Living in Canada but working in US

J

j2eeguru

New Member
Hi, I'm planning on relocating to BC (I'm a Canadian citizen) but my US employer would like me to continue to work remotely from Canada (I'm in IT and telecommuting is quite common practice these days). I'm a H1-B Visa holder as far as my US status goes.
My question is, to whom I would be paying taxes considering that I will not have a US address anymore but the employer is US based?
Any hints/advice is sincerely appreciated. Thank you.
 
Thank you for your response. I understand that the foreign tax credit calculation is somewhat complex depending on the number of income sources and their type. However, in general, will foreign tax credit "save" me from double taxation entirely (meaning that I will only be paying tax to US) or will only save a portion of the tax amount I'd have to pay in Canada anyway, even if I'd have no Canadian based income?
 
This is not as simple as "Bhand" has told you. You should pay US taxes only for the part of the year that you have lived in the USA. Then after starting your physical presence in Canada, you should pay cdn taxes. In the cdn return, claim foregin tax credit for the amount of taxes you have paid to the US.

Again, this is based on what you have told us in general. You should consult an accountant for the exact details. I am telling this to you from my first hand experience.
 
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