Complicated - Temp move back to Cda for DH Fed govt job

[sparksals]

I think it is complicated. I don't want it to be which is why I am asking here in anticipation.

My husband works for the US federal govt. He may have an opportunity to move to a job in Ottawa for US Homeland Security. I am a Canadian citizen with a GC, he is American. Apparently this job is covered under the Status of Forces Agreement (SOFA).

While researching on the US side for what the govt pays in terms of moving allowances, living expenses, taxation, it would still be like we are living in the US. We wouldn't file taxes in Canada - I don't think.. I could be wrong. He will be paid in US funds.

The monkey wrench - what if I want to work? As a Canadian citizen, of course, I can. How complicated would that make our taxes if I did happen to find a job? I know we'd have to file a Cdn return, but how complicated would it make both returns?

I'm also researching health coverage. We could elect to remain on US plans through the Foreign Service, but I am told others in Canada on the same plan are told they have to make hefty deposits, even in an ER situation at the hospital. One guy enacted the ER extradition for health reasons when his wife was having a baby so they could have the child in NY b/c they were told their deposits would be so high. I researched OHIP and we are eligible for coverage and it may work out that we can save quite a bit of money opting out of US health plan. Would that have an affect by having to file Cdn taxes?

This is all in infancy stage. He has applied and has no idea if he will get the job. If he does, it will be a huge stepping stone for his career. We would be in Canada 5 years max then come back stateside until he has to retire in 2025.

Just trying to get an idea of what all this entails. What I am most interested in is how complicated taxes would be if I did elect to work while living temp in Canada?

[nelsona]

First, he *might* have to file Cdn taxes, but certainly not pay Cdn taxes on his job income. That is specifically excluded from Cdn taxation by treaty and Cdn regs. That is easy.

By living in Canada, you both become Cdn residents. So all income you would make would be taxable in canada (and US because you have a GC), except his govt wages. That is easy. You would both be eligible for Cdn health coverage. the value of US health coverage at that tpoint would be suspect.

There in no need to overthink this. You are moving back to canada. No need to view this as temporary, since there is no advantgate to call it so.

You might want to get your US citizenship before leaving. Not because you will have trouble statuswise, but because, your time in Canada will not count towrards the time spent you need, which you probably already met.