QUESTION:
I am currently a U.S. citizen with a job at a U.S. company. Since I am a
programmer, there is no physical limitation on where I perform my work.
Therefore, I could move to Canada, but continue to do the same work for the
same U.S. company. I cannot, however, begin to understand the legal
ramifications of this.
Pertinent info:
I am a full-time employee of the American company, not an independent
contractor.
I have no income other than salary (no rental properties, etc.)
I intend to remain a U.S. citizen for the foreseeable future, but would like
to reside in Ontario.
Thank you,
Chicago, IL
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david ingram replies:
If you moved to Canada as a US citizen performing the work in Canada, you
would be taxed FIRST in Canada. the US company should start paying you as a
contractor and not deduct FICA (social security), Medicare or Illinois or US
federal income taxes because you are not working in Chicago or the US.
You would then file a US 1040 reporting all the income earned in Canada and
exempt the first (up to) $80,000 by filing form 2555. If your income
exceeds $80,000 US, you would then claim a foreign tax credit on schedule
1116.
Goto www.centa.com and read the [US/Canada Income Tax] section.
You would then have to file forms TD F-90.22 with your US return to report
your Canadian Bank accounts. See the answer coming later with a CEN-TAPEDE
Q & A.
To move to Canada, you can start off by going to:
http://www.cic.gc.ca/english/skilled/assess/index.html
This is the self-assessment test for an individual to determine his or her
eligibility to immigrate to Canada without being sponsored by a spouse.
I know this will help you make your decision. If we can help you, remember,
that is what we do for a living. In particular you should goto
www.centa.com and click on and read [US/Canada Taxation] BEFORE you come.
Although specifically geared to the United States, this section contains
references to Saudi Arabia, Great Britain, Libya and shows the way Canada
taxes people from other countries:
Answers to this and other similar questions can be obtained free on Air
every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Dundee Wealth
Management and I, David Ingram will be hosting an INFOMERCIAL but LIVE talk
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