first year in Canada tax question

grte8888 · Post by **grte8888** » Sun Sep 08, 2013 10:05 am

I am a dual citizen and 2013 will be my first full year of residence in Canada. I a self employed in the entertainment industry, but more than half of my income is from a US source. I perform that work in the US and payroll taxes as well as fica and California are taken out of each check. I will have only spent a total of 85 days in California doing this work over the course of the year. I will also have some 1099's from the US as well as the equivalent in Canada. I would love some advice and direction on how to proceed. Will canada give me a tax exemption on the US taxes (Fed and State)? If I understand correctly I should just owe the difference to canada, but not sure about the state and provincial level. Also, what kind of personal deductions am I eligible for in Canada (travel etc)
Thank you

nelsona · Post by **nelsona** » Sun Sep 08, 2013 5:13 pm

You need to file cali tax on your cali income, and IRS and Cdn tax retirns on ALL your income.

You have an arrival date in canada, which starts the tax clock on your US income, so it is not normally jan 01 of any year.

Canada will give you credit on the IRS and Cali tax on yoru Cali income, but nothing else. The IRS will give you creit for Cdn tax on your Cdn income.

grte8888 · Post by **grte8888** » Mon Sep 09, 2013 9:31 am

Thank you for the reply.

To clarify, We moved in 2012, so 2013 is full CDN residence.

I just travel back to Cali for a good portion of my work - 85 days this year.

nelsona · Post by **nelsona** » Mon Sep 09, 2013 10:32 am

OK, so you took care of 2012 taxes? In 2013, my answer stands, except that it applies to the whole year.