Working in Canada as US citizen - double taxation?
I'm thinking of moving to Vancouver, I'll have a salary reduction which I'm okay with - but would I potentially have to pay taxes both in Canada and in the US? My TC would be well above the 100k limit for foreign earned income exclusion (FEIE). I heard there's another method of preventing double taxation called Foreign Tax Credit, but how much would that cover? I'll be talking with a tax accountant after the holidays, but I wanted to see if I can understand this sooner 🙏
You'll only pay Canadian taxes as they are higher. You'll need to file a tax return then claim a foreign tax credit to 0 out your taxes in US
Sweet, this was exactly what I was hoping! Thank you!
Hey OP, unrelated, just wanted to know why have you decided to move from US to Canada and take a pay cut?
Fair question. Because I'd only take a salary pay cut, RSU appreciation was high enough to not worry about that.
Sure, I meant, what is it that is making you move from US to Canada? I am in a similar situation US vs Canada (on a visa though) and have to decide soon.
You'll likely pay the higher of the two. And that's usually Canada
Thank you!!