Tax advantages for canadian working in US?

Jun 1, 2021 8 Comments

In term of money wise, is there major benefit if I keep residence tie with Canada for tax or should I give up?

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TOP 8 Comments
  • Dodge
    LLAA68

    Dodge

    LLAA68
    I have a question, if you work at Seattle as a canadian citizien, do you still need to pay Canadian income tax ? Can you still open up Roth IRA/401k accounts in the states?
    Jun 2, 2021 2
    • New / Eng
      VmQq02

      New Eng

      VmQq02
      It all depends on your tax residency. You might be liable for some taxes if you moved mid year and started work in US in September. You're not double taxed on the other hand because there are treaties between the two countries, so you might need to pay the difference that you owe to the highest tax authority. Usually it's CRA, but it all depends what and how you earned money. The next year, you probably won't need to file Canadian taxes as you won't be a Canadian tax resident. I say probably because you still might be considered one for tax purposes. There isn't a clear and it's based more on a sniff test of 'major ties' vs 'minor ties' vs no ties to Canada. For example, if you have a house and a spouse living in Canada, you might be considered a tax resident for Canada as you have significant ties to Canada. Minor ties might be a banking account in Canada or a loan, but you're primary residence is somewhere else and so is your family.
      You can still open IRA and 401K accounts and contribute to them. It's also possible to then bring them to Canada and put to RRSP, but there is overhead and some fees you got to pay to US and IRS. You can also leave them and deal with it after retirement...
      Jun 2, 2021
    • Dodge
      LLAA68

      Dodge

      LLAA68
      Thanks a lot for the detailed answer.
      Jun 2, 2021
  • Apple
    LC->TC

    Go to company page Apple

    LC->TC
    Lol OP seriously?
    Jun 1, 2021 3
    • Apple
      LC->TC

      Go to company page Apple

      LC->TC
      The part about foreign national working in US expecting preferential tax treatment
      Jun 2, 2021
    • New / Eng
      VmQq02

      New Eng

      VmQq02
      Well, it doesn't hurt to try lol
      Jun 2, 2021
  • New / Eng
    VmQq02

    New Eng

    VmQq02
    Are you in US now? Also, what is le TC and YOE?
    Uhm, I thought that the federal taxes are about the same for both countries with a slight advantage for US. If you have a residential ties to a particular place, wouldn't you have to pay both federal, state and provincial taxes? I would assume in that case the taxes would be higher again (unless you live in California and have residence in Alberta).
    Can you elaborate as to why you think there is a tax advantage as Canadian tax resident?
    Jun 1, 2021 0