Canadian working in US?

R

rjgiggs

New Member
Hi,

I'm 100% born & raised Canadian. I'm currently considering accepting a job in Buffalo. Ideally I'd like to live in Ontario and commute to work in Buffalo everyday. I'm sure this is possible. However, what do I need to do this? What will it mean for taxes? I know that as this gets a bit closer to reality I will have to sit down with an accountant. I was just wondering if anyone could shed some light on these issues or any other issues you might think of so that I can go to the accountant with at least a bit of knowledge.
 
comment

We did this until our home sold for several years and got hit really hard at tax time since our earnings were out of country and we avoided Canadian taxes all tax year. I could not recommend living in Canada and working in US.
I could however recommend living in US and working in US. The taxes are much lower and the US is far more family-friendly if one spouse wants to stay home with children. We always get a substancial amount back at tax-time in America versus paying in heavily in Canada.
Speaking with stubborn Canadian nurses where I live that work in US and insist in living in Canada, they have to use all of there US tax refund and then some to pay their taxes back in Canada as one has to file in both countries
My happiest day was cutting all ties with Canada and not having to file there anymore so I can pocket the generous US tax refund.
I once read that a Canadian earning $50k annually pays the same rate of tax as an American earning $250k annually.
I often argue these points with Canadians with socialist leanings that make excuses for being overtaxed in Canada. (ex-so called "free healthcare" and social programs)
 
Yikes. That sounds scary. I would move to Buffalo, even though it's not the nicest place I've ever seen. No offense to those from Buffalo. However, my wife is a teacher. Let's face it, schools are much better equiped and as far as I know they're paid much better here in Ontario. So she's not going to move. Not at least until I'm being paid enough to compensate. Here's to hoping that the accountant has better news. Thanks for the post!
 
comment

Don't know if your situation is complicated enough to involve an accountant, but I can tell you for sure if you live if one country and work in another, you will have to file in both countries. We had this very situation and had a professional that specialized in doing both countries taxation for us.

Never been to Buffalo so I cannot comment on what it is like. Do not be quick to assume Canadian schools are better, in all likelihood, Ontario school teachers are paid according to the strong-arm tactics of their unions, not because they are better than anywhere else..

We have found U.S. schools to be very adequate and they do not waste precious education time on failed concepts like bilingualism.
 
Bad Idea. Live in tha same country you work in. I had a friend who did this but was flying every weeks. Lived in Canada and Worked in the US for a US Company. This was fine for a while. Until he started having a lot of stamps in his passport. Also he got hit with a huge tax bill. I cannot remember is he contributed to his 401K and RRSP at the same time. Something along those lines. Anyway it was a huge mess with revenue canada and had to pay penalties.

Anyway why not live in the US. There is a huge difference in your overall taxes. I have been in the US for 6 years and have made more and saved more then I ever could have in Canada. Its hard to save when you get hit with 50% income tax then 15% Sales tax on top of that.

Good Luck
 
Neil B. said:
I once read that a Canadian earning $50k annually pays the same rate of tax as an American earning $250k annually.
Click to expand...
That's true, and if you live in Canada, and work in the US, that gap is even bigger.
 
You must log in or register to reply here.
Top