IAGTFI

Well... I feel like a criminal now... j/k!!!

Thank you all for the assistance and we are open to more comments, suggestions and discussion. This IS going to happen as I've seen the light and it shines on my future home, Canada, eh?

My loving wife (aka. Canasa) didn't hesitate to move down here at 35 years of age then and after 10 years of marriage and frequent (mostly summer, some winter) visits to her previous home I now have to wonder, "What was she thinking?" I suspect she was a crack smoker, the early days, as a child. I'm sure they cooked it in their basement or something...

Either way, I'm coming to my calling home and thank you to all who have and will respond. This HAS to happen for us...

Sincerely,
John

PS. No... It's not John Doe...

IAGTFI

Keep in mind, I am still a "By God American" with a kick-yer-a$$ attitude... But we're ALL AMERICAN... f'n NORTH American, eh?

sgallagher

And I'm from the US (born and educated), and I've lived in Canada for
over ten years with no problem at all in finding good paying employment
(I work in the I.T. industry - so I can't speak for any other). Still,
the fact that I'm originally from the US has never shown to be any type
of barrier, to me.

As far as your comment about knowing the right person to get a job,
(ie. "it's not what you know, it's who you know.") - that's a universal
truth anywhere in the world, not just Canada.

I'm not saying that there aren't some industries in Canada, where these
problems don't exist, because they do. But, you also can't
unilaterallhy make the statement that if a person isn't Canadian, then
they won't get a good job in Canada, because it's not true.

sgallagher

(snip)
>
> His company is global, and they can pay him through Canada, or US. They
> have a Canadian head office. Human resources is just looking into his
> transfer now. He will not be getting a paycheck from the US office, so
> I don't understand why we would have to pay US taxes?

I can understand why that would confuse you, because Canada and nearly
every other country with an income tax will usually impose that tax
based on "residency" - they tax the income of their residents, and/or
"source" - they tax income that is generated within their borders. The
US follows these policies also, but in addition, the US will also tax
the worldwide income of any person with US citizenship, regardless of
where he lives or where the income was earned. So, your husband would
be subject to US taxes because he's a US citizen. The fact that he
wasn't living in the US or that he was working for and being paid by a
Canadian companhy would not change the fact that he would be subject to
US taxes. The other country known to have a similar tax policy, based
on citizenship, is the Philippines.

Don't let that scare you, because there are credits and exemptions that
can be taken to reduce, and most likely eliminate any US tax due.

Your husband may want to view IRS publication 54, "Tax Guide for US
Citizens and Resident Aliens Abroad" which can be found on the IRS
website at: http://www.irs.gov/publications/p54/index.html

Publication 54 explains how he can use the foreign earned income
exclusion, to exclude a portion (possibly all) of his non-US salary
from US tax. Any income that could not be excluded from US tax would
be taxable in the US. But, if that income were also taxable in Canada,
he'd be able to subtract the Canadian tax paid from any US taxes due.
This usually means that your husband will filing a US tax return each
year, telling the IRS that he owes them $0. Of course, as a resident
of Canada he will also have to file Canadian tax returns, and pay
Canadian taxes.

He may want to consult with a tax preparer who is knowledgeable in the
area of tax rules for US citizens who live abroad, at least for the
first year that he files his taxes after moving outside the US. There
are scenarios whereby a US citizen abroad does end up having to pay tax
to both his country of residency and the US, especially when a specific
income is not taxed in the same manner by both countries.

> Oh and.. WOW about importing our vehicles. I think we will sell my
> vehicle and just have ONE to import. Makes that a whole lot easier.
> Its a 2500 Dodge RAM - 2001 year model. We have the title on that one,
> as well I will get the paper work showing that all the recalls have been
> done and are up to date.

In order to import your car, it will have to be cleared by the
Registrar of Imported Vehicles, which is a private company that was
contracted by the Canadian government to handle car importations from
the US. The procedure is fairly streamlined, but you may want to check
their website at http://www.riv.ca In particular you need to make sure
that your vehicle meets Canadian safety standards. Most vehicles sold
in the US do meet the requirements, but a few do not. They must either
be modified, where possble, or they will not be allowed for permanent
importation.

P.S. I hold US citizenship and I've lived in Canada for over ten years.

sgallagher

IAGTFI wrote:
> > Well... I feel like a criminal now... j/k!!!
> >
> > Thank you all for the assistance and we are open to more comments,
> > suggestions and discussion. This IS going to happen as I've seen the
> > light and it shines on my future home, Canada, eh?
> >
> > My loving wife (aka. Canasa) didn't hesitate to move down here at 35
> > years of age then and after 10 years of marriage and frequent (mostly
> > summer, some winter) visits to her previous home I now have to wonder,
> > "What was she thinking?" I suspect she was a crack smoker, the early
> > days, as a child. I'm sure they cooked it in their basement or
> > something...
> >
> > Either way, I'm coming to my calling home and thank you to all who
> > have and will respond. This HAS to happen for us...
> >
> > Sincerely,
> > John
> >
> > PS. No... It's not John Doe...
>
> Keep in mind, I am still a "By God American" with a kick-yer-a$$
> attitude... But we're ALL AMERICAN... f'n NORTH American, eh?

