Urgent: Tax implications for commuting to work in US

[carl.mav]

Hi,

I am considering talking a job with a company in the US but want to know what the tax implications will be for my planned transition period. My wife and two children would remain in Canada until the summer months and I would commute home on weekends. I want to ensure that I will not be taxed twice or be penalized somehow that will make it difficult for me to make ends meet.

I have to have an answer for the company tomorrow (Feb. 20) and would really appreciate and advice you can provide.

Carl

[nelsona]

Your tax will basically be the same as it would be if you worked and lived in your current province, it will simply be paid out amongst the US, the state, canada and the provinces, instaed of canada and the provinces. Only after your family moves will you be free of cdn tax.

[carl.mav]

Thanks a lot for the response.

For clarification, how would the taxes be handled? I am assuming that my employer would deduct relevant taxes for the US authorities, but how would the Canadian portion be handled? Should I have an escrow account so that I can cover the tax difference in 2009?

[nelsona]

You will handle the Cdn tax at tax time next year. You might want to put some money aside on your own, but it is not required.

The extra tax will not be that much