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| *Ostroff, Fair and Company>>>Canada Taxes |
What taxes are a u.s. citizens required to pay working in canada? |
What taxes are a u.s. citizens required to pay working in canada? if you are receiving wages in canada, they you will have federal and provincial income taxes withheld from your pay. you will also have canada pension plan (like old age security) and employment insurance deducted from your pay. you are required to file a canadian income tax return to determine your tax payable/refund status in canada and when you file your 1040 in US you may take either a foreign tax credit for the taxes you paid to canada (income taxes, cpp, and EI) OR you may be eligible to take a Foreign Earned Income Exclusion, whichever is best for your situation what ever the taxes are in canada you have 2 pay plus your taxes that you normally pay in your hometown.When I worked in Rhode Island I had to pay 7% plus pay Ct tax which was 6% and that came out of my check weekly. A US citizen files a regular US tax return on worldwide income. So yes you do pay taxes to your home country and home state. If they withhold any Canadian tax from your paycheck you may be able to claim credit on your federal & state returns for foreign taxes paid or possibly request a refund from the canadian govt with special form they provide You'd have to pay the Federal Taxes, plus Provincial Taxes for whatever Province you're working in, PLUS.. taxes back in the US on the money you made while working in Canada. |
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