Hi,
I am working in USA on H1B visa. I became permanent resident of Canada in this October 2010. I moved to Canada now. I still work for my employer in USA from my home in Canada for the time being. Once I find some job in Canada here, I plan to quit my USA job.
I file my tax returns for USA earned income every Feb to IRS/State government in USA. So, I will be filing my tax returns for the year 2010 in February 2011. Do I need to file any taxes in Canada also? Please note that I do not have any Canadian employer yet. I have been working only for my USA employer, even from Canada.
Hi,
I am working in USA on H1B visa. I became permanent resident of Canada in this October 2010. I moved to Canada now. I still work for my employer in USA from my home in Canada for the time being. Once I find some job in Canada here, I plan to quit my USA job.
I file my tax returns for USA earned income every Feb to IRS/State government in USA. So, I will be filing my tax returns for the year 2010 in February 2011. Do I need to file any taxes in Canada also? Please note that I do not have any Canadian employer yet. I have been working only for my USA employer, even from Canada.
I am posting my reply here so it might be helpful to others in the same situation.
I talked to a tax consultant in Canada about this situation and he suggested me to first file tax returns in USA, and then it seems that I should be filing tax returns in Canada as well. Since USA and Canada has tax treaty, there may not be double taxation and I will be getting a foreign tax credit (not sure yet how it works exactly). But as for what I understood, I should still file a tax return in Canada.
