US Res working across the border

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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nelsona
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Re: US Res working across the border

Post by nelsona »

Union Dues are no longer deductible in US. Not the same as pension contributions.
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nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: US Res working across the border

Post by nelsona »

The rule of thumb is you treat payroll items on T4 the same way they are treated on W-2. So pension and medical; contributions made thru payroll simply reduce your taxable wages. Union dues in US do not.They were deductible on schedule A as a miscellaneous deduction until 2017, but no more -- as with all miscellaneous deductions.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Shrek
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Re: US Res working across the border

Post by Shrek »

A wealth of knowledge.
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Frankd1
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Location: Canada

Re: US Res working across the border

Post by Frankd1 »

I'd like to chime in if I may....I'm a pilot for AC and a number of my colleague are US resident and commute to their base in Canada to start their pairings.

In the past CRA taxed you only on the portion of the flight in Canadian airspace. So it was beneficial to depart Canada and head south - shortest time in Canadian airspace.

Then they changed the rules to these scenarios:

1. Flight departs Canadian airport and lands at Canadian airport: entire flight is taxable in Canada regardless if any portion is over US airspace.

2. Flight departs Canada and lands outside of Canada: 50% of flight is taxable in Canada.

3. Flight departs outside of Canada and lands in Canada: 50% of flight is taxable in Canada.

If you are resident in the USA, all of the income is taxable to the IRS with credit given for the portion paid to Canada.

This rule change was not being applied equally to other employee groups, eg. Flight attendants.

Some pilots fought the rule change and I've heard that CRA is going back to the old way on a case by case basis but I'm not sure the exact criteria here.

Some of the pilots were using software to accurately keep track of their time in Canadian airspace - under the old system.

This is especially of interest for me as my wife and kids (dual citizens) and I, are looking at a move to the USA in a few years.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: US Res working across the border

Post by nelsona »

There are a couple of firms that specialize in AC pilot returns. Should be pretty easy to find.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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