Living in USA, Working in Canada

peekay · Post by **peekay** » Wed Aug 08, 2012 2:23 pm

Hi,
I'm a dual citizen of USA and Canada. I just moved to the USA from Canada but will continue to work for the same company in Canada, commuting across the border each day to work. The company has offices in the US, so they'll be switching me to being an American employee, being paid in USD, and covered by the US health plan.

My question is, should I be paying taxes in the US or Canada and how should my deductions work?

Thanks!
PK

nelsona · Post by **nelsona** » Wed Aug 08, 2012 2:45 pm

You are still working as an employee in Canada, so you will be taxed there. You will end up paying Canada, Prov, US and state tax. With credit given in US for your Cdn/prov tax paid.

You will need to send CRA money quarterly to cover this, since your US payroll will be deducting US tax.

peekay · Post by **peekay** » Wed Aug 08, 2012 7:20 pm

Thanks for the reply.
I was hoping that living in the US would make me a US resident (and not a Canadian resident) and thus liable for US taxes. Am I misunderstanding the issue?

Cheers,
PK

nelsona · Post by **nelsona** » Thu Aug 09, 2012 9:32 am

Its borderline, if you excuse the pun, but you could make the case. You really are working as an employee in canada, so to be on US payroll really isn't allowed. You are not being sent up to canada temporarily.