Dual Citizen Tax Question - Living in Canada, Work in US

[Snowdream]

Hi everyone,

I'm sure this has been answered, but I'm currently a dual citizen living in America. I am interviewing with an American company who will allow me to work remote 5 days a week with no need to make an appearance at any office.

The current position I'm in is also 'remote' but it's client facing, so I'm in the field 80% of the time for my territory, bleh.

Anyways, because this is a true 'work from home' job, I want to move back to Toronto. I'm just concerned how taxes will work - will I need to pay US and CAD taxes? I'm also sure that I'd be eligible for OHIP, correct?

I've already lived abroad before, so I'm aware that I'd need to pay / file American taxes. It's now that I'm living in Canada, but remotely working for an American company that seems a bit tricky.

 

[scylla]

Hi everyone,

I'm sure this has been answered, but I'm currently a dual citizen living in America. I am interviewing with an American company who will allow me to work remote 5 days a week with no need to make an appearance at any office.

The current position I'm in is also 'remote' but it's client facing, so I'm in the field 80% of the time for my territory, bleh.

Anyways, because this is a true 'work from home' job, I want to move back to Toronto. I'm just concerned how taxes will work - will I need to pay US and CAD taxes? I'm also sure that I'd be eligible for OHIP, correct?

I've already lived abroad before, so I'm aware that I'd need to pay / file American taxes. It's now that I'm living in Canada, but remotely working for an American company that seems a bit tricky.

Yes - you would need to file Canadian taxes. Yes - you'll qualify for OHIP once you've returned to Canada and lived here for three months.

 

[canuck78]

You would also need to be in Ontario for the first 5 out of 6 months and 6 months out of 13 months. You mention being in the field so not sure how much time you will be spending in Ontario or Canada. You should read the residency requirements. I would encourage you to get an accountant the specializes in cross-border taxes. As a US citizen you need to file US taxes no matter where you are in the world. If you are living in Toronto your employer can pay you in US dollars and send it to your US fund Canadian account. Best to get an accountant involved.

 

[Snowdream]

Yes - you would need to file Canadian taxes. Yes - you'll qualify for OHIP once you've returned to Canada and lived here for three months.

So I would be double-taxed? Or would I just be filing in one, but taxed in another - hmm, guess I do need an accountant.

 

[keesio]

So I would be double-taxed? Or would I just be filing in one, but taxed in another - hmm, guess I do need an accountant.

Typically, no. There is a tax treaty between the US and Canada to avoid double taxation. You get credit for taxes paid to one country that can be used to offset the taxes owed to the other. The thing I am uncertain of in your case is which country gets first dibs. My guess is the US since it is US sourced income.

In any case, it is complicated and I strongly recommend finding an accountant that specializes in crossborder taxation. It won't be cheap but it is worth it.

 

[PMM]

Hi

Typically, no. There is a tax treaty between the US and Canada to avoid double taxation. You get credit for taxes paid to one country that can be used to offset the taxes owed to the other. The thing I am uncertain of in your case is which country gets first dibs. My guess is the US since it is US sourced income.

In any case, it is complicated and I strongly recommend finding an accountant that specializes in crossborder taxation. It won't be cheap but it is worth it.

1. Ensure that the accountant is versed in savings accts in Canada, especially RRSPs, as the contributions are not tax deductible in the US>