QUESTION:

I am trying to find out about US states that don't charge dual tax for
Canadian citizens with a working visa to the United States.
I have a friend (Canadian Citizen) who is trying to find out about States
that only charge the American tax (excluding the Canadian tax).
He knows that Florida, North Carolina, and San Diego (CA), charge American
tax only, but he wants to find out more. I am trying to help him
with the info, at the same time it is a knowledge for me as well.'
Thank you for your cooperation.
And I hope to hear from you soon.

avid,
You can tell the Australian student he could also look into
http://www.iaeste.org. It is another student exchange program (but
specifically for those with technical - e.g. engineering - backgrounds). I
worked in Denmark through this program (was studying at UBC) and it was
great. The organisation can help organise your visas, get you in touch
with people there etc. He should hurry though because applications take a
while.

This question is a two-parter which required more information to answer - it is all here with the names removed to give anonymity.
=======================

Hello David

I am a Canadian (from Ontario) working for a NY Company under a TN visa as a Management Consultant

I am in my 2nd year here. Last year I used the services of Protax(?) in NYC and they prepared my US income tax return. I prepared my own Canadian tax return. This year, I'm looking at tax of approx $100k Cdn ($50k US, $30k Cdn) on an income of approx $220k Cdn. Besides maximizing my RRSP, I was hoping to find someone who could offer ways and means to greatly reduce this tax burden.
The guy I used last year had no knowledge of the Canadian tax system and kept suggesting ways to shave a few dollars off the US return but I had to keep telling him that it didn't make much of a difference as I have to pay a higher tax rate in Canada so his ideas didn't net me any savings.

From what I understand, it appears that you are positioned to prepare both US and Canadian tax returns for individuals such as me. I realize you probably require additional information before giving firm answers but

1) Can you give me an idea of your fees for preparing three returns (US, NYS,
Canadian),

2) I'm hoping to find a way to pay allot less than $100k in income tax - do you think this is realistic?

I look forward to your response.

Thank you

PS - with respect to my tax calculation above, although I'm self-employed in the US, I have certification of coverage under CPP which saves me from paying thousands in SST in the US

QUESTION:

1. I had been working for a Canadian company before Oct 9, 2004. From
January 13 to May 1st, I was send by my company to Florida and work there.
During this period, I got Canadian pay. My income during those 4 month
converted to USD is about $18K

2. My Canadian pay from May to October is about $23K, converted to USD.

3. I left my employer in Canada and joined an American company in NY
starting from October 14. I have US pay now and this should continue to the
end of this year. For this two months, my income is about $20K USD.

4. According to 'Substantial Presence Test', I should be considered as
resident for tax purpose this year. Is this correct? Or should I be a
'dual-status'?

5. What my income will be when I file US tax? Should it be "18k + 23k + 20k"
= $61K, if as it said " world-wide income" should be taxed for resident
alien?

6. What my income will be to Canadian government for this year then? $61K?,
18k + 23k = 41K? or 23K? Please note that I am closing my accounts, giving
up OHIP etc, to prepare for my non-resident status in Canada.

7. An accountant friend of mine told me there is a treaty between the two
countries to ensure people will not be double taxed. I read Publication 597,
and cannot find relevant info. Is what my friend told me true?


Your help will be greatly appreciated.

sincerely

QUESTION:

Hello,
I have a tiny company in the US that I formed in 2001. I purchased the
software that I had worked on for several years. Unfortunately, I named the
company the same as the one that existed prior to mid-1998 (even though we
incorporated in a different state). I was an employee in that company. There
were two intervening companies that owned this software. I do not do
business in Canada .

Apparently that 1998 company had a tax liability assessed by revenue Canada.
For a year or so I have been receiving letters demanding payment. I wrote a
few responses explaining that these were different companies. I never
received a reply just more form letters.

Will this be the total of Revenue Canada's activity? Will they eventually
give up? Will they hire a US based collection agency to harass me?

Thanks

QUESTION: I have recently been recruited to the US. I worked half of the 2002 year in Canada and half in the US. Although eligible for residency in either country, I claimed residency in the US. I filed my Canadian taxes with CCRC and paid them...I now have to file with the IRS and wonder if I have to claim my Canadian income with the IRS even though I paid Canadian tax. I don't want to get double-taxed! Please help...

Yesterdays emails had a question from someone with UK and Canadian pensions
who was moving to the US.

The following from another reader quite properly points out the medical
insurance problems he will likely encounter.

QUESTION:

My wife and I are US citizens, and my wife became a Canadian citizen in 2000. In 2001 while living in the US, we purchased future retirement property in BC and opened non-resident chequing accounts. In October, 2003 I became a PR, rented an apartment in BC, obtained a drivers licence and credit card, and, after 90 days we both returned to the US to sell our home. It is now sold, there will be capital gains tax, and we will have been out of Canada about 170 days. If we spend a little more time outside Canada, can we skip filing Canadian Income Tax for 2004?

QUESTION:

Hi!

We are currently living and working here at the US and we are immigrating to Manitoba, Canada. We plan to bring our brand new car and some appliances such as computers, TV, and Home theater systems. Will we be required to pay for taxes in Canada? Or will we even be allowed to bring them? Is it better to sell these items here in the US and just buy a new one in Canada?
Thank You