IR-1 - Keeping existing remote job in Canada

[Ptitchou 117]

My Canadian company wants to keep me on when I move to the US. I realize the drawbacks to this are CAD/USD conversion and lack of health insurance. However, no gap in employment would be helpful. So I have a few questions that I haven't found clear answers on in the search function:

 

1. Do I need to switch to contract instead of permanent salaried after I have my PR so that I'm not paying Canadian taxes via pay deductions?

 

2. If I activate the PR at the border and then return here for a few more months to tie loose ends, am I officially beholden to the IRS for work done in Canada from that day forward?

 

3. Will I end up paying overlapping taxes in both countries for those few months I live in Canada with a green card? 

 

4. Is there any period of time between the C/IR-1 activation and receiving a SSN that I cannot work? Or is there something like registering a tax number that would allow me to continue working while in Canada? 

Edited December 14, 2020 by Ptitchou

[JeanneAdil 6,505]

To give best answers,  much will depend on # of months worked in CAD and USA

a good accountant can  help with tax issues the first year and after would all be US income

1. a contract would help if salaried means taking out Canadian taxes

2. On a spouse visa you can come and activate the green card process and return for a short time,  as the visa spouse allows multiple entry

3  So dependant on # of months lived here and there 

4  you will not have to wait for SS # as the spouse visa will have I 551 stamp for work (good for a year) while you wait for green card and SS #/ I hope you marked the DS 260 to have USCIS activate the SS card 

 

The following is the treaty for tax purposes for the 2 countries so you don't pay for both but does tell you how to go about the issues  

 Our IRS site

 

https://www.irs.gov/pub/irs-trty/canada.pdf

[Ptitchou 117]

Thanks for the answers. Considering staying about 3 months after activating the visa before making the final move. 

 

Edited December 14, 2020 by Ptitchou

[NikLR 13,227]

14 hours ago, Ptitchou said:

My Canadian company wants to keep me on when I move to the US. I realize the drawbacks to this are CAD/USD conversion and lack of health insurance. However, no gap in employment would be helpful. So I have a few questions that I haven't found clear answers on in the search function:

 

1. Do I need to switch to contract instead of permanent salaried after I have my PR so that I'm not paying Canadian taxes via pay deductions?

 

2. If I activate the PR at the border and then return here for a few more months to tie loose ends, am I officially beholden to the IRS for work done in Canada from that day forward?

 

3. Will I end up paying overlapping taxes in both countries for those few months I live in Canada with a green card? 

 

4. Is there any period of time between the C/IR-1 activation and receiving a SSN that I cannot work? Or is there something like registering a tax number that would allow me to continue working while in Canada? 

1) not sure which would be better for you honestly.  Once you become a non-resident you change the way your company pays taxes on you. 

2) regardless if you file jointly with your spouse you have to declare world wide income for that year.  Unlike Canada that only taxes you on residency, the USA doesn't.  So regardless you likely will have to file taxes for the whole year but probably can claim some sort of exemption since there is a tax treaty that prevents double taxation. 

3) see above.  the biggest issue will be your loss of health care benefits.  You'll need private insurance for the time period that you're in Canada still.

4) nope

[darth vader 133]

On 12/14/2020 at 9:57 AM, NikLR said:

3) see above.  the biggest issue will be your loss of health care benefits.  You'll need private insurance for the time period that you're in Canada still.

if he is physically living in Canada, I think he would still be covered by the health insurance?

[jackanddeona 310]

On 12/22/2020 at 9:44 AM, darth vader said:

if he is physically living in Canada, I think he would still be covered by the health insurance?

Not necessarily. When you activate visa you become resident of the US. Essentially he would just be visiting for 3 months.

[NikLR 13,227]

On 12/22/2020 at 9:44 AM, darth vader said:

if he is physically living in Canada, I think he would still be covered by the health insurance?

Nope he’s no longer a resident.