7 Key Factors Canadians Should Consider When Relocating to the USA

As a Canadian considering moving or working abroad, it is essential to know how this major life event will affect your residency from a Canadian tax perspective in order to understand and plan your Canadian tax. 

With Citizen Abroad you can feel confident that your tax returns and disclosures are complete, in compliance with current income tax law, and always in your best interest.

Get To Know Us

Book a call with us to obtain a personalized estimate and understand how we can help you

Contact Us

Fact Check

Sometimes the tax savings compared to Canadian tax rates are significant, but depending on your marital situation, your income level and type of income earned and the state you move to, the savings may not be as significant as it was for your friend or co-worker.

Learn More

Sever Ties

If the tax savings are going be significant (we, of course, recommend discussing this assumption with us prior to deciding to relocate), ensure that you understand and plan accordingly for your Canadian tax residency and take all steps required to sever your “tax relationship” with Canada.

We provide an overview of Canadian residency considerations here.

Labour Laws

For Employees - Understand the structure of your compensation and benefits package and ensure you understand and have documented the rights you may have with respect to severance or unexpected departure from the organization. The employment laws are significantly different in the US vs Canada.

Non-Resident Canadian Landlord Taxation

For Canadian homeowners, consider whether you will rent or sell your Canadian home. Understand the taxation of a rental while living outside of Canada and the requirements of selling the house after you leave Canada.

We provide services and consultations on this topic here

Be US tax friendly

Make your investments “US tax friendly” before you go. Certain Canadian investments such as RESPs, TFSAs, Mutual Funds, private corporations and partnerships can create negative tax consequences or at the very least create burdensome tax compliance.

Departure Tax

Consider and be prepared for any Canadian departure tax or unexpected income inclusions that may apply in your situation.

We provide support in this area

Buy and Sell, Can you?

If you decide to retain your investments in Canada (in taxable brokerage accounts or registered accounts), understand the securities legislation that may prevent you from managing these investments from the United States.

Consult us for more information.

Bonus! State by State

Consider the state tax issues on top of your federal tax reporting. Each state is a separate “jurisdiction” and requires a separate return from the IRS forms. Items that are not taxable at the US federal level can be taxable at a State tax level (For example income and gains earned in an RRSP are taxable in California and Philadelphia)

Contact us to learn more.