Paying Taxes In Canada vs US While working on TN Visa.

Oct 26, 2020 16 Comments

Is it worth it to pay taxes in California, US as opposed to in Ontario, Canada while working in the US on a TN visa? I currently work in Illinois and paying .y taxes in the US but I am moving to California soon and wondering if it is best to change my tax payment to Canada since California taxes are high.

The disadvantages of not paying taxes in Canada prevent you to access loans as a Canadian residence. Banks tend to treat you as a foreign investor. Also, you lose access to your TFSA privilege.

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TOP 16 Comments
  • Amazon
    ca1if0rnia

    Go to company page Amazon

    ca1if0rnia
    Just become non resident of Canada
    Oct 26, 2020 11
  • how is it possible to change tax base like that? I think you need an accountant as it maybe illegal, residence determination is very strict and not easy to abitrage like that
    Oct 26, 2020 0
  • as TN it is hard be treated as non residence for tax purpose in Canada, you tie to Canada is likely there such as bank accounts, a house or mortgage, family members in Canada, etc... the list is super long. Since you are also residence to Cali, u need to pay tax to Cali and only get credit from tax paid to Canada for the federal portion only
    Oct 26, 2020 0
  • Your question makes no sense lol. If you’re already a US tax resident, you will stay as one and you would have ended paying Canadian taxes.

    If your employer is based out of California or you reside in California, then you pay taxes to California.

    Paying taxes to Canada is a choice you can make, but America has first dibs on all the money you owe. You can pay extra taxes to Canada if you want, America don’t care about that.
    Oct 26, 2020 0
  • IBM
    FbiA58

    Go to company page IBM

    FbiA58
    From my understanding you need to pay the higher tax amount
    Oct 26, 2020 0