When you are moving to or visiting another country, there are always challenges that you will face. They could be about where you will live or what will you do for work. When it comes to moving from Canada to the United States, one concern may be taxes. It is important to know how to complete them properly and what you should pay attention to. We’ll be looking into a few steps you should be following.
Non Tax Resident
On the year you are going to be out of Canada, there might be some loopholes to help you save money. For example, declaring your non – residence for the year could have beneficial features for you. This means the country will know you are not living there. Your taxes for the year will be less since you won’t have to pay for it all.
For example, your income? Only the one that comes from sources in Canada will be checked. What does that mean? Simply, your salary or other sources of income earned abroad will not be subject to tax. Make sure you won’t be paying double tax to the Canadian government and to other countries too.
Types of Taxes
If you decide to move, you should know there is more than one kind of tax to pay. Each of them are different and may vary, depending on your status and your income. There are many professionals that can lend a helping hand and ease the process.
Whether it is personal or business tax, the experts can help you understand what to do. If you sold land, there is also tax to pay. And of course, investment taxes are some of the highest in the country. Having said that, it is desirable to get a good tax assistant help you understand and use the knowledge of it to your advantage.
Americans Living in Canada
Although the law is similar, there could be some changes when it comes to taxing Americans that live and work in Canada. A new bill that’s been tabled in the US House of Representatives may mean better conditions.
Up until now, American citizens needed to pay taxes on income in other countries. Meaning that if they receive salary in Canada, they would still have to pay tax on it in America. But if this new bill passes, that could come to a stop.
So it is no surprise that the bill received big support from all across the country. We can say that it’s a matter of time until they will accept it and start using it.
Keep Up to Date
Getting familiar with the laws is necessary in order to make the most of them. Knowing how taxes work between different countries is something you should learn before deciding to move. Even if you are just going for a short period of time, take an evening to read about it. The last thing you want is getting in trouble for not knowing fundamental things. So give yourselves the best chance that you can and use the resources available to become more aware of what you will be facing in the future.