QUESTION:
Hello,
I appreciate your service, very much.
My wife and I are US citizens, living in Bellingham,
WA. We intend to seek PR in BC.
My intention is to live in a town along the border. I
will commute to work in Bellingham. My wife is a
homemaker.
Would you please advise as to how my working in the US
will impact my PR application?
Based on what I have read on your web site, I assume my
US income will be taxable in Canada, and that I should
request my US company to not deduct US taxes. I
understand the tax treaty will prevent double taxation.
True?
Thank you and kind regards,
M XXXXXXX
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david ingram replies:
I am back to having a couple of hundred questions again
and cannot even begin to answer more than four or five
a day unless they are from existing clients - however
this one is of general interest I think and I will
answer it.
To qualify for Permanent Resident Status, You OR your
wife must achieve a point count of 67 using Canada's
self-assessing system.
You can find the test at:
http://www.cic.gc.ca/english/skilled/assess/index.html
This is the self-assessment test for an individual to
determine his or her eligibility to immigrate to Canada
without being sponsored by a spouse.
Please note that having an arranged job in Canada is
worth a total of 15 points towards this goal.
When you are here, and working in the US, your US
employer will make the same deductions he or she would
make if you living over top of the store.
You will file a US 1040 Joint tax return and pay the
same taxes to the US that you would pay if you lived in
Mount Vernon or Olympia.
You will then convert the income to Canadian dollars
and file a Canadian T1 General tax return.
Unfortunately, Canada does NOT have a joint tax return
and you are taxable on all the income at a single rate.
I GUARANTEE you will NOT be happy with the result.
You can then claim the tax, social security and
Medicare paid to the US as a foreign tax credit on
Schedule 1 of your Canadian return.
Assuming that you are working for the same employer at
the rate you are now, you should hire us to do a
pro-forma return for you so that you know what the tax
hit will be before making the move.
Answers to this and other similar questions can be
obtained free on Air every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred
Snyder of Dundee Wealth Management and I, David Ingram
will be hosting an INFOMERCIAL but LIVE talk show
called "ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to
listen on the internet at
www.600AM.com
Local calls are taken at (604) 280-0600 and Long
Distance calls are taken at 1( 866) 778-0600
I do not know how far the LD line reaches.
=========================================
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North Vancouver, BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
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