Im sure this has been asked before, but it's been some time and I'm not sure how tax laws have changed.
We are thinking of moving from the U.S. to Canada on a permanent basis. I currently work as a contractor for a company in the U.S. and plan to continue to do so for the foreseeable future.
Currently, I am making somewhere north of 150K in U.S. Dollars. If/when we move to Canada, how does this effect my taxes? I would do all my work from my home in Canada with an occasional weeklong trip to client sites in the U.S. I know the weeks I am in the U.S. would be deemed U.S. based income, but would the remaining not be? Also, I know the IRS has restrictions on incomes over a set level to avoid tax dodging. Truth is, I plan to stay in Canada for the foreseeable future, so I'm not trying to dodge taxes, I just don't want to be double taxed more than I need to be.
I currently own an LLC in the U.S. As well and can bill through it if needed, but I think they are recognized as corporations in Canada and if I ever moved back, my profit from the business would be taxed steeply by Canada as a penalty for leaving.
I really don't want to renounce my citizenship as I would like the option to move back, but is that the only way to avoid US taxes?
Moving from the U.S. To Canada. Will continue to work in us.
Moderator: Ron Liberman
I will have to go through immigration, but I should have little difficulty with it. My wife is a dual citizen. She was born and raised in Canada, moved to the U.S. On a fiancé visa, and became naturalized 4 years ago. Our on is a de facto dual citizen with his mother being one. I'd need to get forms filled out for Canada to recognize him, but should be a formality. It would just be me that would need to go through immigration, and being that I would be self sufficient should go a long way toward the process I would imagine.