Initiating new PR request but have foriegn income tax questions

[mikev99e99]

Hi,
My partner is a Canadian citizen and plans on sponsoring me for PR. I am a US citizen and work about 5 months a year in the US. I only make about $35K a year and file income tax in the USA. If I become a PR of Canada will I also have to pay income tax in Canada? If so how much? Does this depend on marital status(married, common law)?

I assume I must have to pay some tax as I will be eligible for Canadian social services such as health care.

Thanks a bunch for any help.

 

[Leon]

If you reside in Canada, that means stay in Canada more than 6 months a year, you would be required to file taxes in Canada as well. However, the US and Canada have a tax treaty so it's not like you are paying double the tax because you have already paid in the US. You may have to pay something though.

Health care is not based on filing taxes, it's based on residency. In most provinces you must live in the province at least 6 months a year to keep your eligibility. In Ontario, it would be 5 months a year but you'd have to stay 5 months in the first 6 after moving there.

 

[CharlieD10]

When you become a Canadian PR, your US income will have to be reported in Canada, as well, because Canadian taxes are dependent on residency, not citizenship. Your "world income", meaning income you earned/received during the year no matter where in the world it is sourced, is subject to being reported for tax purposes in Canada.

As Leon explained, Canada and the US have a tax treaty, so a good portion portion of whatever tax you paid on your US income in the US will be credited in Canada against any tax obligation that may arise on it in Canada. When it's tax time, find yourselves a good tax office to help you and your wife file your taxes. Places like H&R Block, among others, offer services specially to US residents in Canada.