US citizen, living in Canada with Canadian PR working in the USA

[Lulachka]

I was wondering if anyone may know if it is legal for me to continue to work in the US (being that I am a US citizen) while living in Canada as a Permanent Resident? I am not sure if there is some paperwork that needs to be filled out now that I hold a PR card. I live right by the border, have a Nexus for easy crossing and love my job in NY and do not want to switch jobs.

Also, do I then have to do taxes for both countries?

Can my income be used for obtaining a mortgage in Canada?

Any and all help is much appreciated.

Thank you!

 

[scylla]

Yes - it's perfectly legal.

You will have to file taxes in both countries. (As a US citizen, you are required to file US taxes regardless of where you're living.)

 

[Lulachka]

Yes - it's perfectly legal.

You will have to file taxes in both countries. (As a US citizen, you are required to file US taxes regardless of where you're living.)

Thank you very much for your quick reply. I know about the US world wide tax (yay me) I was just hoping that I wouldn't have to file Canadian being that I've got no Canadian income to show.

 

[dsanchez]

You'll have to file US taxes regardless as you know.

For Canadian taxes, you will be required to file taxes if you spend more than 183 days of the year living in Canada, and your worldwide income is taxable. You'll receive a foreign tax credit for whatever taxes you pay in the USA.

 

[mike2236]

You need to review the residency rules for tax purposes per the treaties between US and Canada. The 183 days is one criteria but there are other criteria that precedes this.

 

[Lulachka]

You need to review the residency rules for tax purposes per the treaties between US and Canada. The 183 days is one criteria but there are other criteria that precedes this.

Thank you, I will look into it online and see if I can find anything helpful.

 

[Rob_TO]

I was wondering if anyone may know if it is legal for me to continue to work in the US (being that I am a US citizen) while living in Canada as a Permanent Resident? I am not sure if there is some paperwork that needs to be filled out now that I hold a PR card. I live right by the border, have a Nexus for easy crossing and love my job in NY and do not want to switch jobs.

Also, do I then have to do taxes for both countries?

Can my income be used for obtaining a mortgage in Canada?

Any and all help is much appreciated.

Thank you!

If you are living in Canada, then you are definitely a resident for tax purposes. This means filing Canadian income tax and reporting all of your world wide income. You will most likely pay your US income tax first, then the difference to Canada i.e. if US tax rate is 30% and Canada is 40%, you'll pay 30% to US first then just the difference of 10% to Canada (very simplified example).

As for the mortgage, this is entirely up to the individual mortgage lender you intend to use as all have their own rules for qualifying. As long as you can show consistent income and have been at the same company a reasonable time, then working for a foreign company in general should be ok.

 

[dsanchez]

You need to review the residency rules for tax purposes per the treaties between US and Canada. The 183 days is one criteria but there are other criteria that precedes this.

This is a fair comment. I'd find an accountant to handle your taxes - even in this kind of scenario, it's only going to be about $100 at the most, and it's well worth it to be sure it's done right.

 

[mike2236]

If you are living in Canada, then you are definitely a resident for tax purposes. This means filing Canadian income tax and reporting all of your world wide income. You will most likely pay your US income tax first, then the difference to Canada i.e. if US tax rate is 30% and Canada is 40%, you'll pay 30% to US first then just the difference of 10% to Canada (very simplified example).

As for the mortgage, this is entirely up to the individual mortgage lender you intend to use as all have their own rules for qualifying. As long as you can show consistent income and have been at the same company a reasonable time, then working for a foreign company in general should be ok.

This is my expectation as well.