Discussion:Internet work--foreign earned income?
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| Revision as of 18:12, 23 January 2008 Sandysea (Talk | contribs) (If you are a cit) ← Previous diff |
Revision as of 16:40, 24 January 2008 LKfromCANADA (Talk | contribs) (SandySea, Canada) Next diff → |
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| {{ForumReplyPost|UserID=Sandysea|Date=23 January 2008|Text=If you are a citizen of CDA and you have CDN source income (earned in that state) then CDA gets to tax you on this as well as other worldwide income. As such the US taxes you on worldwide income but you can take a treaty position to not pay taxes to both CDA and the US on the same earned income. }} | {{ForumReplyPost|UserID=Sandysea|Date=23 January 2008|Text=If you are a citizen of CDA and you have CDN source income (earned in that state) then CDA gets to tax you on this as well as other worldwide income. As such the US taxes you on worldwide income but you can take a treaty position to not pay taxes to both CDA and the US on the same earned income. }} | ||
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| + | {{ForumReplyPost|UserID=LKfromCANADA|Date=24 January 2008|Text=SandySea, Canada does not tax its citizens. You have to live in Canada or earn income from Canada to be taxable here. A Canadian citizen living in the U.S. and earning all their income in the U.S. is not subject to Canadian tax. A Canadian living in Canada is taxed on his worldwide income. | ||
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| + | Jules can move back to Canada. The income would be now be considered Canadian income as his services are performed in Canada. As long as you meet the tests for the foreign earned income exclusion, you should be entitled to the exclusion as the income is "foreign" and "earned". | ||
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| + | You should check out the Canadian tax consequences as usually tax is higher in Canada than in the U.S.!! | ||
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| + | }} | ||
Revision as of 16:40, 24 January 2008
Discussion Forum Index --> Advanced Tax Questions --> Internet work--foreign earned income?
Discussion Forum Index --> Tax Questions --> Internet work--foreign earned income?
| 23 January 2008 | |
| Hello, hope someone can clear this up. I work for a US company based in MD. I recently started working from home, in MD. If I were to move to Canada and continue working (all my work is done on the internet) would this income be considered foreign earned income? I'm a citizen of both countries if that makes a difference. | |
| 23 January 2008 | |
| Check out the Regs for Sec. 911, specifically Reg. Sec. 1.911-3. This situation is a little different and I didn't see anything out there really addressing it. The Code seems pretty straight-forward on this, but it doesn't specifically address this situtation. | |
| 23 January 2008 | |
| If you are a citizen of CDA and you have CDN source income (earned in that state) then CDA gets to tax you on this as well as other worldwide income. As such the US taxes you on worldwide income but you can take a treaty position to not pay taxes to both CDA and the US on the same earned income. | |
LKfromCANADA (talk|edits) said: | 24 January 2008 |
| SandySea, Canada does not tax its citizens. You have to live in Canada or earn income from Canada to be taxable here. A Canadian citizen living in the U.S. and earning all their income in the U.S. is not subject to Canadian tax. A Canadian living in Canada is taxed on his worldwide income.
Jules can move back to Canada. The income would be now be considered Canadian income as his services are performed in Canada. As long as you meet the tests for the foreign earned income exclusion, you should be entitled to the exclusion as the income is "foreign" and "earned". You should check out the Canadian tax consequences as usually tax is higher in Canada than in the U.S.!! | |
