Moving back to Canada?!

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thirty2nineNew Member
Topic author
Posts: 1
Joined: 14 Jun 2009

Moving back to Canada?!

Post Sun Jun 14, 2009 6:32 pm

I am a dual (US-Canadian) citizen thinking of moving back to TO for family reasons. I live in LA and it seems salaries are much lower in GTA but not cost of living or taxes. Is this impression correct?

Also, can someone give me a contact info for a tax preparer that can do both Canadian and American taxes? I was told by the IRS that being a citizen I have to file taxes in the US regardless of where I live. I am assuming I will need to file in Canada as well after I move back.

Thanks for the help!
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StevenCanuckAbroad VIP
Posts: 3637
Topics: 2
Joined: 28 Sep 2007
Location: Calgary

Re: Moving back to Canada?!

Post Mon Jun 15, 2009 9:47 am

The tax thing is relatively straightforward if you're directly employed by someone in Canada. You just file T1 like anyone else does, on the US end you file a 1040 every year and declare your income on Form 2555-EZ. You only need to start sweating if your income is over the foreign exclusion limit and you need to file the full Form 2555 and possibly pay some tax in the US, but that doesn't happen until you're closing in on $100,000 worth of income.

Cost of living is hard to compare but yes, I get the same impression as you did. Gas is more expensive, there is PST as well, income taxes are higher and so on, although California isn't known for it's low taxes either.

Move out west. :p

Easier to get here from LA as well with your stuff.
Steve.
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