Cross-border physician: works in Canada- lives in US: Tax?

MontereyMD · Post by **MontereyMD** » Wed Feb 22, 2012 5:51 am

Great forum as I'm really confused now. I'm a dual US Citizen/Canadian citizen.
I work in Canada (White Rock,BC) as a self-employed physician and gross over $270K.
I am single and live just over the border in Blaine,USA and have a house there. I also have another place in Vancouver BC that is my parents and could be considered my residence. For the last 15 years I lived in California and just moved to Blaine 14 months ago.
Considering everything in terms of taxes, retirement contributions etc..... what is the bottom line? Would I keep more of my money from my Canadian self-employed job if I lived in Canada and was considered a Canadian tax resident or if I lived in the US and was considered a US tax resident???

It seems if I live in Canada and work in Canada for the 1040 I can file a 2555 form and a 1116 form and have almost US tax but if I live in US and work in Canada I can only file the 2555 form and not the 1116 form and so have to pay SEP self employed tax of 15% on top of the highest tax rate of 38%??

appreciate any advice

nelsona · Post by **nelsona** » Wed Feb 22, 2012 7:45 am

You've got it backwards. If you live in US, you cannot file 2555.
Besides, 2555 would only cover a miniscule portion of your income, so you would file 1116 in all cases.

In any event, as BC resident you would pay more tax, simply because all your income would be subject to BC tax, not just wages, especailly since WA doesn;t have income tax.

MontereyMD · Post by **MontereyMD** » Wed Feb 22, 2012 11:50 am

thanks!