As a side note, once you become a permanent resident in Canada you
would ultimately be able to apply for Canadian citizenship, without
losing your US citizenship. Many people mistakenly believe that US
citizens are not allowed to be dual citizens, but it's not true. More
information on that subject can be founds at;
http://www.richw.org/dualcit/ and of course from the State Department
website at: http://travel.state.gov

Canasa

Ahh ok. I am still a little confused. I just talked to my ex-brother-in-law, (Can Perm resident/US citizen) was when he inherited money from his fathers company in the US, as well when they divided the shares. Other then that he said he never even notified them when me made NO US income. I just told him what I read and he said, that his sister never either. I guess if they have NO intent to come back to the USA and live they are not worried about it? Dunno, but he said when he has had to file he filed when he made NO income from the US he never filed. So he filed on and off, without NO ill effects from NOT filing each year...

Yes I found out a few years ago that my hubby could apply for Can Citizenship! I was relieved to hear that.

K.. going to read about importing the vehicles again..

Thanks... muchly. I think we will file the form every year anyways. Oh and I have never filed back in Canada after my final year of income that I had there either.. I hope I don't run into a glitch on that one...

sgallagher

> Ahh ok. I am still a little confused. I just talked to my ex-brother-in-
> law, (Can Perm resident/US citizen) was when he inherited money from his
> fathers company in the US, as well when they divided the shares. Other
> then that he said he never even notified them when me made NO US income.

He's mistaken about the requirements then. The requirement to file is
the same whether a US citizen lives inside the US or abroad, and even
if the income is earned abroad. The fact that they haven't contacted
him about it yet (and they may never contact him, or they may) doesn't
mean that he wasn't supposed to file a US return.

> I just told him what I read and he said, that his sister never either.
> I guess if they have NO intent to come back to the USA and live they are
> not worried about it?

Potentially. If the IRS felt that he owed them money, they could
request the Canada Revenue Agency to collect it on their behalf, as
they have a mutual collection agreement.

> Dunno, but he said when he has had to file he
> filed when he made NO income from the US he never filed. So he filed
> on and off, without NO ill effects from NOT filing each year...

All I can do is refer to you to a few websites that mention how US
citizens are subject to US tax, even if they live and work abroad. How
you proceed will be up to you, of course. That being said, many
(most?) US citizens living abroad don't actually have to pay any US
income tax because they are allowed to exclude a generous amount of
foreign earned salary income from US tax, and they are given a credit
for any income tax they pay on that income to the source country. This
often eliminates any US tax due. The requirement to file still exists,
but you end up sending in a return showing that you owe no taxes.

The best place to check is with the Internal Revenue Service. On their
website, check for

IRS Publication 54 - Tax Guide for US Citizens and Resident Aliens
Abroad at:
http://www.irs.gov/pub/irs-pdf/p54.pdf
They indicate that the worldwide income of US citizens is generally
subject to US income tax, regardless of where that person lives.

A non-government site would be American Citizens Abroad. They have a
section on taxes for US citizens who live outside the US, at:
http://www.aca.ch/cadtopic.htm

> Thanks... muchly. I think we will file the form every year anyways. Oh
> and I have never filed back in Canada after my final year of income that
> I had there either.. I hope I don't run into a glitch on that one...

You shouldn't encounter any problems with the fact that you didn't file
Canadian tax returns when living in the US, unless you were earning a
significant form of income in Canada. That's because Canada does NOT
iuse citizenship as a determining factor for tax liability. They use
residency, as do most countries. You were not subject to Canadian
taxes on any non-Canadian income, as long as you were not a resident of
Canada, and you would not have had to file a Canadian return in that
case.

sgallagher

> You shouldn't encounter any problems with the fact that you didn't file
> Canadian tax returns when living in the US, unless you were earning a
> significant form of income in Canada. That's because Canada does NOT
> iuse citizenship as a determining factor for tax liability.

That "luse" was a typo, by the way. I meant to type "use", not "luse".

Canasa

Once again thanks for all the help! I just downloaded ALL the forms. Found a doctor in Memphis (closest to us) that will do his required medical. Just finished doing his passport application. I am also applying to get my Canadian passport renewed.

So much to know! Just checked with a international moving company about all our stuff, they said each box needs to be written on, (contents and quantity) as well if we should use a moving company we need to meet them at the border.

I am sure I will be referencing this thread often as I need to.

While looking over the requirements of sponsoring a spouse... do I have to show income to support him? I don't work, he does! He is getting the required information from his company (the official letter showing his transfer to Canada)... that should take care of that right?

Thanks once again...
When get there I will let my ex brother-in-law know what I have found out about the US citizens living abroad and having to file the US tax returns every year.

Thanks muchly again!
Canasa

Canasa

Just wanted to update everyone..
We are moved .. 3 trailers, 2 vehicles imported. Wow what a journey but we are done. My husband just recieved his letter from Can Immigration saying he can now apply for his OHIP in Ontario. We have plugged along and on the 16th of March it will be officially a year.

We are in the process of figuring out our taxes. I have read through some of the publications here, and I am at a loss. He is living abroad but has US income! Argh! Any suggestions??? help! As well he has had Arkansas State tax withheld and we are have not resided there since March 07.. We shouldn't have Capitol gains on our primary residence there either I hope?? Anyone know of a tax company that deals with both Can and Amer taxes???

Thanks...
Canasa