Taxes/Payroll - Working in US/ Living in Windsor

[desmat]

HSA: You are obligated to close all accounts when you move to Canada. All you need is to declare the income from the sources.
When you withdraw from hsa for non-medical then its taxable to US hence that comes as income for Canada as well, automatically.
HSA is no different than the savings account in the home/other country.

So we cannot have HSA in US when we are working on H1b with US employer but residing in Canada?
As the HSA or insurance details change after 1 year, then how to change insurance or remove HSA if moving to Canada in the middle of that year?

 

[harirajmohan]

So we cannot have HSA in US when we are working on H1b with US employer but residing in Canada?
As the HSA or insurance details change after 1 year, then how to change insurance or remove HSA if moving to Canada in the middle of that year?

I am not sure if we should not have HSA(or insurance coverage) as my company doesnt restrict as i can choose whether to have coverage either in Canada (prescription coverage) or in US(health coverage).

It depends on your company. Ask them if you have choice to stop your coverage to avoid expenses.

 

[desmat]

I am not sure if we should not have HSA(or insurance coverage) as my company doesnt restrict as i can choose whether to have coverage either in Canada (prescription coverage) or in US(health coverage).

It depends on your company. Ask them if you have choice to stop your coverage to avoid expenses.

Thanks.. Actually I asked it because you mentioned in previous comment that "HSA: You are obligated to close all accounts when you move to Canada"..

 

[harirajmohan]

Thanks.. Actually I asked it because you mentioned in previous comment that "HSA: You are obligated to close all accounts when you move to Canada"..

I read as we are not eligible. I dont know how well companies implement or i am not the health insurance/IRS expert. Its up to you and your company to deal with situations at the end. You can research and validate more rather than questioning more. Go with what your company says or go with what your hsa/insurance provider says.
https://answers.healthequity.com/app/answers/detail/a_id/1236/~/hsa-eligibility
"If you are eligible for national health coverage in your home country (e.g., Canada), you are not eligible to contribute to an HSA. "

 

[FutureCanadianPK]

@harirajmohan I just read the detailed publication. The detailed publication doesn't mention anything about national health coverage. I guess it might be true if you are non-resident of United States. Would it also be the case if you maintain both US and Canadian residency?(Canadian residency via significant ties route and US via significant presence or green card test)

 

[crowbocop]

If you're a Canadian PR and hold an H-1B, is there a requirement to re-enter the US every month to maintain H-1B status?

 

[swan0206]

If you're a Canadian PR and hold an H-1B, is there a requirement to re-enter the US every month to maintain H-1B status?

It totally depends on your situation and requirement. If you can mention what exactly you are trying to do, people can suggest here.

 

[crowbocop]

I was basically trying to figure out my physical presence requirements in the US for a situation where I work from Canada (pretty much the whole time) for a US-based employer through an H-1B.

Do I need to maintain a physical address in the US?
Do I need to make frequent trips to the US (if this is the case, then I won't apply for an H-1B and instead work for my employer as a contractor)?

 

[neil_user]

I am in a similar situation.

Planning to work on H1B in US for 3 days (Wed, Thu, Fri) and 2 days from Canada (Mon, Tue). Staying overnight in US on Wed, Thu.
I will maintain Canada tax residency (spouse works here).

• Will I be able to be a US non resident due to substantial presence or closer connection (will be maintaining health, DL, etc) in Canada.
• Also how will the taxes would work in this situation? Will I need to source W2 income in (3:2 ratio) for US and Canada?

Also does anyone has a referral for a good cross border accountant, please dm me. Thanks in advance.

 

[jigs040]

1) Yup. If your US state has a mandatory withholding requirement irrespective you are a Non-resident (like mine) you will deduct US state tax on your payroll. If not, you can opt out and directly pay everything to CAN province.[ Not recommended. You will loose more money in conversion plus CRA has a higher conversion rate than what I send money].
For US Federal, it will be deducted as normal.

2) No, you will file as Non-resident for US purpose and resident for Canada.

3) I opted out of my 401k. Medicare - Yes, you still pay. HSA- upto you. I have it.
Canadian equivalent you can do RRSP contributions tax free and claim it.

****from my calculations
On net at 100K ( assuming no 401, RRSP or deductions ) you will loose 3000-4000 CAD every year as you pay the difference b/w USA and Canadian tax to Canada. ( Canadian taxes are higher)

Hello - Can you tell me if you are doing tax on your own or you have done with CPA/tax consultant ?

 

[Gos1809]

I am so glad I saw this discussion. I am planning to move to Vancouver from San Francisco area. I am thinking to fly out to San Francisco on Tuesdays and fly back to Vancouver on Thursdays. So practically I will be doing 2 days wfh, but still counting 6 days(Thursday, Friday, Saturday, Sunday, Monday and Tuesday) towards my Canada residency. I know this is not too great of a plan, but I simply am little far away from completely vesting in my current company, and I also don't wana loose our PR status in Canada.

So great tips on taxation. This is definitely a little complicated scenario for taxation for me, as I will need to have residence in both countries, so tie breaking rules might be a little harder to interpret.

Is anyone in the group in the same boat?

Hi, did you move? I am on same boat. If you are comfortable, lets connect over call or meet at Vancouver/SF.

 

[DreamCanadian]

I have not figured that out yet. May be I will do airbnb, or maybe I will rent out a place. Do you think that will be an issue to maintain H1B status, or you are pointing out issues with resident status for tax purposes in US?

I am also in similar boat , would like to learn your experience , let me know if i we can talk ?

 

[Cecoct2017]

can someone help me. i am new to this thread and trying to find a job in Industrial eng sector in michigan. Lets say I get paid $80k USD in michigan and i live in windsor ontario appx what will be my take home salary in USD after both us/canada taxes. Thanks in adavance. @harirajmohan

 

[DreamCanadian]

can someone help me. i am new to this thread and trying to find a job in Industrial eng sector in michigan. Lets say I get paid $80k USD in michigan and i live in windsor ontario appx what will be my take home salary in USD after both us/canada taxes. Thanks in adavance. @harirajmohan

do We have any calculators? Even I am looking for similar answers ?

the big problem is what if person earns 150k in USA ? In this case Half of his salary would go in Tex as Canadian takes huge tax when your salary is more that 100 CAD

 

[DreamCanadian]

do We have any calculators? Even I am looking for similar answers ?

the big problem is what if person earns 150k in USA ? In this case Half of his salary would go in Tex as Canadian takes huge tax when your salary is more that 100 CAD

are you going to work from home in Michigan ? Are you planning to file lCA in Michigan home address too ?