Moving to Canada from the US

[rosweed]

Hi,

I was born in Canada, and I have dual citizenship in Canada and the US. My American born wife and I want to move to Canada. I have several questions.

1) What are the tax implications? Do we continue to pay US taxes? Are those deductible from Canadian taxes?

2) I know I can work immediately. What about my wife? What are the steps we need to take so she can work in Canada? And from there, to get her Canadian citizenship.

3) Since I have not been a resident since 1994, do I qualify for health care immediately, or is there a waiting period? Does my wife qualify, or do we have to wait for either a working visa or citizenship?

4) Should we hire an immigration lawyer?

5) What's the process involved in moving our belongings to Canada?

Thanks!

[Auld Yin]

Originally Posted by rosweed

Hi,

I was born in Canada, and I have dual citizenship in Canada and the US. My American born wife and I want to move to Canada. I have several questions.

1) What are the tax implications? Do we continue to pay US taxes? Are those deductible from Canadian taxes?
You do not pay US taxes after immigration, but in the year you do, you will probably work part of the tax year in the USA. You will require to file a Canadian Tax return for your global income in that tax year but you will be allowed to deduct tax paid to the US for the same year.

2) I know I can work immediately. What about my wife? What are the steps we need to take so she can work in Canada? And from there, to get her Canadian citizenship.
You should read Sponsoring your family: Spouses and dependent children

3) Since I have not been a resident since 1994, do I qualify for health care immediately, or is there a waiting period? Does my wife qualify, or do we have to wait for either a working visa or citizenship?
To a certain extent this depends on the Province you intend to settle in. You certainly qualify although in some Provinces there may be a three month waiting period for you. Your spouse would not qualify until she is a legally landed immigrant

4) Should we hire an immigration lawyer?
I don't really see the need for YOUto do this given your citizenship status

5) What's the process involved in moving our belongings to Canada?
You should read RC4151: Settling in Canada: Information on importing goods for people intending to settle in Canada

Thanks!

Good luck with implementing your move.

[lonestar]

Originally Posted by rosweed

Hi,

I was born in Canada, and I have dual citizenship in Canada and the US. My American born wife and I want to move to Canada. I have several questions.

1) What are the tax implications? Do we continue to pay US taxes? Are those deductible from Canadian taxes?

2) I know I can work immediately. What about my wife? What are the steps we need to take so she can work in Canada? And from there, to get her Canadian citizenship.

3) Since I have not been a resident since 1994, do I qualify for health care immediately, or is there a waiting period? Does my wife qualify, or do we have to wait for either a working visa or citizenship?

4) Should we hire an immigration lawyer?

5) What's the process involved in moving our belongings to Canada?

Thanks!

If you drive your car make sure you talk to these guys. They want you to fill out an application and fax it to them. Email them and request an application. Information provided below:

Please read through entire information packet it should answer any questions that you have, if you still have questions e-mail us with your question and we will be happy to help you.

Bureau of Customs & Border Protection Phone: (360) 332-2632
Vehicle/Equipment Outbound Team Fax: (360) 332-2639
9901 Pacific Highway E-Mail: cbp.blaine-export@dhs.gov
Blaine, WA 98230-9299
Export Hours: 8:00am – 3:30pm Monday-Friday

NO EXPORTATIONS AFTER 3:30 PM
NO EXPORTATIONS ON WEEKENDS or HOLIDAYS
(Holiday Closures for 2007 Jan 1, Jan. 15, Feb 19, May 28, July 4, Sept 3,
Oct 8, Nov 12, Nov 22, Dec 25)

Must do it at least three days in advance before you leave US.

[rosweed]

Auld Yin - thanks for all the info. What is the process for becoming a landed immigrant? Is that the same as applying for permanent residence?

Lonestar - We don't own a vehicle, so that's one less pile of paper work!

Regarding moving our belongings, I'm trying to convince my wife to sell as much stuff as we can so we don't have do a complete inventory of the house. What a nightmare that would be!

[Auld Yin]

Originally Posted by rosweed

Auld Yin - thanks for all the info. What is the process for becoming a landed immigrant? Is that the same as applying for permanent residence?

Lonestar - We don't own a vehicle, so that's one less pile of paper work!

Regarding moving our belongings, I'm trying to convince my wife to sell as much stuff as we can so we don't have do a complete inventory of the house. What a nightmare that would be!

You as a citizen are already a "landed immigrant". Nothing to do except present yourself at the border and have proof of your citizenship. You would require to apply as a sponsor for your wife and would require to prove she is your wife. She could come at first as a visitor for six months and if the sponsorship is not complete at the end of that time she could apply for extension of her visitor status. If you have been married for some time then it will be evident to the authorities that it is not a MOC (marriage of convenience). She will not be allowed to work until immigrant status is established.

[rosweed]

She will not be allowed to work until immigrant status is established.

Just so I understand, my wife cannot work until she becomes a landed immigrant? Does sending in the sponsorship application get this whole process started or do I have to do something else?

[pkfinn]

Originally Posted by rosweed

Just so I understand, my wife cannot work until she becomes a landed immigrant? Does sending in the sponsorship application get this whole process started or do I have to do something else?

Hey Rosweed,

Just so you're clear on the terminology used here in Canada: landed immigrants and permanent residents are the SAME. Once you start the permanent resident status process (for your wife), it will set things in motion to allow her to work. However, she will need a SIN (Social Insurance Number), which she will not receive UNTIL you are permanent residents.

You were given incorrect information earlier, too, regarding taxes. As a U.S. citizen you have the "privilege" and OBLIGATION of filing U.S. taxes for the rest of your life---regardless of where you live. 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.

For health care: most provinces have a 3-month waiting period (for both of you), but this will depend on where you move.

I don't think an immigration attorney is necessary---but the accountant once you land here is much more necessary.

Good luck! (P.S. I recommend hiring a Canadian moving company to come down and get your things in the U.S. and unloading in Canada. I had a U.S. company move me to Canada, and it was much trickier doing it that way.)

[rosweed]

Hey pkfinn - thanks. I was confused about the terminology.

We are going to have to put off moving if my wife can't work immediately. We can't live on just one salary. From what I've been able to find out, it could take a couple of years before she gets to be able to work. It's too bad there isn't some sort of intermediate step like the US green card and/or work visa.

[Bevdeforges]

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.

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

[rosweed]

Thanks Bev. Good information.

Originally Posted by Bevdeforges

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