Posted: Thu Jul 10, 2008 9:32 am-
jwatt10k wrote:
Is there any issue crossing the border to live with my wife?
Immigration BS apart, there's also the tax issue. US citizens have to file a US tax return forever (regardless of where they live), and when you die your estate may be subject to US estate tax (it's going to be abolished in 2010, but Obama wants to re-introduce it).
The foreign tax credit in the US for 2007 maxes out at $85,700, so assume that if your earnings are more than $86,000 you will be subject to dual-taxation on earnings over that amount. I'm not sure what the exemption is for married couples.
There's a Bill in Congress to repeal the limit on the foreign tax credit (it was introduced in 2006) but I'm not sure what's happening with it at the moment.
Even if you both renounce US citizenship, there is an "expatriation" tax on US-source income, but it only takes effect at pretty high income levels. If your job is in Canada it's unlikely you would be affected by it. But you still have to file a US tax return for ten years, even then.
_________________
Steve.