double-taxation

I am a Canadian citizen, and am a graduate student studying in the US on a J-1 status. I earn money in both Canada and America. I know that I must file taxes in the US for all US income. I also know that since I am still considered a Canadian resident, I must pay taxes in Canada on all my income, both in the US and Canada.
I don't know much about tax treaties. I know that in the US I am NOT eligible. So how does it work in Canada? Am I going to be double-taxed on my American income - once in the US and once in Canada?

I assume that I will receive some sort of tax credit in Canada for the money that I spent paying taxes in the US. But how much? Is it just a credit in the sense that I don't pay tax on the money I actually spent paying tax (like when one gives charity - they don't pay tax on the money they actually spent on charity), or will the credit basically mean that I am effectively not taxed in Canada on my American earnings (or perhaps just taxed a little)?

Moreover, eventually I will have been in the US long enough for them to consider me a resident alien of my state, and then I will have to pay tax on my worldwide in the US as well! So I'll basically be paying taxes on my worldwide income in two different countries. That's a lot of tax! Is that the way it is?

Thank you!

you will get creditr for the tax you pay in US. Once you qualify for tax residency in US, then you will no longer be considered tax resident of canada.


please follow up with me at forums.serbinski.com

AGN, Are you saying that as soon as one becomes a US resident alien they automatically lose their Canadian residency? Can they keep their Canadian residency anyway? How is it decided whether they qualify for tax residency in the US: by the state (e.g. PA) or by the country (USA)?

How is it decided whether they qualify for tax residency in the US: by the state (e.g. PA) or by the country (USA)?

At the national level the country (eg USA) or the USA-Canada tax treaty decides whether you are a USA tax resident as opposed to, say, a Canadian tax resident.

At the state level the state's laws (eg PA) might play a role in determining whether you are a resident of PA or, say, IL if you have financial dealings in both states.

As AGN says direct followups to serbinski.com.