Crossing To And From Canada

@ not4hire Thanks for the answers!

If you live in Canada and pay taxes in Canada you still have to file a U.S. tax return even though it is $0 dollars as an American citizen. This is my understanding, please check with tax advisor. Also social security or pension Canada passes between country's when you retire.

If you live in Canada and pay taxes in Canada you still have to file a U.S. tax return even though it is $0 dollars as an American citizen. This is my understanding, please check with tax advisor. Also social security or pension Canada passes between country's when you retire.

A US citizen is taxed on all income earned, even if it is earned in a foreign country, and they pay taxes in that foreign country. That said, the first (I'll have to check when I do my return this weekend) $90,000 of taxable income is excluded from taxation by the IRS. That means you'd have to make over $120,000 CDN before you'd have to pay taxes in the USA, assuming all your income is from your Canadian job.

Thanks for the reply, do you have dual citizenship?

Thanks

I am currently a permanent resident- In about a month I plan on being both

"I am currently a permanent resident- In about a month I plan on being both"

I hope you started a couple of years ago with your application for citizenship and your month quote is when your ceremony is being held.

I just finished mine and it took a good two years and some decent coin to get it done.

@Michael S. Do you have both citizenships, or American working in Canada? Thanks.

@Kat H. Congratulations, and also Jan P.

I am a dual citizen; but that said, that still makes me an American working in Canada with regards the IRS. They Want your money if 1) you are a citizen and earn any anywhere, or 2) are not a citizen and earn it in the USA.

With regards to #2, that doesn't mean the IRS wants a portion of your earnings if you take a business trip to the USA, but if you are a permanent resident, or a tourist that wins a game of chance - think Canadian winning a Powerball or Casino jackpot.

The IRS also wants you to file a report of your financial accounts in foreign countries. Every year I must report my Canadian holdings - savings account, etc. If you're Canadian NOT becoming a US citizen is a good idea barring any real need to be one. What's a real need? You are a permanent resident and don't intend to return. That was my idea, then my kids wanted to come to Canada for school, and whoops I'm back. It's a regulatory burden earning outside the USA with foreign bank accounts.

Thanks for the explination. I was lead to belive that a dual citizen living in Canada and working solely in Canada only had to file a U.S. return with zero income on it and would not be taxed by the IRS on their Canadian income.

A case for a good internation tax accountant.

Thanks for the explination. I was lead to belive that a dual citizen living in Canada and working solely in Canada only had to file a U.S. return with zero income on it and would not be taxed by the IRS on their Canadian income.

A case for a good internation tax accountant.

You will be taxed on any income in excess of $90,000 (or a bit more). You will have to file a return with the IRS even if your income is less than the threshold just to state that it is.