Canadian going to work for 1 yr in USA - tax issues?

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Demann
Posts: 2
Joined: Tue Jun 12, 2018 8:51 pm

Canadian going to work for 1 yr in USA - tax issues?

Post by Demann » Wed Jun 13, 2018 12:46 am

I am a Canadian , living in Canada and I just graduated from university in Canada. I have a job offer in the US which will pay 70K+ health insurance. I plan to work for 1 year then return to Canada and continue with a masters degree. I have some investments ( mutual funds, rrsp, tfsa ) .
I want to minimize my overall tax bill and keep things as simple as possible.
What do I need to do ??
What are my options??
Thank you in advance for any advice.

nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian going to work for 1 yr in USA - tax issues?

Post by nelsona » Wed Jun 13, 2018 9:51 am

First, you need to be sure that you are only leaving for one year. many TNers go down thinking it is only for a short time, and end up staying for the rest of their career.

Are you keeping a place to live in Canada?
Nelsona Non grata. Non pro. Search previous posts.

Demann
Posts: 2
Joined: Tue Jun 12, 2018 8:51 pm

Re: Canadian going to work for 1 yr in USA - tax issues?

Post by Demann » Wed Jun 13, 2018 1:24 pm

I do not anticipate staying more than a year, however, you are right, it is possible I could stay on longer.
Is there something I can do which would give me the greatest flexibility as well as minimizing my tax bill?

nelsona
Posts: 15225
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian going to work for 1 yr in USA - tax issues?

Post by nelsona » Wed Jun 13, 2018 1:47 pm

Not really.
To lower your tax bill you would need to become non-resident, which would trigger departure tax, as well as tax on your TFSA.
For flexibility, you would maintain a Cdn residence, pay the higher (generally) tax bill on your US wages, but be able to keep your current accounts as is, not to mention having Cdn housing costs to pay, and wasting any unused tuition credits, since these would supplant the tax credits from your US taxes..


So, it is either or. I tend to suggest becoming non-resident, closing TFSA, you can always fund it back when you return.
Nelsona Non grata. Non pro. Search previous posts.

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