Dual Citizenship, Dual Taxation?
Moderator: Mark T Serbinski CA CPA
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Dual Citizenship, Dual Taxation?
If I have dual citizenship and live mostly in the USA, do I have to pay taxes to the Canadian government? How about vice versa?
US tax on US person, and US citizen is always US person no matter where he/she lives.
Canada tax on residents. So you only pay US tax if you live in US.
Vice Versa, is a totally different story. If you live in Canada because you are US citizen, you have to file US return (may not pay any tax at all), also you have to file all related form as if you lived in US.
Canada tax on residents. So you only pay US tax if you live in US.
Vice Versa, is a totally different story. If you live in Canada because you are US citizen, you have to file US return (may not pay any tax at all), also you have to file all related form as if you lived in US.
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If you live in US, you are only liable for tax on Cdn-source income, at most, regardless of citizenship. Some income, like Cdn bank interest, is not taxed at all, some is flat taxed with no return filed. Some requires the filing of a return and calculation of tax -- all credited on your US tax return.
It is US citizens that are taxed on ALL sources of income regardless of residence, but they avail themselves of various deductions, credits an exemptions (especially the foreign tax credit and the foreign earned income exemption) which in the vast majority of cases wipes out any US tax liability for Cdn residents.
It is US citizens that are taxed on ALL sources of income regardless of residence, but they avail themselves of various deductions, credits an exemptions (especially the foreign tax credit and the foreign earned income exemption) which in the vast majority of cases wipes out any US tax liability for Cdn residents.
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
And in truth gargoyle, it is the reverse of your statement:
Paying the tax (or not) is the easy part. OFten the reporting is the nightmare, as tsanaha will attest.
Paying the tax (or not) is the easy part. OFten the reporting is the nightmare, as tsanaha will attest.
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
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- Posts: 7
- Joined: Tue Oct 25, 2011 2:08 pm
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- Posts: 7
- Joined: Tue Oct 25, 2011 2:08 pm