The US taxes its citizens and green card holders wherever they are in the world. If you want the benefit of US Citizenship, you must file a US return.
More and more individuals and corporations are looking at Canada as a place to work and do business. With it comes the uncertainty of Canadian taxation. There are a number of issues that need to be addressed when spending just one day working in Canada. Some of these concerns are:
- Residency concerns
• Do I have to pay taxes in both countries?
• Can I avoid paying foreign taxes?
• Is there a treaty with my host country? Will I continue to be
• Will I be caught if I don’t pay US taxes?
• How will the IRS find me?
• I don’t want to pay any US tax. How can I avoid it?
• What happens if I give up my US citizenship?
• I’ve never lived in the US, so why do I now owe US taxes?
• I thought US tax rates were lower than in Canada?
• Am I double taxed?
- Employment income
• I’m on foreign payroll. Can the US tax me?
• How is my employment income taxed now that I working
...outside the US?
• What is the foreign earned income exclusion?
• How will Alternative Minimum Tax (AMT) affect me?
• Can I continue to pay into US Social Security (FICA)?
• What happens to my US investments?
• What happens to my foreign investments when I return to the US?
• Can I keep my foreign bank accounts when I return to the US?
• Why does the US want to know about all my foreign bank
• Are there investment restrictions as a result of my move?
• What should I do with my IRA or 401(k)?
• Can I shelter assets from Canadian taxation?
• I own a non-US corporation, what do I have to report to the US?