As a U.S. citizen, if I am working in Canada on a temporary work permit, would I pay any U.S. taxes?

Question

Also, what if I was a "permanent resident" of Canada, instead of just on a temporary work permit?

Thanks!

Answer 1

waggy's the only responder of the first 3 who has a clue. There is such a thing as the "foreign earned income exclusion" which is available if you are a bona fide resident of Canada for a period that includes an entire taxable year, or if you are physically outside the United States for 330 days during a period of 12 consecutive months (not necessarily a calendar year). There are other requirements and limitations; I believe the exclusion was just raised to $82,400 or thereabouts (plus a housing amount). You should consult a qualified advisor for details.

Alternatively, you can claim a foreign tax credit for Canadian tax paid. You can't claim both the credit and the exclusion for the same income. Your advisor can tell you which is best for you.

Answer 2

it isn't as elementary as those "like it or bypass away it" sorts make it sound. The U.S. taxes you as well to the taxes you pays to Canada, (authentic free u . s ., the really u . s . on earth to attempt this) plus there develop right into a invoice handed into regulation talked about because the Hero's Act which states that citizen's renouncing u.s. are project to seizure of 40 4% of all global aspects. so some distance as getting into Canada you picked an magnificent position in Vancouver. you'll could follow for a visa and there are quite some available. Then hit upon a interest and characteristic a sponsor or get hitched to a Canadian lady and follow that technique. yet have self assurance me getting out of u.s. is extra sturdy than getting onto Canada, be careful.

Answer 3

You are taxed on worldwide income as a U.S. citizen. You have to file a return each year in order to elect the foreign income exclusion on your U.S. return. If you don't file and make the election you lose it. Also the election only covers the first $80,000 of foreign income.
As a temporary assignment, expected to last less than 12 months you can deduct the additional living expenses that you incur. If the assignment is to last more than 12 months then the additional expenses are not deductible.
If you pay tax to Canada on the income earned you will be entitled to a foreign tax credit on your U.S. return so that you don't pay tax twice on the same income.

Answer 4

It all depends on how long you were in Canada working and there are many different circumstances to consider for this question. It would be best to contact a CPA in regards to this question.

Answer 5

doesn't matter what visa status you have. Income earned while working abroad is not taxable in the US.

Answer 6

yes, the Dems will not allow you to escape paying your fair share