Filing Canadian/Ontario Taxes while working US

M

mohitverma_bost

Registered Users (C)
Hi:
I wanted to ask people for how about going to files Canadian taxes if you work in US? Do you have to pay taxes twice?? US State and Provincial and Federal taxes? I looked through their revenue canada website and forms and was a bit confused? Can someone share there experiences as to the best way to file your canadian taxes?


thanks a lot!

Mohit
 
What you need to do is to first convert the US Income to Canadian. You can take the annual average from the link below.

http://www.bankofcanada.ca/pdf/nraa02.pdf

assuming you made US$60,000 in year 2002 then

60000*1.57=94,200 Canadian. You should take this ($94,200) as you income and report it on your T1. Complete your calculation till Line 13 on your T1. On line 14 of your T1 is where you subtrace your Taxes paid in the US (Federal+State+Local). Make sure you convert the (Federal+State+Local) to Canadian.

Do the same on your ON428 (Ontario Provincial Tax) if you live in ON. You will not be able to take any foreign tax credits on ON428. You can do this only on your T1.

If you are still confused, you call call the CCRA folks and they will help you over the phone.


Good Luck
 
Canadian Taxes

Hi Vault:
thanks for your prompt reply! I will try out what you mention. One question I do have is can one subtract unemployment insurance and Medicare taxes as well or not?

thank you again.

Mohit
 
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