Tax Advice - Living in US & Working In Canada

bbradyc5 · Post by **bbradyc5** » Tue Jan 10, 2006 4:28 pm

My wife and I will be moving to the Detroit Area shortly as she has spnsored me for my GC. She already works in Detroit and is currently commuting. Once we move I will commute to Windsor to my current job. From what I understand, living in the US, and working in Canada is the worst of all the possible combinations in regards to taxation (ie living/working in US or living in Can/working in US). Is there anything that I can do myself or with my employers help (they are very flexible) that can help minimize my tax liability? I am an an automotive account manger. Any advice or help is greatly appreciated.

nelsona · Post by **nelsona** » Tue Jan 10, 2006 9:33 pm

Well, it the worst because you report ALL your income everywhere (except for capital gains reported only in US, once you leave) and will pay Cdn and ON tax, and then only be able to take credit for that tax against your IRS bill, not against your MI taxes. RRSPs would probably be of little tax benefit.

Also, your cost of living will go up, and your salary won't.

best advice I can give you is to find a half-decent job on the uS side (even a lower paying one will yield more income), that will allow you to partake of a 401(k).