How Canadians Get Taxed?

perkyj
CanuckAbroad Regular


CDN in Illinois

Joined: 21 Mar 2008
Posts: 73
Location: Illinois

Posted: Sat Apr 26, 2008 1:03 pm

 

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What do you mean by this?.

"if you move your tax home to the US it is a very messy business to move it back to Canada later on"

If even the spouse moves back to Canada, and maintains a home there, doesn't that take care of becoming resident in Canada for tax purposes?

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perkyj
CanuckAbroad Regular


CDN in Illinois

Joined: 21 Mar 2008
Posts: 73
Location: Illinois

Posted: Sat Apr 26, 2008 4:01 pm

 

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I'm reminded of a question about FICA taxes. I understand that all FICA are added into the 'foreign tax credit' as tax withheld when doing Canadian income taxes, under the assumption that the person, as a temporary worker, will not reasonably be able to benefit from the tax at any time in the future. My question is.

If you deduct the FICA taxes in good faith, for many years, and at some point you actually become eligible for Social Security benefits, what happens with regards to the FICA tax deductions you took in the past? Also, do you just stop claiming the FICA credit at that point for future years? Someone on a TN for parts of each of 10 years will then have enough points to collect Social Security, so in essence they are not longer elible for the FICA deduction. Does anyone have experience with this?

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