Expatriate & Canadian Taxes


I am an employee of the Consulate of Canada in the United States as a
non-rotational, locally engaged staff with an A2 visa, and currently file
taxes as a factual resident with the province of XXXX. I am considering
buying a house in the U.S. and don’t have any “real intent” to return to
Canada. I would like advice on how to file my taxes and reduce the amount
of taxes I pay. Are you familiar with my status/situation and can you help
me? If so, how?

Thank you,

david ingram replies:

First you have to apply for a US status. At this moment, you will not find
this easy. Applying for a US resident alien card without a US employer is
likely taking 14 years at the moment.

Even if you were to achieve the status of a resident alien, while you are
working for the Canadian Government, you are ONLY taxable in Canada under
article XXIX of the US / Canada Income tax treaty.

For instance, we have several US clients who have lived in Canada as landed
immigrants for years and have Canadian spouses and children.

They have decided to go to work for the US government in Canada and
immediately become exempt from Canadian Income tax even though they continue
to live in Canada, have Canadian medical, Canadian driver's licences and are
even eligible at the end to receive a Canadian Old Age Pension.

I am sending this out to some 10,000 people who receive this to see if
anyone else has a better idea.

I also phoned and talked to two former Canadians who remained in the states
after leaving the Canadian Government service. It turned out one had been
born in the he US when his father worked at a Canadian Consulate and the
other obtained his US citizenship through his parents.

Answers to this and other similar questions can be obtained free on Air
every Sunday morning.


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