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Canadians working in the U.S. and Obtaining a TN VisaBy Glenn LethamWhat about Income Tax As a Canadian citizen living and working in the U.S., you will likely be faced with the fact that you will need to file income tax forms in both countries. This is an entirely separate matter from immigration dealings and is very complex as well. Once again, the advice listed here is merely that...personal advice. If you want to be able to sleep at night I suggest you hire an accountant, one that specializes in Canada/U.S tax laws. This might be tricky depending on where you live. Here's what I know. Everything will come down to one big question; In the eyes of Canadian income tax laws are you a resident or not? Fairly simple eh? In order to be deemed a non-resident Canadian (and thus, not have to pay tax on your foreign income) you will need to sever all your economic and social ties to Canada. Generally this involves giving up your place of residence, immediate family must accompany you, no credit cards, no memberships in health clubs etc... Say good bye to all of these things until you return from the U.S. If you own property don't stress out, you needn't sell it. However, you will need to appoint an agent and you will need to file what's know in Canada as an NR6 undertaking. This is done in order to keep tabs on rental income and foreign held property. You are required to file U.S. income tax returns for all income earned in the United States. Do keep in mind that there are tax treaties betwen Canada and the US that prevent double taxation, through income exemptions and tax credits. So even if you 'owe' taxes to both countries, your actual taxes payable may be nil to one or the other country, depending on income level and other factors. Generally the primary questions that determine if your worldwide income is taxable by Canada are: what status do you have in the foreign country (e.g. are you a US PR or are you on a temporary visa?), and whether you can be somehow deemed a resident of Canada or otherwise liable for Canadian taxes on that income. Don't forget, taxes are due earlier in the U.S. Usually on April 15th. as opposed to April 30th. in Canada. Other things To Consider
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