Dual Canada/US citizen issues

sajd · Post by **sajd** » Thu Jul 16, 2009 10:57 am

I am a Canadian/US dual citizen (born Canadian, naturalized in US). I left Canada in 1995 and have lived in the US ever since. There is a possibility that the company I work for now will go out of business by the end of 2009. I am looking at a job in Vancouver, BC with a Canadian business. Taxwise, is it better for me to continue to live in the US or to take up residence in Canada?...complication...I am married...My husband may not be able to join me for awhile. He may have to continue to live and work in the US...he too is a dual citizen. In the long run, it is not our intention to retire to Canada, but who knows? sajd

nelsona · Post by **nelsona** » Thu Jul 16, 2009 11:10 am

If you work in canada, the income form that employemnt is going to be taxed in canada (and that province) regardless of where you live. If you live in the US and work in canada, you could see yourself paying Cdn fed, cdn prov and US state tax (the US fed tax would probably be zero because of credits).

So if you live in a state that has income tax, you will be paying more than if you live in Canada. Plus, if your husband stays in US, you will likely be commuting back and forward as well, which will be an added cost, as would be mainatining a second residence.

So, figure this HUGE extra expense when considering the job offer. You would be better off all living and working in the same state/province.

sajd · Post by **sajd** » Thu Jul 16, 2009 11:31 am

Thanks for your reply...if I work in Vancouver, my state of residence would be Washington. I understand that Washington does not have a state income tax. I agree that it would be much better if the two of us could live and work in the same state/province. Unfortunately, we both have highly specialized jobs and it isn't easy for us to find 2 jobs in the same place. (We got lucky with the 2 jobs we have now.) We may be stuck with the expenses for travel and 2 separate residences anyway. I guess I could retire or find another career.

nelsona · Post by **nelsona** » Thu Jul 16, 2009 12:04 pm

Note that I didn't say not to work in canada, I merely said that the added expense, both tax and otherwise should be considered when looking at the offer.

Having your second home in WA would not be a bad idea, but this will not save you any income tax over living in Vancouver (unless you have a steady stream of other non-wage income) and you would be increasing your commute costs, which may be offset by lower housing costs.

By you living in Canada and your spouse not joining you, you are not necessarily exposing him to any Cdn tax, if that is a concern.