My husband has dual Canadian/U.S. citizenship. I have my U.S. green card and am a Canadian citizen. We have lived in the U.S. for about 28 years and we both worked briefly in Canada before that.
My husband is an engineer and has kept his engineering license in Canada. He was just offered a permanent position in Canada from a Canadian company. We are both excited to return to Canada but realize we will have to pay U.S. taxes as well as Canadian taxes. We also want to make sure we will receive our U.S. social security benefits which will become due to us in 6 years. We do not own any real estate and will just move our belongings and one car to Canada.
If we both end up earning about $180,000 Canadian, will we be owing taxes on the total amount to Canada? How do we figure how much tax we'll owe to the U.S.?
Does my husband's career as an engineer help us in the amount owed in taxes to the U.S.?
Thank you for an information you can give me. We want to accept the employment offer but not if too much of our take home pay ends up being taken away by taxes from both countries.
Offered a job in Canada; need advice
Moderator: Mark T Serbinski CA CPA
You should definitely get your US citizenship.
It is very rare for a US citizen living in Canada to pay tax in US (since the Cdn tax is credited, and is almost always more than US), so it is just not worth renouncing or losing your GC thinking that you will save taxes. Besides since your husband will always file a 1040 (note that doe not mean pay tax), you will likely file jointly.
But just to allay any fears, leaving US, even giving up GC, will have no effect on Social Security payments.
With your US citizenship you will be free to move abot N America with no question.
I have absolutely no idea what you meant by "Does my husband's career as an engineer help us in the amount owed in taxes to the U.S.?" taxes are paid on a yearly bases, based on income, not past income or jobs.
It is very rare for a US citizen living in Canada to pay tax in US (since the Cdn tax is credited, and is almost always more than US), so it is just not worth renouncing or losing your GC thinking that you will save taxes. Besides since your husband will always file a 1040 (note that doe not mean pay tax), you will likely file jointly.
But just to allay any fears, leaving US, even giving up GC, will have no effect on Social Security payments.
With your US citizenship you will be free to move abot N America with no question.
I have absolutely no idea what you meant by "Does my husband's career as an engineer help us in the amount owed in taxes to the U.S.?" taxes are paid on a yearly bases, based on income, not past income or jobs.
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
Nelsona, by saying my husband is an engineer, I was wondering if NAFTA would come into play as far as taxes were concerned. I know that some trades let you move across the border easily because of the work but I have no idea about paying taxes for these people.
I have a green card and if I go across the border once a year (or every 6 months; I'll need to check), the green card will still be in effect. I had moved to Asia about 7 years ago for a 1 1/2 years and returned once in between and had no problems returning to the U.S. and working in the U.S. after that.
If I understand you correctly, if a person pays more tax in a country than they would if they lived in the U.S., then they won't have to pay taxes to the U.S. Is this correct?
I have a green card and if I go across the border once a year (or every 6 months; I'll need to check), the green card will still be in effect. I had moved to Asia about 7 years ago for a 1 1/2 years and returned once in between and had no problems returning to the U.S. and working in the U.S. after that.
If I understand you correctly, if a person pays more tax in a country than they would if they lived in the U.S., then they won't have to pay taxes to the U.S. Is this correct?
Your US Green card is only valid if you continue to live in US, or if you apply for permission to leave for more than six months. The 'coming back every six months for a visit' is NOT a valid method for keeping green card.
Each time you cross the border with GC, you will be asked 'where do you live'. Answering 'canada' even once, can and does get your GC pulled. The CBP is getting much more strict on this. Quite frankly, you were lucky last time. Get your citizenship.
NAFTA doesn't cover taxes. The tax treaty doesn't single out any profession (except for athletes and artists) for any special consideration.
Generally if the taxrate is higher in canada that US, you will noyt pay taxes in US. You and your husband will howefer need to report 1040 every year.
Each time you cross the border with GC, you will be asked 'where do you live'. Answering 'canada' even once, can and does get your GC pulled. The CBP is getting much more strict on this. Quite frankly, you were lucky last time. Get your citizenship.
NAFTA doesn't cover taxes. The tax treaty doesn't single out any profession (except for athletes and artists) for any special consideration.
Generally if the taxrate is higher in canada that US, you will noyt pay taxes in US. You and your husband will howefer need to report 1040 every year.
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