Use US or Canadian citizenship?

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
MaybeMovin
Posts: 1
Joined: Sat Jan 09, 2010 3:30 pm

Use US or Canadian citizenship?

Post by MaybeMovin »

Hello: I haven't seen this specific question yet....please forgive me if you've answered it already!

I have US and Cdn citizenship, but have never lived in the US (my parents moved to Canada in the late 60s; I applied for and received my SSN and Passport in my 20s). I have never worked in the US. I have never filed a tax return in the US.

I have a job offer from a firm in California, and am considering accepting it. We (me, wife, 2 kids) will not be able to move right away, and will definitely keep our house in Canada (rent it out) for the foreseeable future.

Most likely, I will work from home (in Canada) for ~6 months, with frequent travel to the US office during that time.

I have been looking through this forum (and Canuckabroad) and this is what I assume is a reasonable approach:

1. 6 months: Work in Canada for US firm (paid in US $).
Should I be a contractor (self-emplyed in Canada--I have an old GST number lying around from construction work in the 90s) [b]or[/b] should I be an employee of the US firm?

2. After the move to US: should I work as US citizen or a Canadian? (do I have any choice?) I think that as a US citizen, my wife can work and there must be other "family" benefits for citizens...

I expect that we will use an accounting firm such as yours to work it all out.

Any feedback / suggestions would be greatly appreciated!
nelsona
Posts: 18678
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

First off, before venturing to US, you will need to do your last 6 years of US tax returns.

It will probably yoru firm that will decide whether to make you a Cdn employee (ie. Cdn payroll, EI, CPP) or if they simply pay you asa contractor.

I'd be choosing contracter, making sure they add the 30-40% that they won't have to pay in benefits.
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