Tax Situation (credit, how much, income)

[crl21]

I've tried surfing around the internet to figure this out, but it's so complicated that I haven't been able to come to a conclusion. I'm hoping someone can give me a general idea, so I can make an educated decision on a job offer.

I have a potential opportunity to move and work in Toronto. I'm a US citizen and married. I'll be making approx. 225-250K CAD. Could someone give me a general sense what my tax situation might look like? How much would I have to pay to Canada and how much to the US? I make a substantial contribution to my church (ten percent of my gross income) each year. How would this be treated by Canada? I would really appreciate any help on this. Any online resources you could point me to would also be helpful, but please don't send me to the IRS website. I've already tried looking there and it is beyond my ability to comprehend all the details in the publications. Thanks in advance.

[Cornerguy1]

The US is one of the few countries which assigns tax liability by citizenship rather than residency.

Roughly the first 85K you make will be exempt from US taxes. After that, the IRS wants its cut.

For Canadian income tax information and forms, visit the Canada Revenue Agency web site.

The IRS also offers a telephone (number on the IRS site) help line for International Tax liabilities which might be worth calling.

[MEfree30]

Originally Posted by Cornerguy1

The US is one of the few countries which assigns tax liability by citizenship rather than residency.

Roughly the first 85K you make will be exempt from US taxes. After that, the IRS wants its cut.

For Canadian income tax information and forms, visit the Canada Revenue Agency web site.

The IRS also offers a telephone (number on the IRS site) help line for International Tax liabilities which might be worth calling.

This is correct, but if you pay tax in Canada (which you will likely be required to), then I think it is very likely (but I am not 100% certain of tax treaty status) that you will get a credit for the tax paid in Canada with the IRS so that you may not have much of a US tax bill.

There is both Federal and State/Territory tax in Canada. The Canada Revenue site shows the rates pretty clearly so you should be able to estimate your Canadian tax bill.

[Cornerguy1]

I think it is very likely (but I am not 100% certain of tax treaty status) that you will get a credit for the tax paid in Canada with the IRS so that you may not have much of a US tax bill.

All the more reason to spend a couple of bucks and call the IRS International Tax people at 1-215-516-2000.

Always good to get the info directly from the horse's mouth.