Tax Implications - WHERE SHALL I LIVE?

[dmoore]

I will marry a Canadian citizen later this month and start the residency/green card processes in both countries. We haven't yet selected a country to live in due to our ignorance of the tax implications with both options. We will make our move in the spring.

We work for the same Canadian company, she in Canada and I am employed in the US. She will work from home continuing to be paid from the corporate office in Canadian funds. I, on the other hand, will continue to work and earn my income within the US.

Is there a tax benefit to residing on one side of the border or the other? Is there literature I can be directed to in order to read up on my situation?

ANY help with this request would be greatly appreciated.

Regards.

[nelsona]

Your decisions on where to live may come down to more what you are permitted to do (dpending on the stage of immigrtaion process you are in) rathe than what is best from a tax point of view,

I'd be intersted to know how yiou work for the Cdn company, as perhaps she might be able to do the same, while she lives in US during the critical 1st three months of your US immigration process.

You see, once she marries you she can not cross the boder, either from Canada to US, if you marry in Canada, of leave US if you marry there, if you intend to have he live with you in US.

If you were to immigrate to canad after marrige, you would not face such restrictions.

So, living in Canada until she gets her K visa, with you working and living there (or in US) may make most sense.

[dmoore]

If we live in Canada it will be in a border town as my location of work is fixed in northern Washington state and cannot be relocated. There are towns in southern BC that are close enough to commute daily from. We are thinking that southern BC is most likely due to the residency process in the US.

If I live in Canada full time and work in the US full time, I would expect there are several tax issues for me to contend with.

You mentioned her travel would be limited directly after we are married. Why is that? She will retain her Canadian citizenship and passport.

[nelsona]

This is a US immigration issue.

Once she begins the US immigration, there will be a period of time when she will either (a) not be allowed to enter US, or (b) if in US, not be able to leave and come back. Both periods would be between 3-6 months.