4 ms·

Just be glad Canada doesn't tax worldwide income for nonresidents like the US does. If they did, your cushy SV job would be much less attractive. Though the la

Just be glad Canada doesn't tax worldwide income for nonresidents like the US does. If they did, your cushy SV job would be much less attractive. Though the lack of snow might compensate.

x5n1 11y ago
It would not, the US has tax treaties with countries like Canada so you don't get double-taxed. The only case in which you get double taxed is if the US has no treaty with the country. The US is one of the few countries which does this and I guess it's mostly because American contractors have been enabled by the US government to do these sorts of jobs, like for instance in the Middle East, and the government feels that this warrants a cut.
- amscanne 11y ago
  > It would not, the US has tax treaties with countries like Canada so you don't get double-taxed. The only case in which you get double taxed is if the US has no treaty with the country. This is only true for federal taxes. States aren't required to follow federal tax treaties. So California, for example, doesn't recognize any tax treaty with Canada. There are lots of ways you can wind up getting taxed twice.
  - x5n1 11y ago
    Not sure how you would get double taxed this way. You only end up paying Federal tax if you are not in the country. Not State tax as you don't belong to any State.
    - amscanne 11y ago
      Different countries have different rules for taxation. It's perfectly possible to be considered a resident (or deemed resident) in two places concurrently. This is frequently the case for people who split their time between multiple countries. I know many people who have been in this position.
potatolicious 11y ago
I've done the math - it doesn't really make much of a difference. For both CA and NY the combination of federal and state income tax means the tax rates are actually pretty similar. For states without state income tax, of course, that changes things. At my present income, if Canada wanted a slice of the pie I'd owe a very small cheque to them each year. The paperwork would be more painful than the tax. And that's assuming you maintain Canadian residency - if not then you're only on the hook for federal income tax, which is strictly going to be lower than whatever you're paying California (you only pay the difference to Canada due to tax treaty), so your total Canadian tax bill will be a whopping $0.
- amscanne 11y ago
  > And that's assuming you maintain Canadian residency - if not then you're only on the hook for federal income tax I realize that this is a hypothetical, but FYI the CRA has rules that kick in when you're paying taxes and not a resident (e.g. you're a "deemed resident", "factual resident", etc.). Generally you will still be taxed in the province where you have significant ties or last resided.

Just be glad Canada doesn't tax worldwide income for nonresidents like the US does. If they did, your cushy SV job would be much less attractive. Though the lack of snow might compensate.

x5n1 11y ago

It would not, the US has tax treaties with countries like Canada so you don't get double-taxed. The only case in which you get double taxed is if the US has no treaty with the country. The US is one of the few countries which does this and I guess it's mostly because American contractors have been enabled by the US government to do these sorts of jobs, like for instance in the Middle East, and the government feels that this warrants a cut.

amscanne 11y ago
> It would not, the US has tax treaties with countries like Canada so you don't get double-taxed. The only case in which you get double taxed is if the US has no treaty with the country. This is only true for federal taxes. States aren't required to follow federal tax treaties. So California, for example, doesn't recognize any tax treaty with Canada. There are lots of ways you can wind up getting taxed twice.
- x5n1 11y ago
  Not sure how you would get double taxed this way. You only end up paying Federal tax if you are not in the country. Not State tax as you don't belong to any State.
  - amscanne 11y ago
    Different countries have different rules for taxation. It's perfectly possible to be considered a resident (or deemed resident) in two places concurrently. This is frequently the case for people who split their time between multiple countries. I know many people who have been in this position.

potatolicious 11y ago

I've done the math - it doesn't really make much of a difference. For both CA and NY the combination of federal and state income tax means the tax rates are actually pretty similar. For states without state income tax, of course, that changes things. At my present income, if Canada wanted a slice of the pie I'd owe a very small cheque to them each year. The paperwork would be more painful than the tax. And that's assuming you maintain Canadian residency - if not then you're only on the hook for federal income tax, which is strictly going to be lower than whatever you're paying California (you only pay the difference to Canada due to tax treaty), so your total Canadian tax bill will be a whopping $0.

amscanne 11y ago
> And that's assuming you maintain Canadian residency - if not then you're only on the hook for federal income tax I realize that this is a hypothetical, but FYI the CRA has rules that kick in when you're paying taxes and not a resident (e.g. you're a "deemed resident", "factual resident", etc.). Generally you will still be taxed in the province where you have significant ties or last resided.