I do. But what about my taxes?
David A. Altro is a frequent contributor to Paul Delean’s business column in the Montreal Gazette. Click here to view the article online or scroll down to read David’s answer to the first question, about cross border marriage and taxes.
Monday, August 22, 2011
Relocating to the U.S. and cancelling a life-insurance policy were among the subjects raised in the latest batch of reader letters. Here’s what they wanted to know.
Q: “I am a Canadian living in Quebec, in a relationship with a Vermont resident. Should we marry and reside in Vermont, can I continue to work in Canada? Who do I owe taxes to? Should we not marry, can I reside in Vermont and continue to work in Canada? Anything else I should consider?”
A: Local attorney David Altro, who works in both countries, says that if you don’t marry, you won’t have the right to live in the U.S. without a work visa or Green card.
If you do marry a U.S. resident, that person can sponsor you to obtain a Green card. “You will always have the right to work in Canada as you will always be a Canadian citizen,” Altro said. If you reside in the U.S. and work in Canada, you will pay income tax to the Canada Revenue Agency for your Canadian-sourced income and also file U.S. income-tax return Form 1040 declaring your worldwide income. Under the Canada-U.S. Tax Treaty, you’ll be entitled to a foreign credit on your U.S. return for taxes paid in Canada. If you leave Canada, there may also be departure tax issues to look into, Altro noted. Read the rest of this entry »