Commuting to work in Detroit from Windsor

QUESTION: Hello,

I am Canadian PR holder and currently work in USA on H1B visa. I get W2 from my current employer in the state of Texas.

I am planning to move to Windsor, Canada and drive to detroit, MI everyday to work for the same employer who has an office in Detroit.

Will I get a W2 for Detroit, MI and I have to file federal tax for US and state tax for MI and also file tax in Canada ?

Can you please provide me the process which should be followed ?

Thnx.

Regards,


---------------------------------------------------------------------------


david ingram replies:

You will get a W2 and file a 1040 and Michigan MI 1040 plus a Detroit City Tax return D-1040NR

Then you will report the income again in Canada and claim a foreign tax credit for the taxes and FICA and Medicare paid in the US on line 431 of your Canadian return.

Your tax will be higher than it is in Texas because Texas has no State tax and Michigan and Detroit have taxes and Ontario has taxes.