US Resident Canadian Employed


My husband is US citizen, I am Canadian. Can we save on taxes by living in US and keeping our jobs in Canada.  Also understand that mtg int. is tax ded. in US. Thx. ______________________________________________-
david ingram replies:

Living in the US and working in Canada will cost you a lot more in expense although you may make up for it with a cheaper house, gas for your car and some groceries.

For instance, living in Washington State and working in BC will not save you any tax on your wages.  It may save you a little if you have large investment income but it would have to be over $10,000 a year to be meaningful.

The biggest problem is that you would no longer qualify for BC (or other province) medical and it would cost you anywhere from $300 to $1,500 a month to buy your own medical.

The US mortgage interest deduction is of no use to you  if you are working in Canada because you will still pay full Canadian taxes first.

And it is possible for most Canadians to arrange their affairs to make their Candian mortgage deductible.   Goto  and read the  November 2001 newsletter in the top left hand box. �