Ed_The_Gypsy said:
Thanks, too! Roths are a problem, then. I gather that foreign income may be tax-free for the first 5-years of citizenship/landed immigrancy? Maybe 5 years is all I need.
Ed,
landed immigrancy/citizenship is not the issue. Tax residency is the issue. I suggest you google up the US/Canada tax treaty and read it (I know...boring). It is a complex topic, but there are several things that can cause the Canadian government to consider you a resident for tax purposes. And yes, you can be a resident of 2 places at once for tax purposes.
As you are probably already aware, if you are a US citizen, the US government requires you to file a tax return on your WORLDWIDE income, regardless of where you reside (one of only a couple countries in the world that require this). The Canadian government considers your residency, regardless of your citizenship or immigration status for tax purposes. The treaty between the 2 countries determines which place gets first dibs on your taxes. Taxes paid in one country are credited in the other up to a limit (I think it is still $80,000/year but might have changed).
However, certain events (some of which are in my previous post) are considered taxable events in Canada but not in the US. Earnings on Roths are one example.
I strongly suggest you consult a cross-border accountant if you are working in Canada, no matter who cuts your paycheck. For one thing, there is the "sojourner rule" which states that if you are in Canada for 183 days in a year, they can tax you no matter what your immigration status or residency. I think there are some exceptions to this, however, if you were hired in the US and working for an American company. I'm no expert in this stuff, just have had to learn some of it to cover my own a$$.
I just consulted with a tax attorney and an accountant a couple weeks ago going over this stuff because my situation is somewhat pathological. Much can be avoided with some pre-planning. If you own a house in Canada, or have professional registration of some kind, it gets tougher.
Bottom line is--plan ahead. If you need a referral to a suitable accountant, PM me.
Bosco