Canadian tax laws - GoFuckYourself.com

MetaMan · 03-12-2003, 02:37 AM

i have seen this topic mentioned before but im not sure if it has been fully discussed,

this is to all who have residence in canada + main citizenship here and make funds in the usa,

basic story is, my lawyer says there is no way around paying taxes on the income that i earn through the usa when i am in the usa and have residence in canada,

the government also says i owe them, thus i am stuck paying usa and canadian taxes,

is this right or is there anyway around not having to pay canadian taxes considering all my funds are made in the usa while i am working there but have residence in canada?

WiredGuy · 03-12-2003, 02:42 AM

Did you work in the USA (as in your location while working was in the USA)?

If not, then you just report it as foreign income when doing your taxes.

If you were working in the states (physically), then you pay the IRS for that work.

WG

MetaMan · 03-12-2003, 02:44 AM

Quote:

Originally posted by WiredGuy
Did you work in the USA (as in your location while working was in the USA)?

If not, then you just report it as foreign income when doing your taxes.

If you were working in the states (physically), then you pay the IRS for that work.

WG

situation is more of summary:

im a canadian citizen,
i own a residence in canada,
i work in the usa and rent an apartment,
all my income is made in the usa

and the canadian govt makes me pay income tax

to add i pay the IRS in canada and the usa, so i pay double income tax

m0rph3us · 03-12-2003, 02:47 AM

Quote:

Originally posted by MetaMan

situation is more of summary:

im a canadian citizen,
i own a residence in canada,
i work in the usa and rent an apartment,
all my income is made in the usa

and the canadian govt makes me pay income tax

to add i pay the IRS in canada and the usa, so i pay double income tax

short version: yes.

There was a report on TV a while back about people who do this.
People who actually plan to move to the US and have residency there will pay double tax for two years after which they will stop paying to the CCRA and only pay the IRS.

WiredGuy · 03-12-2003, 02:47 AM

Interesting, well there's something that's a bit difficult to figure out here. You own a residence in Canada and you rent in the USA and you say you live in Canada. Do you own a corporation in the states where the american income is earned or do you cash it in Canada.

If you cash those checks in Canada, then it seems to me that it should be claimed as foreign income to RevCanada. If you have a corporation cashing those checks in the states, then IRS collects on those earnings. What's the relationship between the entity cashing the checks in the states and yourself?

WG

x582 · 03-12-2003, 02:54 AM

Have fun

http://www.ccra-adrc.gc.ca/E/pub/tg/t4058/t4058-02e.pdf

Why · 03-12-2003, 04:05 AM

your not an american citizen? id tell the IRS to get bent! worst they can do is deport you back to the great .CA

Polak · 03-12-2003, 05:19 AM

me from surrey

Apollo · 03-12-2003, 06:32 AM

I'm pretty certain if you reside in Canada and paying US taxes on some of your income, you can get fill out a form and have the income you paid taxes on not considered part of your gross income when filling out your Canadian taxes...there might be a limit, you might only be able to claim a percentage...I'm not certain...that's what my accountant and tax lawyer is for =) But I'm pretty sure I addressed this question to them once before and got a response on how to properly have the income reported to avoid as much double taxation as possible

FlyingIguana · 03-12-2003, 07:11 AM

Quote:

Originally posted by MetaMan

situation is more of summary:

im a canadian citizen,
i own a residence in canada,
i work in the usa and rent an apartment,
all my income is made in the usa

and the canadian govt makes me pay income tax

to add i pay the IRS in canada and the usa, so i pay double income tax

if you live in canada 6 months out of the year then you pay taxes here. as far as i know if you live here less than 6 months you don't pay taxes in canada even if you're a canadian citizen.

FlyingIguana · 03-12-2003, 07:15 AM

Quote:

Originally posted by x582
Have fun

http://www.ccra-adrc.gc.ca/E/pub/tg/t4058/t4058-02e.pdf

so its actually 6 months of 'residential ties'? interesting

Monk · 03-12-2003, 08:05 AM

Firstly, there is a tax treaty between Canada and the US, so you will not be double taxed. You pay taxes in whichever country you are determined to be a 'resident' of for tax purposes.

If you are determined to be a Canadian resident and taxes are withheld at source by your US employer, you can file a form with the IRS to get that money back.... then file a Canadian tax return to pay taxes on your total world income. If you are determined to be a US resident, you can just file the US tax return.

Resident and citizen are not the same thing and you could be determined to be a resident of the US, while being a citizen of Canada... in some cases.

If you are a Canadian citizen who moves to the US, they will determine if you have cut your residential ties with Canada. They look at things like whether you still have a home or other property in Canada... whether your intention is to be gone from Canada for more than 2 years... whether your wife/children remained behind in Canada...etc. There are a bunch of criteria that might apply in your specific case. For example, if you lease your home to a non-related party, that may get you out of that clause.

The 6 month thing somebody mentioned is probably referring to the 183 day rule. This basically says that if you weren't determined to be a resident in Canada by all the rule above, then you could still be a resident if you are in Canada for 183 days or more in the year.

You should talk to a professional accountant to determine what you should do in your specific circumstances.... these are just general rules that I hae mentioned.

MetaMan · 03-12-2003, 12:59 PM

Quote:

Originally posted by Monk
Firstly, there is a tax treaty between Canada and the US, so you will not be double taxed. You pay taxes in whichever country you are determined to be a 'resident' of for tax purposes.

