Tax question

[Arecbee]

I hope you will settle a bet for me..

I am American moving to Canada (family class, marriage)

when I've gone a full tax year without working in the states, do I still have to pay any tax to the US?

I say I do, and my brother has bet me $20 I don't. Please advise. Thank you.

 

[scylla]

You have to file US taxes (whether you have to actually pay tax to the US depends on the results of your return).

You have to file US taxes for the rest of your life regardless of where you are working and living. That's one of the wonderful things about being a US citizen.

 

[jwnmm]

You have to file US taxes (whether you have to actually pay tax to the US depends on the results of your return).

You have to file US taxes for the rest of your life regardless of where you are working and living. That's one of the wonderful things about being a US citizen.

Would you include the Canadian income on the return? I'm confused as to what exactly you would even have to declare if you weren't working/living in US, though I figured as much.

 

[scylla]

Would you include the Canadian income on the return? I'm confused as to what exactly you would even have to declare if you weren't working/living in US, though I figured as much.

You have to declare worldwide income - so yes, you would include Canadian income. Typically you would file Canadian income taxes first. You would then get credit in your US tax return for the taxes already paid to Canada for your income (this avoids double taxation). My husband has been filing in both countries for years now and he has never had to actually pay taxes to the US because the Canadian taxation rates are so much higher.

 

[jwnmm]

You have to declare worldwide income - so yes, you would include Canadian income. Typically you would file Canadian income taxes first. You would then get credit in your US tax return for the taxes already paid to Canada for your income (this avoids double taxation). My husband has been filing in both countries for years now and he has never had to actually pay taxes to the US because the Canadian taxation rates are so much higher.

What if the US spouse isn't working? Would they still have to file taxes with their (Canadian) spouse's income?

I feel this is definitely going to be a huge headache come 2017.

 

[volkov]

What if the US spouse isn't working? Would they still have to file taxes with their (Canadian) spouse's income?

I feel this is definitely going to be a huge headache come 2017.

I find it a headache too (have had business dealings in Canada and the US), they don't go out of their way to make it easier