Moving to the US from Canada – Tax implications

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Question

Hi Phil,

Thanks for a well-written and timely article on US-Canada cross border
tax issues. I am one of the many working professionals who is about to
face the complications as described in your article
(http://philhogan.com/cross-border-tax/tax-consequences-of-emigrating-leaving-from-canada/)

A bit on my background:
I am a Canadian permanent resident living in (Canadian Province) for the past 6
years, last of the 4 I have spent working. I am a (professional) by
profession. I will be moving to US and taking up a job in (US state)
starting November this year. I am currently employed by a Canadian
company in XXXXX and will be leaving that job end of October.

– I do not own a property in Vancouver since I have been renting all this while
– I do have RRSPs, savings account and other bank accounts
– I do have BC medical insurance and a BC drivers license

Now its amply clear to me that by terminating my canadian residency
(form NR73, closing bank accounts, terminating health insurance, etc),
I will not have to pay taxes in Canada on my next years income. But
what complicates my situation is the fact that I want to intentionally
maintain my residential ties with Canada, since I will be applying for
my citizenship shortly and I want to keep a good residential standing
vis-a-vis my citizenship application.

Considering this I have the following questions,
1.  How can I deal with the taxation scenario for next year, all of
which will be earned in the US.
2. How do I deal with this years tax situation since I am making a
move mid-year and I will have US paychecks for the last 2 months of
this year.
3. Moving forward how do I position myself to simply my tax situation.

You response to the above will be highly appreciated. Also please let
me know if there is a good time to call you or your firm this week at
the number on your website.

READ  US Citizen moving to Canada - Possible expatriation tax

Cheers,
XXXXXX

Answer

I called this individual to help answer his questions. If you have a similar question don’t hesitate to call me.

Phil Hogan, CA
250-661-9417

Do you need help from one of our Cross Border Professionals? Contact us here and we'll reach out shortly.

1 COMMENT

  1. I moved to Canada from the US 28 years ago to marry the love of my life, we met on a blind date and married six weeks later. My husband promised me at the time that once he retired we would move to the US to live ( It was only to be 20 years). Now that the time is nearing I would like to know what the tax implications are and because I am American what are the benefits to going home that my husband would benefit from? The bank and we own our home and my husband will receive a pension, we have no other investments. Now that the time is nearing, he is seeing just the negative, due to the unknown. Please advise
    Thank you

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