If you are determined to be a Canadian resident and taxes are withheld at source by your US employer, you can file a form with the IRS to get that money back.... then file a Canadian tax return to pay taxes on your total world income. If you are determined to be a US resident, you can just file the US tax return.

Resident and citizen are not the same thing and you could be determined to be a resident of the US, while being a citizen of Canada... in some cases.

If you are a Canadian citizen who moves to the US, they will determine if you have cut your residential ties with Canada. They look at things like whether you still have a home or other property in Canada... whether your intention is to be gone from Canada for more than 2 years... whether your wife/children remained behind in Canada...etc. There are a bunch of criteria that might apply in your specific case. For example, if you lease your home to a non-related party, that may get you out of that clause.

The 6 month thing somebody mentioned is probably referring to the 183 day rule. This basically says that if you weren't determined to be a resident in Canada by all the rule above, then you could still be a resident if you are in Canada for 183 days or more in the year.

You should talk to a professional accountant to determine what you should do in your specific circumstances.... these are just general rules that I hae mentioned.

good info,
its hard to exactly explain my situation,

but i have family in canada and they live at my residence in alberta,

i work in tuscon and have been for years now, and am out of canada well beyon 6 months at a time,

i lease an apartment in the usa,

ill be going to see an accountant very soon, double tax can be a killer

03-12-2003, 02:37 AM	#1
MetaMan I AM WEB 2.0 Industry Role: Join Date: Jan 2003 Posts: 28,682	Canadian tax laws i have seen this topic mentioned before but im not sure if it has been fully discussed, this is to all who have residence in canada + main citizenship here and make funds in the usa, basic story is, my lawyer says there is no way around paying taxes on the income that i earn through the usa when i am in the usa and have residence in canada, the government also says i owe them, thus i am stuck paying usa and canadian taxes, is this right or is there anyway around not having to pay canadian taxes considering all my funds are made in the usa while i am working there but have residence in canada?

03-12-2003, 02:42 AM	#2
WiredGuy Pounding Googlebot Industry Role: Join Date: Aug 2002 Location: Canada Posts: 34,482	Did you work in the USA (as in your location while working was in the USA)? If not, then you just report it as foreign income when doing your taxes. If you were working in the states (physically), then you pay the IRS for that work. WG __________________ I play with Google.

03-12-2003, 02:47 AM	#5
WiredGuy Pounding Googlebot Industry Role: Join Date: Aug 2002 Location: Canada Posts: 34,482	Interesting, well there's something that's a bit difficult to figure out here. You own a residence in Canada and you rent in the USA and you say you live in Canada. Do you own a corporation in the states where the american income is earned or do you cash it in Canada. If you cash those checks in Canada, then it seems to me that it should be claimed as foreign income to RevCanada. If you have a corporation cashing those checks in the states, then IRS collects on those earnings. What's the relationship between the entity cashing the checks in the states and yourself? WG __________________ I play with Google.

03-12-2003, 06:32 AM	#9
Apollo Confirmed User Join Date: Sep 2002 Location: Canada Posts: 433	I'm pretty certain if you reside in Canada and paying US taxes on some of your income, you can get fill out a form and have the income you paid taxes on not considered part of your gross income when filling out your Canadian taxes...there might be a limit, you might only be able to claim a percentage...I'm not certain...that's what my accountant and tax lawyer is for =) But I'm pretty sure I addressed this question to them once before and got a response on how to properly have the income reported to avoid as much double taxation as possible __________________ ----------- Free automated way to rotate sponsor gallery thumbnails on your sites TgpWizards - Free TGP Gallery submission system

03-12-2003, 02:54 AM	#6
x582 Confirmed User Join Date: Mar 2002 Location: heh? Posts: 609	Have fun http://www.ccra-adrc.gc.ca/E/pub/tg/t4058/t4058-02e.pdf

03-12-2003, 04:05 AM	#7
Why MFBA Industry Role: Join Date: Mar 2003 Location: PNW Posts: 7,230	your not an american citizen? id tell the IRS to get bent! worst they can do is deport you back to the great .CA

03-12-2003, 05:19 AM	#8
Polak Confirmed User Join Date: Jan 2003 Posts: 620	me from surrey

03-12-2003, 08:05 AM	#12
Monk Confirmed User Join Date: Jan 2003 Location: Canada Posts: 631	Firstly, there is a tax treaty between Canada and the US, so you will not be double taxed. You pay taxes in whichever country you are determined to be a 'resident' of for tax purposes. If you are determined to be a Canadian resident and taxes are withheld at source by your US employer, you can file a form with the IRS to get that money back.... then file a Canadian tax return to pay taxes on your total world income. If you are determined to be a US resident, you can just file the US tax return. Resident and citizen are not the same thing and you could be determined to be a resident of the US, while being a citizen of Canada... in some cases. If you are a Canadian citizen who moves to the US, they will determine if you have cut your residential ties with Canada. They look at things like whether you still have a home or other property in Canada... whether your intention is to be gone from Canada for more than 2 years... whether your wife/children remained behind in Canada...etc. There are a bunch of criteria that might apply in your specific case. For example, if you lease your home to a non-related party, that may get you out of that clause. The 6 month thing somebody mentioned is probably referring to the 183 day rule. This basically says that if you weren't determined to be a resident in Canada by all the rule above, then you could still be a resident if you are in Canada for 183 days or more in the year. You should talk to a professional accountant to determine what you should do in your specific circumstances.... these are just general rules that I hae mentioned.