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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 118087
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I am an american born citizen and also have a canadian

Customer Question

I am an american born citizen and also have a canadian citizenship.after working in Quebec for 8 years I moved back to the U.S. and started working again thinking that I woulds now be considered resident of the U.S. My Canadian tax preparer informed me that I would have to declare all my income as taxable in canada because I maintained most of my possessions there and a residence.How Will the U.S. treat this situation?I hope that I did,nt do something illegal.My Canadian accountant says there is a treaty and the governments will fight it out for who gets the tax.What should I expect to happen?
Submitted: 1 year ago.
Category: Legal
Customer: replied 1 year ago.
I did maintain a room at a rooming house in Quebec and kept my Quebec drivers licence and my car registered there.The state of Maine who issued my U.S. licence said that this was ok to have the 2 licences due to no reciprocity laws.I own a large woodlot in quebec and have several bank accounts and many credit cards.I have no posessions in the U.S..I did intend to work for one year in the U.S. and then return to Quebec.But does the U.S. allow this?It was an oversight on my part.But I could not have liquidated all of my Quebec holdings nor did I want to.My adress in Quebec is 50 miles from the U.S. border and Where I work in Maine is 53 miles from the Quebec border.
Customer: replied 1 year ago.
I do have a long standing bank account in the U.S. and credit cards too.I have completed nonresident U.S. declarations as required in all previous years.All revenue was taxed by Canadian authorities for those but I was working in Canada.2015 I started working in the U.S. on June 17.I went back to canada for about 20 days after that date until Dec.31.
Customer: replied 1 year ago.
What would be the proper way to procede to avoid any legal issues.Can I Live in Quebec and maintain my holdings and work in the U.S. and be taxed as a resident of Canada.I heard about a treaty for people who live near the borders or maybe for anyone who could benefit from it.
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
As a Canadian/US citizen and resident, even if you are working in the US and stay in the US for purposes of working, the tax issue is a little complex. You need to first pay state taxes on any income you earn in a particular state, regardless of the federal tax situation.
Now, as far as your tax return, you still have to file the US Tax Return, but under Canadian tax rules, which have a much more relaxed definition of residence requiring filing and paying of taxes, all income you earn has to be filed as your accountant says on your Canadian taxes. The good news is that any taxes you pay to Canada on income earned is deducted on your US tax return, so you are not double taxed, but you do need an accountant in the US who understands the dual taxation of the multi-country worker.
You can indeed have a Quebec and Maine license and even have a car registered in both places as there is no treaty between the province and Maine.
You can also have bank accounts in both Canada and the US and I have many clients who have accounts in both countries and who work in Canada but are dual citizens with residences in both Canada and the US. They pay their tax on their income in accordance with Canadian law, then on their US taxes they take a deduction for taxes paid to the Canadian government from their US taxes. Also, they do pay state income taxes in whichever state in the US they are working in.