Remote worker with military connection

[simmshe]

Hi all,
I've been searching and searching and can't find information that applies directly to my situation. I find info that is almost right but then one point differs.

My husband is in the Canadian Navy. We're both Canadian citizens, have never lived outside Canada. I work from home for a Canadian company; my location is irrelevant to my work. There is a chance that my husband may receive a 4-year posting to the US. We would sell our home in Canada, with the plan for him to retire from service at the end of the posting and we move back to the area in Canada where we grew up.

What we're trying to figure out before this happens, what would this mean for me? My Canadian company would continue to pay me my Canadian salary into my Canadian bank account. How does that impact me for Canadian income tax? Do I file as if I still lived in the same Canadian province? Does American tax law play a factor at all, even though my employer is Canadian and I'm Canadian?

Looking for any gotchas/tips. Most spouses of others who accept this posting are stay-at-home mom's or take jobs in local businesses after they move so their situations are very different from my own. Anyone out there been in the same spot as me?

Thanks.

[agnelson]

The short answer is that (a) your husband will continue to pay tax in canada only, and (b) you will now report your income in both Canada and US, taking credit for the Cdn tax you pay on your US return.

Any more details can be asked at forums.serbinski.com.