Questions for fellow Americans who are working in Canada and paying taxes to both countries (get credit)

[Further North]

Hi everyone,

With any luck, tomorrow I will be making arrangements to fly out to Toronto fairly soon and get a job offer from a company there. I can live with the currency exchange rate issue to a degree, as most of my money WILL be spent in Canada (rent, utilities, food, gas, etc.) What concerns me though is what I will be paying in taxes.

I've made a few attempts at reading the U.S. Gov. IRS site to try and understand how it works, but within 5 mins. my eyeballs roll backward into my head and I want to go crazy! So far I've summarized this:

- I will be given a tax credit on my U.S. Taxes for what I pay in Canadian taxes.

- Accordingly, I could pay my U.S. taxes on an extended deadline once my Canadian taxes are completed so this credit is reflected accurately when I file US taxes.

What I still have questions on is:

- Is there any tax break on U.S. Taxes because I'm not using all services in the U.S.? i.e., "the paving of roads, the education system, etc."?

- Do I get any "tax breaks" for services I am not eligible for? Ex. lower CA tax rate because as a non-citizen I could not receive welfare?

- Will I still be paying into U.S. Social Security and Medicare taxes while I am in CA as a Permanent Resident? I'd like to know if I will get credit for Soc. Security at least!

- If I am paying into Soc. Security and Medicare, will my employer collect it from me and submit it to the U.S. Gov?

Finally, if ANYONE is a U.S. Citizen working in Windsor or Toronto please IM me your accountant's info! I'd really like to speak to a knowledgeable accountant before I take the offer so I can see what all will be involved. I'm optimistic that I will be made a fair offer, but I'm 3 years out of college not a seasoned veteran in my field, so I get the feeling that I'll need to keep close tabs on how much taxes will effect me.

[michelle38]

It's been a year since you've posted. How's it going? I'm an American looking into working in Canada. The US govt isn't real helpful. They want our $.

My investigations with working in Canada & US taxes say that if you live/work in Canada you get an $84,700/annual US tax break, plus moving expenses of $6000 that can be amortized over 2 years.

Yes, you will be taxed in the US, it's called a world tax. You'll also be paying taxes in Canada to cover Canadian infrastructure (and your health care here), and will get a break for paying taxes here on your US taxes in the form of either a tax credit or a tax break.

If you've found an accountant who understands both Canadian & American taxes, and how to sort them out, please pass on their info to me.

Thanks much & good luck,

Michelle