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US citizen in Canada, but got paid to US bank?

Discussion in 'Business & Tax Advice' started by xpro, Jan 25, 2011.

  1. xpro

    xpro Regular Member

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    Hello

    I'm a US citizen living in Canada and I gave one CPA company my US bank account number so they can transfer money into that since incoming wires was free for that bank. But how would I go about paying taxes on the income I earned do I pay Canada or US?


    Best Regards!
     
  2. pasdoy

    pasdoy Power Member

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    Honestly, ask someone in the finance sector. Here some +/- 14yrs old kids will try to help you by giving you fake informations. Unless its like 100$, dont botter an wire it directly
     
  3. wrangler

    wrangler Regular Member

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    Good advice - get professional advice. As I understand, you pay taxes based upon where you reside. So those earnings are due to the Canadian Gov't. In fact you might find your US CPA company requires you to fill out a declaration form to confirm, for the US IRS, that you don't reside in the US. In the even you have spent only part of the year in one or another country, there are certain rules / options about who you pay. And as a US citizen you ahve to do a US tax form anyway, but you just show your Canadian earnings and tax on there.
     
  4. thomansfel

    thomansfel Jr. VIP Jr. VIP

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    Complete a W8 tax form or a similar one for the CPA company and pay taxes in your country. I am 90% sure but you should double check. Take care
     
  5. OnlineGodfather

    OnlineGodfather Senior Member

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    as far as i know you will pay usa since you are the US citizen.
     
  6. BorisTipsIt

    BorisTipsIt Regular Member

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    As US citizen, you have to pay the IRS regardless of where you earn the money. You can skip the tax on the first $80k of earnings if you are out of the US for most of the year. You'll have to figure out what most is. I seem to recall it was something like 350 days out of the year or something. Probably want to talk to a CPA on this one.
     
  7. Bross

    Bross Senior Member

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    Find an accountant my friend.

     
  8. wrangler

    wrangler Regular Member

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    (I just posted this on the other thread discussing this) W-8BEN is the correct form (declaration of non-citizenship / non-residency) - this allows the affiliate company to prove to the IRS that they are not required to withhold from you. That's it. Apart from that, you have no US tax obligation. You do however have to declare and pay taxes on the income where you reside.
     
  9. onelifewunlove87

    onelifewunlove87 Power Member

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    Canada does not report the the IRS so the earnings were not reported. If it was a decent amount of money the bank may have reported it. Some people would just not claim it but that will lead to trouble down the road if/when you ever face an Audit. Bottom line talk to an accountant b.c. I have no idea what I am really talking about.
     
    Last edited: Feb 5, 2011
  10. Octobus

    Octobus Newbie

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    Wrong place to ask for advice in your case... You do have tax liability in the US in whatever case, that means you have to file your tax forms every year but might not be taxed in the US because of the 80k exemption.
     
  11. dzoniij

    dzoniij Regular Member

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    I think you must pay taxes In Canada if you are Canada resident if you are USA rsident pay taxes in USA. Common rule in world I think.
     
  12. richelld

    richelld Junior Member

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    The truth is, just a small handful of evil bankers own every central bank across the world. So no matter what Country you pay taxes to, its all going into their pockets anyway.