So, I met an incredible woman in St. Louis while down there on a business trip two years ago.
We have been doing the long distance relationship thing ever since, but now we've decided to get married and I'm going to move down there to be with her.
The company I work for doesn't want to lose me so they have agreed to me working remotely from St. Louis.
We have investigated with an immigration lawyer what has to be done to allow me to move down there and marry her (for those that are interested we were told to apply for a fiance visa and then after we are married I apply for a green card) and now I have questions about working and taxes.
My first question is will I need to apply for some sort of work visa? (The immigration lawyers told me I wouldn't have to, but I want to make sure.)
My second question is who do I pay tax to as I will be working in the USA for 3 weeks a month and in Canada for 1 week a month? (I read on another website that I would pay tax in Canada for the work done here and tax in the USA for the work done there?)
USA / Canada Tax Question
Moderator: Mark T Serbinski CA CPA
as for working visa, i think the fact you married to US citizen would grant you a green card --that will let you work in US.
the fact you live US -- so you are US resident, you report all your income to IRS (i mean all -- that is global income). With green card, you should report your global income even if you do not live in US.
the fact you live US -- so you are US resident, you report all your income to IRS (i mean all -- that is global income). With green card, you should report your global income even if you do not live in US.
So other people I have been talking to are telling me that I will need to file tax returns and pay income tax in both Canada and the USA.
These people have friends that have been in this situation and have had to pay income tax and file tax returns in both countries.
Can anyone disprove or verify this for me?
Thanks.
These people have friends that have been in this situation and have had to pay income tax and file tax returns in both countries.
Can anyone disprove or verify this for me?
Thanks.
Thanks for your reply.
From reading the Canadian / USA tax treaty I get that I have to file tax returns in both countries, but if I understand article 24 of this rather confusing document at all, the amount of tax I pay to the US government gets deducted from the amount of tax I pay to the Canadian government to eliminate double taxation.
Can someone please confirm this for me?
Also can you tell me if it applies to federal and state/provincial taxes?
So as an example if I would normally pay $26,000.00 in federal income tax to the Canadian government on $100,000.00 income and the US federal government told me I had to pay $11,000.00 in taxes I would in the end pay the Canadian government $15,000.00 and the US government $11,000.00.
Also if I normally pay $10,000.00 in provincial income tax to the Alberta government on $100,000.00 income and the Missouri state government told me I had to pay $5000.00 in taxes I would in the end pay the Alberta government $5000.00 and the Missouri government $5000.00.
If someone can tell me the processes for this as well.
I mean do I pay both and then claim money back at tax time?
Thanks.
From reading the Canadian / USA tax treaty I get that I have to file tax returns in both countries, but if I understand article 24 of this rather confusing document at all, the amount of tax I pay to the US government gets deducted from the amount of tax I pay to the Canadian government to eliminate double taxation.
Can someone please confirm this for me?
Also can you tell me if it applies to federal and state/provincial taxes?
So as an example if I would normally pay $26,000.00 in federal income tax to the Canadian government on $100,000.00 income and the US federal government told me I had to pay $11,000.00 in taxes I would in the end pay the Canadian government $15,000.00 and the US government $11,000.00.
Also if I normally pay $10,000.00 in provincial income tax to the Alberta government on $100,000.00 income and the Missouri state government told me I had to pay $5000.00 in taxes I would in the end pay the Alberta government $5000.00 and the Missouri government $5000.00.
If someone can tell me the processes for this as well.
I mean do I pay both and then claim money back at tax time?
Thanks.
You will be US resident. Therefore you will only report (after you are non-resident) Cdn source income on your Cdn return. No need for foreign tax credits.
On your US return, you wil report ALL income (including Cdn-source income -- which technically will only be income earned while on Cdn soil), and that calculate a credit on your US return for the Cdn tax you pay on your Cdn income.
You don'tneed the treaty to do this. It is all covered by CRA and IRS regulations.
Btw, for this to be leagl, your firm will have to pay you as a US worker, not as a Cdn worker.
On your US return, you wil report ALL income (including Cdn-source income -- which technically will only be income earned while on Cdn soil), and that calculate a credit on your US return for the Cdn tax you pay on your Cdn income.
You don'tneed the treaty to do this. It is all covered by CRA and IRS regulations.
Btw, for this to be leagl, your firm will have to pay you as a US worker, not as a Cdn worker.
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