Cross-border commuter tax obligation/process

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
jakker7149
Posts: 1
Joined: Thu Dec 21, 2023 2:01 pm

Cross-border commuter tax obligation/process

Post by jakker7149 »

I am an American citizen and hold Canadian PR. I live in Seattle, but I'm thinking of moving to British Columbia and commuting to my job in Washington (it is actually remote based in Tucson, AZ, but payroll has me as a WA resident). My plan is to commute daily to a public library or coffee shop across the border in the US.

I don't particularly want to work fully remote from Canada, because I want to keep my American benefits (I have a great healthcare team in the US and have a chronic disease), and my employer is small so they probably won't know how to navigate Canadian payroll requirements (CPP/EI, etc.). Regarding taxes, would the situation look like this?:

- Taxes deducted at-source as I'm working physically in the United States (income, FICA, etc...WA does not have state income tax)
- File with IRS to fulfill requirements being an American citizen.
- File with the CRA, applying an FTC to avoid double taxation. I certainly will owe more to CRA, so might adjust W4 to have employer withhold more

Is this the correct way to do things?
nelsona
Posts: 18364
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Cross-border commuter tax obligation/process

Post by nelsona »

That will work.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Post Reply