My wife and I are US Citizen's and work for the same Fortune 500
Company. I am taking a position within the company at a location
in Oakville, Ontario. I am not taking the position as an
expatriate, as I will be paid in Canadian Dollars, etc. My wife
will continue to work from the same company location in the
U.S., but out of our home in Canada. What type of tax concerns
does this represent for us? Also, what type of special
arrangements if any should my wife make wife her current employer
if she is now going to work out of Canada? \r
------------------------------------------------------
david ingram replies:
You will be on a Canadian payroll with EI, CPP and Income tax
deducted. You will file a Canadian return and usually get a
refund if you do not have any investment income.
Your wife should arrange to be paid on a 1099-MISC basis because
she does not pay US FICA (social security) if living in Canada.
Also, she is not living in North
Dakota or Oklahoma either so there is no state tax to pay. Her
first tax liability will be to Canada because that is where she
is living and working.
Because you are both US citizens, you will then file a US return
and report your income again and either exempt up to $80,000 each
by filing a form 2555 each (find it at www.irs.gov or if you have
children, you might want to claim a foreign tax credit instead by
filing form 1116.
You can find out more by going to www.centa.com and reading the
US/CANADA TAXATION section in the second box down on the right
hand side.
When you are ready to do the first year's returns, send them off
to us.
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa
Specialists
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Disclaimer: This question has been answered without detailed
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comment. Nothing in this message is or should be construed as
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