Canadian Citizen moving to US for Work - Taxes

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pnf382New Member
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Posts: 4
Joined: 20 Jul 2009

Canadian Citizen moving to US for Work - Taxes

Post Mon Jul 20, 2009 4:17 pm

Hello

If I take a job in the US as a Canadian citizen, what is the procedure with filing taxes? Am I paying taxes to both countries? Just one? How exactly does it work?

Also, what does my status become as a worker in the US? Are there restrictions on my ability/mobility (I.e. buying property or getting a drivers license?)

Further, do I lose access to the benefits I have in Canada? (primarily health care).

Thanks!
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StevenCanuckAbroad VIP
Posts: 3637
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Joined: 28 Sep 2007
Location: Calgary

Re: Canadian Citizen moving to US for Work - Taxes

Post Mon Jul 20, 2009 10:09 pm

These are pretty basic questions, do a search on the forum there are tons of threads on these subjects.

If you physically work in the US, you are subject to US withholding taxes, depending on your status you can file as resident or non-resident, if you file as non-resident you still file in Canada and claim a foreign tax credit, read: http://www.cra-arc.gc.ca/E/pub/tg/p151/README.html which explains very basically how to file as a non-resident, IRS publication 519 contains more information. There are also tax treaty rules which are badly explained in IRS publication 597.

You lose Canadian healthcare coverage if you move to the US, simple as that really. Even if you stay a resident taxpayer in Canada you can't use it in the same way as a resident, unless you essentially remain a resident of Canada, i.e. spend most of your time here and comply with the provincial rules.

Anyone can buy property in the US. Being able to enter the US and live in it is the trick.

There are all kinds of other restrictions, e.g. your SSN is restricted to authorized employment, your DL will be made co-terminus with your status in the US (in nearly all States, there are a few exceptions), etc.
Steve.
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