How does income tax work for Canadians working in the States?

If you work and live in the States, but are a Canadian citizen and own property in Canada, how does Income Tax affect you?

For example: Sidney Crosby makes about 8.7 million dollars a year. (Feel free to use an athlete of your choice if you don’t like him, this is just for examples sake) He lives in Pittsburgh for most of the year, but isn’t (as far as I know) a naturalized American citizen. He also owns property in Canada.

How much of his pay goes to taxes and which country does it go to? Canada or America?

We have a tax treaty with the USA. It is basically designed so that a person doesn’t face double taxation on their income. They pay income tax in the country where they reside. If they reside in both countries, there are tie-breaker rules.

If he were a US citizen, he would be required to file a US tax return every year, no matter where he lives, reporting his world-wide income.

If he has income from his property in Canada he would report that income in Canada regardless where he lives.

If he has to pay tax in the country where he’s non-resident, he’ll get credit for it in his tax return for the other.

For athletes, they are considered to be earning income in the country where they are playing, so he’ll have income in both countries and will have to file Tax Returns in both.

What are Income Tax Forms? – TurboTax Tax Tip Video A number of tax forms exist to cover federal, state and city tax filing situations, but online filing can help you file your taxes accurately even if you can’t tell one form from another. Discover why standardized filing makes a difference in this video on tax basics.

Duration : 0:1:38

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ATC INCOME TAX – Your Refund Maxed!

Get Your Refund Maxed at ATC Income Tax – It’s as easy as ATC! – For a tax office near you, please visit or call 855-ATC-1050. Ask about our Free Tax Review – we’ll help you find more money if it’s there.

Duration : 0:0:31

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Daniel Altman: It’s Time to Abolish the Corporate Income Tax

The tax on corporate profits is a terrible tax. Economists to this day don’t know who pays it. And that means that we really don’t know who’s bearing the burden.

The United States has one of the most complex tax systems in the world. It takes hours and hours to fill out the return for most people. Especially if you want to claim any deductions or if you have more than one source of income, you got to file your state taxes separately. Maybe even local taxes depending on where you live. It’s a nightmare.

There’s no doubt we can do a lot to simplify our tax system. But we could also do a lot of other things to change it too. And the fact is we haven’t really made a major change in out tax system for about a hundred years. It’s been a hundred years since we got a constitutional amendment just so we can have an income tax. Now maybe it’s time to consider how we would refit our tax system for the 21st century.

One thing we could do is get rid of the corporate income tax. That’s right, the tax on corporate profits. Why? It’s a terrible tax. Economists to this day don’t know who pays it. Is it the people who own shares in companies? Is it employees of companies? Is it consumers who buy the products from companies? We don’t know. It could be a mix of all of them. And that means that we really don’t know who’s bearing the burden.

Another problem with the corporate income tax is it’s extremely volatile. Unlike your household where you pay taxes no matter what. Whether or not you spent all your income or not. When a company spends all its income, it has no profits and it doesn’t pay any corporate income tax. So that means the corporate income tax revenue is really volatile.

In years when the economy is doing great we collect a lot of corporate income tax revenue. When it’s doing badly we collect much less. And that means it’s much harder for the government to plan. It’s much harder for us to make sure that we get a steady stream of revenue from year to year and we don’t have to cut back on spending during a down turn.

So what could we do to replace it? Well one idea would be to change our Income Tax into a sort of hybrid income and wealth tax. So we would still be taxing some of the owners of capital in this country and not just people who own labor and supply that into the work force. How would it work? Well, we would have a sliding scale where, depending on your wealth, you would pay different rates of income tax. If you didn’t have any income coming off your wealth then you wouldn’t pay any tax. But the more wealth you had, the higher tax rate you’d be liable to pay.

The great thing about this is if you hold income constant, then you’re always facing the same marginal tax rate, that’s tax rate on the next dollar of your wealth. If you hold wealth constant it’s always the same marginal tax rate on your income. So that distortions on the behavior that we might have and where we invest and how we work are minimized.

Now is this too crazy an idea to be implemented in the 21st century? Some people might even say it’s unconstitutional. But it’s at least worth thinking about it because we’ve done so little to change the fundamentals of our tax system for a century. All we’ve been doing is messing with these little details that just add more lines to the tax form. Lets do something major and clean it up for the next century.

Directed/Produced by Jonathan Fowler & Elizabeth Rodd

Duration : 0:2:52

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Earned Income Tax Credit

This educational video provides information on the Earned Income Tax Credit program as well as the Volunteer Income Tax Assistance program. This video also lets you know about some free resources that will help you get the most from your income Tax Return.

This video is provided by the Legal Aid Society of Louisville, Kentucky, and provides legal information, not legal advice. If you need legal advice, please contact an attorney.

To obtain more information or to contact the local legal aid program for help, see

Duration : 0:3:35

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How to LEGALLY Never Pay Income Tax Ever Again

interview with author of “Charity Begins on the Red Carpet: How to LEGALLY Never Pay Income Taxes Again”
on Money For Lunch show Blog Talk Radio. Special thanks to Bert Martinez and producers

Duration : 0:12:13

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