How will I be taxed if I accept this Canadian job?

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sknelson111
Posts: 2
Joined: Mon Aug 11, 2014 12:16 pm

How will I be taxed if I accept this Canadian job?

Post by sknelson111 »

Hi,

I am a U.S. citizen and am concerned that I will be double taxed on my income by accepting a job offer I have in Montreal. Here are the details:

- The job lasts from 1, Sept, 2014 - 15th, Feb, 2015.
- I will be renting a place in Montreal during the duration of my stay, and have no spouse or dependents.

Please let me know if there's any additional information I can provide. And thanks for your help!

Cheers,

Sue
nelsona
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Post by nelsona »

While you won't be "double taxed", you will be taxed first in Canada/Qc and the nin US, with US "crediting you with some of the tax you paid In Canada. Unfortunately because of the split between years and between countries, you will have more tax top pay in US.

Possibly if you don't earn 10K in canad in either year that portion won;r be taxed in Canada, but that implies salary less than 80K/yr.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
sknelson111
Posts: 2
Joined: Mon Aug 11, 2014 12:16 pm

thanks!

Post by sknelson111 »

Thanks Nelsona,

That sounds like a bad deal for me. Thanks for your feedback, it's pretty tricky figuring this stuff out, and I had a feeling I was risking getting taxed in both countries.

So you're saying I would be taxed in the U.S. for the full amount I earned in Canada with no breaks (I would earn more than 80k), in addition to fully being taxed in Canada for any income earned there (I hope Canada can't also tax me for my full year's income, include that which I've earned in the U.S)
nelsona
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Post by nelsona »

You would get fully taxed in canada.

You would get "breaks" as you call it, bu tthey wouldnot wipe out the US tax on that income, even though it the US taxrate is lower.

The main problem is that your work would span over two tax years, but not be afull year, which would get you exempt from US tax on that income.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
voribo
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Joined: Mon Aug 04, 2014 1:59 pm

Post by voribo »

Keep a good record of all moving details, including all related dates and receipts for travel, distances traveled, meals, hotels, car rental , etc. Though the rules vary, these can be used in both countries to reduce your taxes.
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nelsona
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Post by nelsona »

Moving expenses incurred to move TO canada are not deductible on one's Cdn return.

This is clearly shown in the "Newcomers" guide from CRA T4055 and on form T1-M.

Typically only students coming from or leaving canada can claim Moving expenses on their Cdn retunr, under certain conditions.

But not those moving to canada for work, nor non-residents.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
voribo
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Post by voribo »

Well, there is a move from the US to Canada, then a move from Canada to the US. Each country has rules, including those for eligibility, regarding the claiming of moving expenses. As a taxpayer, I'd be keeping the above mentioned records to hand a tax accountant at tax time, who will decide which are useful and eligible in either country.
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nelsona
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Post by nelsona »

Just to close the loop, the move FROM Canada would not be deductible either on his Cdn return.

varibo made the statement "these can be used in both countries to reduce your taxes".

They can is US only, which might still useful, as varibo later clarified.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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