I am Canadian and recently start working in US on TN-visa.
I know that 401k and IRA account are tax shields for tax in US, but are they tax shield for income I need to report to Revenue Canada.
Let's consider a simple example:
Annual income in US: $80,000
401k: $10,000
IRA: $5,000
Question:
1. In this case, do I report my earning in US as 80,000 USD or 65,000 USD to Revenue Canada?
2. Since Canadian income tax is higher, can I also contribute to RRSP in Canada to reduce my income tax to Canada?
3. When I report my income in US, what exchange rate will they use?
Do they use year end exchange rate or the exchange when I file my income tax to Revenue Canada? Or some other exchange rate?
Thank you very much.



