www.centa.com
Hello!
This is a great site for reference! I have a quick
question regarding Dual Citizenship and working
abroad.
I hold dual citizenship (Canada and U.S.) and
currently reside in Canada and would like to work in
the U.S.
1. For tax purposes, would it better for me to
go to the U.S. as a "consultant" (and pay taxes on my
own) or become an "employee" of the company I plan to
join (and have them deal with the taxes)? I do not
plan to live in the U.S. for more than one year.
2. Would any of this impact my citizenship in either country?
3. Should I become a "resident" of the U.S. for the year I am there? I am
very confused!
Thank you for your time!
GGGGGGG
================================
david ingrtam replies:
1. If the company you are working for hires you as an employee they have
to pay half of the approximately 16% social security taxes. That amounts to
$4,000 you do NOT have to pay if you are self-employed. depending upon the
terms, being self employed might be a little better for tax buyt likely will
cost you more in social security if the company is paying all expenses.
2. This situation does NOT impact your citizenships.
3. Whether you are a resident of either country will depend upon Article
IV of the US Canada Tax treaty. You can find out more about this at
www.centa.com, click on US/Canada taxation.
I hope that you have been filing your US tax returns all along. A US
citizen living in Canada has to file a US tax return every year they are
here even if all their money comes from Canada. In fact, there is MORE onus
or responsibility to file the US return than there is to file the Canadian
return if tax was deducted at source in Canada.
Read that link above on US / Canada taxation for more information and note
the big penalties for failing to file your US forms TDF-90 and 3520 and
3520A for your Canadian RRSP and other accounts referred to in the previous
Q & A
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 913-9133 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or
consultation and is to be regarded only as general comment. Nothing in
this message is or should be construed as advice in any particular
circumstances. No contract exists between the reader and the author and any
and all non-contractual duties are expressly denied. All readers should
obtain formal advice from a competent and appropriately qualified legal
practitioner or tax specialist in connection with personal or business
affairs such as at www.centa.com. If you forward this message, this
disclaimer must be included."
Be ALERT, the world needs more "lerts"
What's Related