I am an American starting a Job in Ontario, seeking HELP.

garymgoodman · Post by **garymgoodman** » Tue Jul 31, 2007 4:43 pm

I am a US citizen starting a job tomorrow in Canada, what should I be aware of? There are not many Americans working in Canada, that I have been able to find, is it because the tax penalties are too great? What percent of my gross income ($50.00hr) can I expect to bring home? Then I have to pay taxes in the US? Will there be anything left? Should I just forget about showing up?

nelsona · Post by **nelsona** » Wed Aug 01, 2007 7:15 am

While you will have to pay Cdn tax on your wages 9and any other income you make if living in Canada), the IRS will credit you for any Cdn tax and payroll taxes you pay, so you will only pay the Cdn/prov rate.

Ontario has very competite rates with any of the high tax states.

What may increase your taxes is living in US and working in Canada, since this will likely mean you pay Cdn/prov AND state taxes. Living in canada removes the state tax burden.

garymgoodman · Post by **garymgoodman** » Wed Aug 01, 2007 6:55 pm

nelsona,

I neglected to say that I will be commuting each day to Windsor, ON. I will not be living in Canada. Does this change your reply?

nelsona · Post by **nelsona** » Wed Aug 01, 2007 7:07 pm

I answered that. Living in MI and commuting to Canada is the highest tax rate, since you will pay MI tax on top of canadian and ontrio tax.

You will only pay Cdn/ontario tax on your wages, not any other income you might have, though.