When leaving Canada to settle in the United States, many people often ignore or misunderstand the tax issues involved, resulting in unnecessary trouble and losses. Here are two common questions:

1. Cross-border tax declaration is complicated <br data-mce-fragment="1">The tax systems of Canada and the United States are quite different, and the types of taxes and declaration methods involved are also different. For non-professionals, it is a huge challenge to accurately understand and comply with the tax laws and regulations of the two countries. If you are not careful, you may miss or misreport taxes, and face high fines and legal liabilities.

2. Inadequate asset transfer and tax planning <br data-mce-fragment="1">In the process of cross-border relocation, the transfer of personal assets and tax planning is another important problem. Many people fail to fully consider the tax impact when transferring assets, resulting in the need to pay a large amount of taxes or face unnecessary tax troubles in the future. In addition, different types of assets such as pensions and investment income involve different tax issues during the transfer process. Improper handling may cause serious economic losses.

In order to avoid the above problems, it is recommended to consult a professional tax consultant before leaving Canada to understand and master the relevant tax knowledge. Golden Key Business Development Center provides professional cross-border tax consulting services to help you sort out and solve various complex issues in cross-border tax declarations, ensure that your tax declarations are accurate, and avoid fines and legal risks caused by incorrect declarations.

So, let’s understand how to determine non-tax residents and what are the specific circumstances of leaving Canada for the United States.

If your situation when you leave Canada for the United States meets the following conditions, then you are already a "non-tax resident" of Canada.

🤔 So after I submit my non-resident application to the Canada Revenue Agency, I no longer have to pay taxes to the Canadian government?

Non-tax residents include but are not limited to:
(1) New immigrants who have not lived in the city for 183 days in the current year
(2) International students who have not lived in the country for 183 days in a year
(3) Foreigners with income in Canada who have not lived in Canada for 183 days in that year on a visitor visa
(4) Former tax residents who have left Canada and whose spouse or dependents are no longer in Canada
(5) Former tax residents who have left Canada and whose spouse is temporarily residing in Canada
(6) Former tax residents who have left Canada but have businesses, investments or bank deposits in Canada

👇 We divide citizens leaving Canada for the United States into the following categories for discussion:

👉 Single citizens who work in the United States for more than six months and do not own property in Canada <br>In this case, he should become a U.S. tax resident from the date of his arrival in the United States. When filling out the annual tax return, only the income before leaving the country should be filled in on the Canadian tax return. If there is no income before leaving the country, there is no need to declare it. Do not fill in the U.S. income in the Canadian tax return.

👉 One spouse of a family goes to the United States to work, and the rest of the family members remain in Canada <br>In this case, no matter how long he works in the United States, his resident status for Canadian tax returns will not change. When filing taxes each year, you should first file your U.S. work income in the United States, and then declare your worldwide income in Canada. The tax paid in the United States can be used to offset a certain amount of Canadian tax payable.

👉 Family or single person going to the United States, owning property in Canada <br>According to the current tax law, 25% of the total rental income of non-tax residents in Canada will be paid to CRA as withholding income tax. However, you can submit an NR6 application to reduce the total rental income with some tax deduction items. For the annual procedures, please refer to our previous article: Attention non-tax residents in Canada with rental income, NR6 applications are due in December.

🤔 Question: Under what circumstances do I not have to pay personal income tax in the United States?

The answer from the Golden Key Business Development Center is: Yes. If you meet any of the following conditions, you do not need to pay US personal income tax on your salary income in the United States:

1) Employment income in the United States does not exceed US$10,000

2) In the past year, the applicant has been in the United States for no more than 184 days, and the salary income was not paid by a U.S. tax resident or a permanent establishment in the United States.

👉 If you are self-employed in the United States and do not have a fixed office location or permanent establishment, then it is a different situation.

If the above example is different from your situation, please feel free to consult us. We are professional tax experts who are proficient in the tax laws of both countries.

We have expanded our business to the United States (New York, Florida and California). We will continue to serve every customer with the most professional knowledge and the most sincere attitude.

How can we help you?

At Golden Key Business Development Center, we have a professional team of tax experts who can provide you with a full range of tax services. We can help you:

✅ Tax planning : Develop a detailed tax plan based on your personal situation and financial goals.

✅ Tax Filing : Helps you accurately file your Canadian and US taxes, ensuring compliance and maximizing your chances of a tax refund.

✅ Tax consulting : Provide professional tax consulting services to answer your questions on cross-border tax issues and ensure that you understand and meet all tax requirements.

✅ Document Preparation and Submission : Assist with the preparation and submission of required tax documents, simplifying the process and reducing your burden.

Choose Golden Key Business Development Center and we will ensure that your journey from Canada to the United States is worry-free in terms of taxes, allowing you to focus on your new life and career.

What are the benefits of having us handle your taxes?

✅ Compliance guarantee

Our professional team is well versed in the latest tax laws and ensures that financial reporting is compliant.

Our professional team will ensure

All steps and documents are reliable and complete

If you need