Working in USA for Canadian employer

[SuzieQTpi 54]

Just looking for some information, input, comments....

I will be moving to the US once our IR-1 application is approved.

My current Canadian employer does not want to lose me as an employee and has offered to let me work remotely from the USA. We are on direct deposit so my pay would continue to be automatically deposited into my Canadian bank. I have a US account with a branch of this bank, and transfer money regularly from my Canadian to US bank.

Will I have to pay Canadian AND US taxes on my income? Is there a way around it?

Thanks

[Marie-Eve 3]

Just saw an accountant about that yesterday! Basically, your Canadian employer will have to subtract some taxes from your pay, just as they do now, but a lesser amount if you are considered a non resident for fiscal purpose. Of they don't withheld enough, they'll be the one held responsible.

Then you will have to declare all international revenues to the US IRS and you'll be taxed by the state you live in and the federal government, both taking into account the amount you already contributed at the Canadian revenue source.

My accountant also advised me to fill out the NR73 form that declares to CRA that you are no longer a Canadian resident. Of course until the point you are no longer a Canadian resident, you'll have to pay Canadian taxes as you normally would!

[Lemonslice 4,549]

Most Canadians in your situation pay taxes in the US and will not pay into Canada taxes, EI or CPP. It depends on different factors and it might be worth a consult with an accountant.

(In my situation, my income is not taxable in the US, so I file married filing jointly, declare it as non taxable income to the IRS; then file as non-resident in Canada)

[Marie-Eve 3]

(In my situation, my income is not taxable in the US, so I file married filing jointly, declare it as non taxable income to the IRS; then file as non-resident in Canada)

Excuse my (insatiable) curiosity: what type of income do you have that is not taxable in the US?

[Ryan H 3,790]

Moved from IR-1/CR-1 Progress Reports to Canada regional forum.