Taxes

[CitizenUS 0]

I was wondering......

If a Canadian citizen immigrates to the USA and becomes a permanent resident with a green card and has a job in the USA, does the Canadian citizen still pay income taxes to Canada?

Also if a USA citizen immigrates to Canada and becomes a permanent resident and has a job in Canada, does the USA citizen still pay income taxes to the USA?

[payxibka 10,045]

One of the "benefits" of being a US citizen is filing taxes... simply being a resident of another country does not eliminate that "benefit". You may in fact have no tax liability, but that will depend on individual facts and circumstances.

[YuAndDan 153]

NO, foreign citizen is exempt from paying tax to home country when living as a resident in different country.

Note: a US citizen is not exempt from filing a US tax return, just exempt from paying income tax on foreign income up to I believe 80K.

Not sure about Canada a person living in the USA on a green-card is different from a TN or work visa that allows work, but not permanent residency.

[CitizenUS 0]

Thanks for the replies.

To summarize what I read:

So I can assume there would be no income taxes paid to the "home" country if a person is a permanent resident of Canada or the USA?

A USA citizen who is a perm resident of Canada and working in Canada would have to file USA income taxes, but wouldn't have to pay any taxes to the USA?

A Canadian citizen who is a perm resident of the USA and working in the USA would not have to pay taxes to Canada?

Am I reading this right?

[trailmix 77]

So I can assume there would be no income taxes paid to the "home" country if a person is a permanent resident of Canada or the USA?

No, that is not true. (see below where you have broken this down in to 2 questions)

A USA citizen who is a perm resident of Canada and working in Canada would have to file USA income taxes, but wouldn't have to pay any taxes to the USA?

No, that is not true. As YuandDan mentioned, you have to file U.S. taxes and you may have to pay taxes to the IRS, it depends on your income - if it is over, roughly, the 80k U.S. mark then yes, you may have to pay U.S. taxes on the amount exceeding this.

A Canadian citizen who is a perm resident of the USA and working in the USA would not have to pay taxes to Canada?

That's true.

Am I reading this right?

[zyggy 9]

I was wondering......

If a Canadian citizen immigrates to the USA and becomes a permanent resident with a green card and has a job in the USA, does the Canadian citizen still pay income taxes to Canada?

Also if a USA citizen immigrates to Canada and becomes a permanent resident and has a job in Canada, does the USA citizen still pay income taxes to the USA?

1) Canadian does not have to pay taxes to CRA or report non-Canadian income once they are no longer a resident of Canada. If no-rsident tax is paid on Canadaian income, then you do not have to report that either.

2) USC must always report their income to the IRS no matter where they live for life. However, there are exclusions and foreign tax credits that take care of any Canadian income, so it's extremely unlikely that you would ever have to pay US income taxes while living and working in Canada. But you do have to report it.

Edited January 8, 2009 by zyggy

[zyggy 9]

A USA citizen who is a perm resident of Canada and working in Canada would have to file USA income taxes, but wouldn't have to pay any taxes to the USA?

No, that is not true. As YuandDan mentioned, you have to file U.S. taxes and you may have to pay taxes to the IRS, it depends on your income - if it is over, roughly, the 80k U.S. mark then yes, you may have to pay U.S. taxes on the amount exceeding this.

After the exclusion is taken out, if you still have foreign income, you can take a foreign tax credit to take care of the rest. This provision is to make highly compensated individuals pay tax if one were to move to a tax haven.