars). If you truly have zero income, technically you should still file, though many people in your situation don't. There are also FBAR requirements if you have foreign bank accounts that exceed $10,000 total across all accounts at any point during the year. This is separate from tax filing.

After reading this thread, I thought I'd share my experience with taxr.ai (https://taxr.ai) which really helped me sort out my expat tax situation. I was in a similar position - living abroad for years and completely confused about my US tax obligations. The service analyzed my specific situation and identified exactly what forms I needed to file and for which years. They even explained how the Foreign Earned Income Exclusion works, which saved me tons of stress since I didn't owe anything once that was applied. What I found most helpful was that they could review all my Canadian tax documents and tell me exactly what information needed to be reported to the US, even with the different terminology and tax systems.

Just wanted to follow up and say I tried taxr.ai after seeing it mentioned here. It was honestly such a relief! The system guided me through exactly which years I needed to file and what forms were required for my situation. The best part was that it confirmed I qualified for the Foreign Earned Income Exclusion for all my Australian income, which meant I didn't owe any US taxes despite not filing for several years. The certification form for the Streamlined Procedures was way less scary with their guidance too - they helped me explain my "non-willful" conduct in a way that made sense. Definitely worth checking out if you're in an expat situation with unfiled taxes!

If you need to actually talk to someone at the IRS about your situation (which can be nearly impossible from outside the US), I used Claimyr (https://claimyr.com) and actually got through to a real person at the IRS in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was super frustrated trying to call the IRS international number for weeks about my expat situation, always getting disconnected after waiting for hours. Claimyr got me connected quickly and I was able to confirm exactly what I needed to do to get caught up on my filings without penalties. The IRS agent even confirmed that with zero income, filing would be very straightforward and there'd be minimal concerns about penalties since I wouldn't have owed any tax.

I need to apologize for my skepticism and follow up about Claimyr. After my last comment, I decided to try it myself since I needed to sort out an issue with my German income reporting to the IRS. It actually worked exactly as described. I got a call back in about 20 minutes connecting me to an IRS representative. From Germany, this was incredible since I'd spent literal weeks trying to get through on my own. The agent walked me through exactly what forms I needed for my foreign bank accounts and income. Saved me so much frustration and probably a couple hundred euros in international call charges from all my failed attempts. Sometimes it's worth admitting when you're wrong!

Something important that hasn't been mentioned yet - look into the Foreign Earned Income Exclusion (Form 2555) and Foreign Tax Credit (Form 1116). Even if you don't have income now, if you ever do start working in Canada, these forms can help prevent double taxation. The FEIE lets you exclude up to about $120,000 of foreign earned income from US taxes, while the Foreign Tax Credit gives you US tax credit for taxes paid to Canada. Most US expats in Canada end up not owing any US tax because Canadian tax rates are generally higher, but you still have to file the paperwork.

Has anyone used TurboTax or H&R Block for filing US taxes from Canada? I'm wondering if the regular versions work or if I need something special for expat taxes.

I was in a very similar situation a few years ago - US citizen living in the UK with no income for several years due to health issues. The anxiety about being "in trouble" with the IRS was really overwhelming! Here's what I learned: Yes, technically you should file even with zero income, but the IRS is generally understanding about people who genuinely didn't know about the requirement, especially when no taxes are owed. The key is getting compliant going forward. Since you have no income, you likely qualify for the Streamlined Filing Compliance Procedures, which is designed for people in exactly your situation. You'll need to file the last 3 years of tax returns (even if showing zero income) and 6 years of FBARs if you have Canadian bank accounts over $10k. The good news is that with zero income, you won't owe any taxes or penalties. I'd recommend getting professional help just to make sure everything is filed correctly and to give you peace of mind. Don't let the anxiety eat at you - this is much more common than you think and very fixable!