Canadians living in US. TAXATION, RRSP, BENEFITS IN CANADA.

[life-journey 7]

My husband is a Canadian citizen, now that we are almost done with the process for his green card his employer in Canada offered to hire him as an individual contractor in order for them to keep him. We plan on returning to Canada after 2yrs and his company will then rehire him as staff.

 

Now since he will basically be self employed and running his own business from the house that we will be renting in US we are going to claim a portion of rent and utilities as business expense. But since he will be working for a canadian company and receive his paycheck direct deposit to his bank account in Canada his paycheck will be taxed there but his business expenses are in US. How do we go about claiming taxes in both countries?

 

will he be considered as factual resident? Will he and our daughter still be eligible for benefits? e.i canada child benefit? how do we keep our rrsp or avoid getting taxed twice if we withdraw it? 

 

 

[Ryan H 3,812]

Moved from IR-1/CR-1 Process & Procedures to Canada regional forum.

[NikLR 13,227]

On 2/28/2018 at 1:39 AM, life-journey said:

My husband is a Canadian citizen, now that we are almost done with the process for his green card his employer in Canada offered to hire him as an individual contractor in order for them to keep him. We plan on returning to Canada after 2yrs and his company will then rehire him as staff.

 

Now since he will basically be self employed and running his own business from the house that we will be renting in US we are going to claim a portion of rent and utilities as business expense. But since he will be working for a canadian company and receive his paycheck direct deposit to his bank account in Canada his paycheck will be taxed there but his business expenses are in US. How do we go about claiming taxes in both countries?

 

will he be considered as factual resident? Will he and our daughter still be eligible for benefits? e.i canada child benefit? how do we keep our rrsp or avoid getting taxed twice if we withdraw it? 

 

 

He cannot get any benefits from Canada.  That is only for Canadian residents and he cannot be a Canadian resident and a US resident.   RRSPs have a special way to claim on taxes, so you can keep them if you choose.  A current tax treaty between Canada and the USA allows for him to claim a foreign exemption or something similar.  I suggest the serbinski forums for more questions on taxes.  https://serbinski.com/