QUESTION: Hello! I am a US resedent,and I am trying to decide if I should
accept a job offer in canada.The job is offering about 150,00 anually but I
can't seem to find a clear answer about the tax laws concerning my
situation.
The offer is that I work for two weeks in canada and then come back to the
US for a week. So I'm not looking for permanat residence in canada, just a
long commute I guess. I want to know if I'll be paying taxes to the US
goverment or to the Canadian goverment (which if I'm correct it 48% for a
non resident)
Depending on the amount of money I get to take home after commuting
expenses and taxes I'm trying to figure out if this job is worth it.
please help?
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david ingram replies:
Assumption: You are a single man or a married man with a spouse who has her
own income over $6,000 per year
In 2005, the rate in BC would be $49,213,50 income tax, $760.50 for EI
(employment insurance) and $1,861.20.
As a US citizen, you are taxable on your world income as well.
You can claim the tax paid to Canada as a foreign tax credit on your US
return by filling in form 1116.
If you have a state return to fill out, the calculations are a little more
complicated but in general, you will NOT pay double taxation. You WILL pay
the tax rate for the highest taxed jurisdiction that can tax you.
If you want something more specific, i.e proforma tax returns for your
specific case, I would charge in the $400 Canadian range in January and
$800 February on.
Phone consultations are $400 for 15 minutes to 50 minutes (professional
hour). Please note that GST is added if product remains in Canada or a phone
consultation is in Canada.
This is not intended to be definitive but in general I am quoting $800 to
$2,400 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two interest slips and you
lived in one country only - no self employment or rentals or capital gains -
you did not move into or out of the country in this year.
$1,000 would be the same with one rental
$1,200 would be the same with one business no rental
$1,200 would be the minimum with a move in or out of the country. These are
complicated because of the back and forth foreign tax credits. - The IRS
says a foreign tax credit takes 1 hour and 53 minutes.
$1,500 would be the minimum with a rental or two in the country you do not
live in or a rental and a business and foreign tax credits no move in or
out
$2,400 would be all of the above and you moved in and out of the country.
This is just a guideline for US / Canadian returns
We will still prepare Canadian only (lives in Canada, no US connection
period) with two or three slips and no capital gains, etc. for $150.00 up.
With a Rental for $350
A Business for $350 - Rental and business likely $450
And an American only (lives in the US with no Canadian income or filing
period) with about the same things in the same range with a little bit more
if there is a state return.
Moving in or out of the country or part year earnings in the US will ALWAYS
be $800 and up.
TDF 90-22.1 forms are $50 for the first and $25.00 each after that when part
of a tax return.
8891 forms are generally $50.00 to $100.00 each.
18 RRSPs would be $900.00 - (maybe amalgamate a couple)
Capital gains *sales) are likely $50.00 for the first and $20.00 each after
that.
Just a guideline not etched in stone.
-----------------------------------
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US / Canada / Mexico tax, Immigration and working Visa Specialists
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email to taxman at centa.com <mailto:taxman at centa.com>
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Disclaimer: This question has been answered without detailed information or
consultation and is to be regarded only as general comment. Nothing in
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