US Citizen moving to , working in US & -
My_question_is: Applicable to both US and
Canada
Subject: US Citizen moving to Canada, working in US & Canada
Expert: [email protected]
Date: Thursday January 10, 2008
Time: 03:11 AM -0000
QUESTION:
I am a U.S. citizen in a long-term, comitted relationship with a Canadian and am anticipating an upcoming move to Canada. I am curious as to what my options were for working in both countries at the same time? I will be able to work remotely and retain my current U.S. job, although this will take me from full-time work to part-time. I also have a job offer with a Canadian employer for a job in Canada that would compliment my part-time schedule with my U.S. employer (as well as the required approval to legally work in Canada). Is it possible to work for employers in two countries, and if so, how would I represent the dual incomes to the appropriate tax authorities?
----------------------------------------Subject: US Citizen moving to Canada, working in US & Canada
Expert: [email protected]
Date: Thursday January 10, 2008
Time: 03:11 AM -0000
QUESTION:
I am a U.S. citizen in a long-term, comitted relationship with a Canadian and am anticipating an upcoming move to Canada. I am curious as to what my options were for working in both countries at the same time? I will be able to work remotely and retain my current U.S. job, although this will take me from full-time work to part-time. I also have a job offer with a Canadian employer for a job in Canada that would compliment my part-time schedule with my U.S. employer (as well as the required approval to legally work in Canada). Is it possible to work for employers in two countries, and if so, how would I represent the dual incomes to the appropriate tax authorities?
david ingram replies:
You are not alone. Many people who can, work on both sides of the border, some for years and years.
However, if you 'are' willing to do that, you should find yourself a job where your dual status is useful to one employer which should pay more for that ability.
That could be a company with customers on both sides of the border and you would be able to service those clients on either side without hindrance.
Or a company with offices or branches on both sides of the border and you could go back an forth and do anything at either location without hindrance,.
In your case, as described, you would be pay tax to the US first on the US sourced income and then report it again in Canad and claim a foreign tax credit for the tax, FICA and Medicare you paid to the US on line 431 of your Federal Income tax return and the appropriate line for the provincial credit on provincial schedule 428.
Then you would pay tax on the Canadian sourced income to Canada first and then report it to the US as well. At that point you would either exempt the Canadian earnings (up to $82,400) on form 2555 or claim a US foreign tax credit on US Schedule 1116..
We, of course would be glad to look after these for you by fax, snail mail, email or in person.
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On December 25, 2007, David Ingram
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However, I regularly search for the words"PAYING CUSTOMER" and
always answer them first if they did not get spammed out. For the last two
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out and as an example, as I write this on Dec 25, 2007 since June 16th, my
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$1,700 would be for two people with income from two countries
Catch - up returns for the US where we use the Canadian return as a guide for seven years at a time will be $150 to $500.00 per year depending upon numbers of bank accounts, RRSP's, existence of rental houses, self employment, etc.
Just a guideline not etched in stone.
David Ingram expert income tax service and immigration help and preparation of US Canada Mexico non-resident and cross border returns with rental dividend wages self-employed and royalty foreign tax credits family estate trust trusts income tax convention treaty advice on bankruptcy
It is very unlikely that blind or unexpected email to me will be answered. I receive anywhere from 100 to 700 unsolicited emails a day and usually answer anywhere from 2 to 20 if they are not from existing clients. Existing clients are advised to put their 'name and PAYING CUSTOMER' in the subject line and get answered first. I also refuse to be a slave to email and do not look at it every day and have never ever looked at it when I am out of town. e bankruptcy expert US Canada Canadian American Mexican Income Tax service and help
Therefore, if an email is not answered in 24 to 36 hours,
it is likely lost in space. You can try and
resend it but if important AND YOU TRULY WANT OR NEED AN ANSWER from 'me', you
will have to phone to make an appointment. Gillian Bryan generally accepts
appointment requests for me between 10:30 AM and 4:00 PM Monday to Friday
VANCOUVER (Seattle, Portland, Los Angeles) time at (604) 980-0321.
david ingram
expert US Canada Canadian American Mexican Income Tax
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Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) expert US Canada Canadian American Mexican Income Tax service help.
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Phone consultations are $400 for 15
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This is not intended to be definitive but in
general I am quoting $900 to $2,900 for a dual country tax
return.
$900 would be one T4 slip one W2 slip one or two
interest slips and you lived in one country only (but were filing both
countries) - no self employment or rentals or capital gains - you did not move
into or out of the country in this year.
$1,100 would be the same with one rental
$1,300 would be the same with one business no
rental
$1,300 would be the minimum with a move in or out
of the country. These are complicated because of the back and forth foreign tax
credits. - The IRS says a foreign tax credit takes 1 hour and 53
minutes.
$1,600 would be the minimum with a rental or two in
the country you do not live in or a rental and a business and foreign tax
credits no move in or out
$1,700 would be for two people with income from two countries
$2,900 would be all of the above and you moved in
and out of the country.
This is just a guideline for US / Canadian
returns
We will still prepare Canadian only (lives in
Canada, no US connection period) with two or three slips and no capital
gains, etc. for $200.00 up.
With a Rental for $400, two or three rentals for
$550 to $700 (i.e. $150 per rental) First year Rental - plus
$250.
A Business for $400 - Rental and business likely
$550 to $700
And an American only (lives in the US with no
Canadian income or filing period) with about the same things in the same range
with a little bit more if there is a state return.
Moving in or out of the country or part year
earnings in the US will ALWAYS be $900 and up.
TDF 90-22.1 forms are $50 for the first and $25.00
each after that when part of a tax return.
8891 forms are generally $50.00 to $100.00
each.
18 RRSPs would be $900.00 - (maybe amalgamate a
couple)
Capital gains *sales) are likely $50.00 for
the first and $20.00 each after that.
Catch - up returns for the US where we use the Canadian return as a guide for seven years at a time will be $150 to $500.00 per year depending upon numbers of bank accounts, RRSP's, existence of rental houses, self employment, etc.
Just a guideline not etched in stone.
This from "ask an income trusts tax service and immigration
expert" from www.centa.com or www.jurock.com or www.featureweb.com. David Ingram deals on a daily
basis with expatriate tax returns with multi jurisdictional cross and
trans border expatriate problems for the United States, Canada, Mexico,
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