<soalvajavab1[at]yahoo.com> wrote:

- quote -

This is going to depend on a couple of factors. Unlike the
US, which taxes the worldwide income of all of its citizens,
Canada taxes only people they consider to be "residents".
The definition is a bit complicated and leaves a lot of room
for interpretation, but if you have "cut your ties" from
Canada, then you will not owe tax during that time. No one
factor is a determining one, but if you still own a home in
Canada, your immediate family stayed there, you still hold a
driving license, medical card, etc there, then you are still
a Canadian resident, and will stil have to file a return.
If you can say no to all those things, then you are likely a
non-resident. (But please don't try to interpret that list
too much -- get the list and see if it applies to you, or
ask someone knowledgeable.)

By the way, if you have a "home" waiting for you in Canada,
you are a Canadian resident. Many of my Canadian clients
working in the US have a "rental property" in Canada and are
non-residents who happen to still have a Canadian
investment. Planning!!!

- quote -

The year you move to the US will be confusing. You will
have one of a few situations:

If you are no longer a Canadian resident, you will have a
T-1 return for the income you made there at the start of the
year. You will then have a US return: Either a 1040 return
showing all of your income during the year, or a Dual Status
return, taxing only your US income but with more restrictive
rules.

If you are still considered a Canadian resident, you will
have both a T-1 showing all of your worldwide income, and
one of the US returns shown above.

- quote -

Actually, no. If you are filing returns that show the same
income in both countries, then you will be able to take a
credit on your Canadian return for the income tax paid on US
income. From your example below, this is probably the case
(but again, someone is going to need more details to make a
determination). You will not be paying double tax on any
income, but you *will* end up paying the higher of the two
taxes.

However, there is another issue here. Many states will also
tax your income -- and there may be some double taxation
depending upon the state involved. You can get a Canadian
foreign tax credit for state taxes paid, but they might be
more than the credit.

I have
- quote -

Frankly, if you expect to have this kind of income, it would
be well worth investing an hour or two of time with an
accountant knowledgeable with taxes on both sides of the
border. You have some things that probably should be sorted
out before you start the US job, or at least early on in
your stay. The discussion should be specific to your
situation, since the answers may not depend only on your
current situation (avoid double taxation) but also to future
considerations (where should I put my retirement account
contributions). The CRA website has an international
section with publications specific to your situation Find
them and read them. But get some specific advice, too.

Good luck!

Bryan

--
Bryan Kellar, EA
Oregon Tax Help, Inc. -- Portland, Oregon
www.oregontaxhelp.com
www.canadatax.org
Moderator of USCanadaTax Yahoo group at
http://finance.groups.yahoo.com/group/USCanadaTax/

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"soalvajavab1[at]yahoo.com" <soalvajavab1[at]yahoo.com> wrote:

- quote -

You should be able to claim a credit in Canada for the US
tax paid on your income reported in both countries (at least
that's the way it works Stateside). I think it's on Schedule
1 of the T1.

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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Working on TN1 Visa in US as Canadian Citizen, how my Tax
declaration should going to work? I am a bit confused. I
have to pay Uncle Sam W2/W4 I guess and do I have declare my
T4 income in Canada at the same time? Pay Double Tax? I have
a house and am incorporated in Canada as Computer
professional but that corp doesn't come into play for my US
contract. I am under W2 there. Please clear me with an
example. Let's say I make 100/Hrs or $100000 annualy in US
as an example. How I am going to pay the min tax to US and
Canada? any web sites / accountants specific for these kind
of situations.

Thanks Guys.

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