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Earning U.S. Dollars Living in Canada

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(@Anonymous)
Joined: 1 second ago
[#9]

My wife and I have recently moved from Los Angeles to Ontario. I am currently self-employed and earning USD from a US-based company, and will soon be looking for a tax professional to ensure we take all possible steps to ensure we comply with both US and Canadian tax requirements (and ideally come out ahead).


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Posts: 663
(@dexter)
Joined: 3 months ago

Thanks for contacting me. I have many clients in the same situation as you. As a US citizen, you must pay US taxes on your worldwide income. To avoid / reduce double taxation, you can claim a foreign tax credit on your US tax return for part of the Canadian taxes paid.

It may also make sense for you to incorporate a Canadian company and bill your client through your Canadian company. This is because Canadian corporations pay a low rate of tax of only 15%!


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