Quote:
Originally Posted by pkfinn
You DO receive a foreign tax credit for taxes paid in Canada. But you will still have to file in the U.S. The first year will be the worst (dual taxes paid in both countries). I strongly encourage you to hire a U.S. CPA and a dual Canadian accountant to organize your taxes your first year. It's one of the trickiest things about the move.
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One quick note of clarification. It is possible to avoid the dual taxation in that first year outside the US. You are allowed an extension on the time to file that first return from outside the US until the time when you have fulfilled the residency requirements for taking the overseas earned income exclusion. Basically, you don't pay US taxes on the first $80,000 or $90,000 of earned income (i.e. salary) once you establish that you are resident outside the US.
Cheers,
Bev