Canadians working in Canada after the move to the US - what to know?

[CGs_Mother 114]

With the "new reality" of COVID-19 and working from home, my employer has offered me the opportunity to continue working at my job in Canada remotely after my CR1 comes through and I move to the US (Texas). In another forum here at VJ, I discovered there are a few of us who have been offered the same opportunity. Just have a few questions for anyone who has gone through a similar process, either pre- or post-COVID. It seems that the best option is to work as a consultant to avoid paying double taxes (federal taxes in Canada and then income taxes in the US), and there may be some loss in being paid in CAD$, but are there any other pitfalls to be concerned about? I am counting this income on my AOS (I am immigrating with a child so I have to complete an I-864A). Thanks for any advice. If your advice includes "consult a tax accountant" or "consult a tax lawyer"  any recommendations for US/Canada cross-border tax lawyers/accountants would be greatly appreciated. 

[SteveInBostonI130 3,465]

Hi,

 

You might get better responses by moving your post to the Canada regional forum.

 

https://www.visajourney.com/forums/forum/93-canada/

 

Just click the "Report Post" link in your message and ask to be moved to the regional forum.

[CGs_Mother 114]

5 minutes ago, SteveInBostonI130 said:

Hi,

 

You might get better responses by moving your post to the Canada regional forum.

 

https://www.visajourney.com/forums/forum/93-canada/

 

Just click the "Report Post" link in your message and ask to be moved to the regional forum.

Thanks! I was told to put it to the "Moving to US" forum....ack!

 

[SteveInBostonI130 3,465]

Generally that would be fine, but for Canada there is a huge group here on VJ and you'd get better answers to your situation in that forum.

 

Here's a large topic specific for IRS/CRA taxes.  It hasn't had responses since 2016, but it may still be helpful:

 

 

[Ontarkie 14,236]

~~Moved to the Canada Forum, from Working and Traveling. ~~

 

- Your topic does fit the working and traveling part of VJ it also fits in the Canada forum and since you're asking a few questions Canadian related it does fit better in Here in the Canada forum. As other Canadians can chime in if they don't venture out of the Canada forum often. 

[JlovesA 109]

Hey there,

 

My situation is a little bit different in that I do still commute into Ontario for work, but I live in Michigan.

 

The first time you have to file both taxes (and maybe forever), definitely hire an accountant who specializes in cross-border workers. You may have to hire one who doesn't live in the same town as you, but I can tell you they are plentiful in Windsor, Ontario.

 

My own tax situation is pretty straight-forward. I generally get a return from both countries. There's an accountant in my family who does my Canadian taxes now, and then we have a US accountant who does our joint US one.

 

I don't think working in one country and living in another is as complicated as people imagine, but I will say it does suck having to convert my money. 

 

By the way, if you have any Tax Free Savings Accounts, I would suggest talking to a knowledgeable accountant about that. The IRS does tax them, so that can potentially cause problems. I'm not super well versed in financial stuff, but I can tell you I still have an RRSP and a GIC in Canada, and haven't had any issues reporting those to the IRS. I bank through RBC which allows me to have accounts in both countries and transfer my paycheques easily between them. It's not cheap but it's convenient.

 

Hopefully some of this is helpful. As I said, I'm not very financially literate since I let professionals handle things for me, but I can try to help if you have any other questions.

[CGs_Mother 114]

@JlovesA Thanks. That's somewhat helpful, especially knowing I may have to file 2 returns. I'm not rich enough to have a TFSA account  but I will be keeping my RSPs and possibly contributing to them depending on whether it makes more tax sense to contribute to a Canadian or US retirement savings plan. I am going to try to find a cross-border expert after I send my exit date to the CRA because until I officially exit, I'll still be taxed as a resident by my employer. (That is if I ever get my interview...going into possible 3rd lockdown in April so I am really fearful this will bring the process to a halt once more!)

[Ptitchou 117]

2 hours ago, JlovesA said:

 

My own tax situation is pretty straight-forward. I generally get a return from both countries. There's an accountant in my family who does my Canadian taxes now, and then we have a US accountant who does our joint US one.

So do you have your taxes, CPP, EI, etc still deducted from your Canadian payroll like a normal salaried resident of Canada? 

 

I am also in a similar position as OP with being able to keep my job after moving, but we're a small company without a US presence, so we're trying to determine what the next steps are for managing this before my my actual move this summer. 

[JlovesA 109]

50 minutes ago, Ptitchou said:

So do you have your taxes, CPP, EI, etc still deducted from your Canadian payroll like a normal salaried resident of Canada? 

 

I am also in a similar position as OP with being able to keep my job after moving, but we're a small company without a US presence, so we're trying to determine what the next steps are for managing this before my my actual move this summer. 

Yeah, everything about my paycheque is the same as my coworkers who still live there.

