Questions about US citizen moving to Canada

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.

Moderator: Mark T Serbinski CA CPA

Post Reply
FL350
Posts: 1
Joined: Sun Dec 31, 2006 7:32 pm
Location: US

Questions about US citizen moving to Canada

Post by FL350 »

Happy New Year! I am a US citizen employed by a US corporation. My wife is Canadian. We currently live in the US but are considering moving to Ontario. I can live anywhere with my job (airline pilot) and my wife doesn't work. I know I will pay US federal tax as I do now, probably not state tax if living in Canada full-time. What status will I be considered for Canadian taxation, resident or non-resident of Canada? How will that affect what I'll pay Canada? My income will be entirely from US sources (including reserve military pay). Of course my goal is to avoid double-taxation. Thanks!
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You will be considered a resident of Canada when you and your spouse move to candad (you will have to go thru immigration formalities), and will thus report all your world income to Canada. As a US citizen you will do the same to IRS.

A complex series of foreign tax credits will likely result in paying very little no tax in US.

Transportation employees have to go thru complex calculations to determine the % time was spent in each countries airspace, to determine 'source' of the income.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Post Reply