[CGs_Mother 114]

46 minutes ago, JlovesA said:

Yeah, everything about my paycheque is the same as my coworkers who still live there.

So you're not taxed at a different rate? Did you give an exit date to the CRA or do you have a residence in Canada so you pay taxes in a specific province and still have health care in Canada, etc? I was going to be a consultant because I wouldn't have a residence in Canada anymore after I left...

 

 

[Ptitchou 117]

7 hours ago, JlovesA said:

Yeah, everything about my paycheque is the same as my coworkers who still live there.

That's interesting...I didn't think still contributing to CPP and EI would be applicable if you weren't a resident. Do you know if you get a better tax return because of being in the US or do you also need to pay US taxes? 

[JlovesA 109]

On 3/18/2021 at 7:09 PM, CGs_Mother said:

So you're not taxed at a different rate? Did you give an exit date to the CRA or do you have a residence in Canada so you pay taxes in a specific province and still have health care in Canada, etc? I was going to be a consultant because I wouldn't have a residence in Canada anymore after I left...

 

 

Yes, I had to submit a letter with my exit date to CRA asking them to deem me a non-resident, which they did. I still have to pay into Ontario taxes but I'm not eligible for OHIP. It sucks, honestly. I double-pay for health care, essentially. My work knows where I live and my correct address shows up on my pay stubs and T4. It's possible they're not taxing me correctly but that's why I hired a cross-border tax specialist the first year, and according to her, everything was as it should be. She was the one who helped me file the non-resident application letter.

 

On 3/19/2021 at 1:51 AM, Ptitchou said:

That's interesting...I didn't think still contributing to CPP and EI would be applicable if you weren't a resident. Do you know if you get a better tax return because of being in the US or do you also need to pay US taxes? 

I'm admittedly not the best person to ask about taxes but I do remember that our accountant played around with our taxes. When it was just me, it zeroed out to nothing owing and no return since I'm not paying taxes here. But combined with my husband's income, I actually get a return. Don't ask why because I don't understand it (hence hiring pros, lol). 

[puppy2021 0]

On 3/18/2021 at 2:42 PM, JlovesA said:

Hey there,

 

My situation is a little bit different in that I do still commute into Ontario for work, but I live in Michigan.

 

The first time you have to file both taxes (and maybe forever), definitely hire an accountant who specializes in cross-border workers. You may have to hire one who doesn't live in the same town as you, but I can tell you they are plentiful in Windsor, Ontario.

 

My own tax situation is pretty straight-forward. I generally get a return from both countries. There's an accountant in my family who does my Canadian taxes now, and then we have a US accountant who does our joint US one.

 

I don't think working in one country and living in another is as complicated as people imagine, but I will say it does suck having to convert my money. 

 

By the way, if you have any Tax Free Savings Accounts, I would suggest talking to a knowledgeable accountant about that. The IRS does tax them, so that can potentially cause problems. I'm not super well versed in financial stuff, but I can tell you I still have an RRSP and a GIC in Canada, and haven't had any issues reporting those to the IRS. I bank through RBC which allows me to have accounts in both countries and transfer my paycheques easily between them. It's not cheap but it's convenient.

 

Hopefully some of this is helpful. As I said, I'm not very financially literate since I let professionals handle things for me, but I can try to help if you have any other questions.

Are you the U.S.C. petitioner and used your Canadian job's incoem towards i-864 proof of funds because your Canadian job would continue after moving to the U.S.? If so, do you mind sharing a little bit of your experience at NVC and interview? Did CO have any doubts that you would actually move to the U.S.? How did you explain this at NVC, if at all?

[T&S_MTL 113]

2 hours ago, puppy2021 said:

Are you the U.S.C. petitioner and used your Canadian job's incoem towards i-864 proof of funds because your Canadian job would continue after moving to the U.S.? If so, do you mind sharing a little bit of your experience at NVC and interview? Did CO have any doubts that you would actually move to the U.S.? How did you explain this at NVC, if at all?

The petitioner can't use a canadian job to meet the financial requirements. The USC either has a US job and / or you guys have assets to rely on. You can have a co sponsor if you don't meet them.

 

A canadian job means literally 0$ on the I864. If you read the I864 instructions you will probably find your answers.

 

The NVC only checks if you guys meet the financial requirements and some others documents you will provide.

[puppy2021 0]

26 minutes ago, T&S_MTL said:

The petitioner can't use a canadian job to meet the financial requirements. The USC either has a US job and / or you guys have assets to rely on. You can have a co sponsor if you don't meet them.

 

A canadian job means literally 0$ on the I864. If you read the I864 instructions you will probably find your answers.

Yes, the petitioner can use Canadian job to meet the financial requirements if they can demonstrate that the income will continue from the same source after the petitioner moves back to the U.S.

Edited March 25, 2021 by puppy2021