ILLMAS Posted March 19, 2013 Report Share Posted March 19, 2013 TP was offered a permenant job, with a sister company in Canada but the company does not have ties to the U.S. company, employer suggested for TP and family to become citizen of Canada to avoid having to declare Canada's income in the .S. From reading the instruction for 2555 and IRS forgeign earned income and housing exclusion/deductions, I cannot find any truth to it. There is a tax treaty betweent Canada/Mexico and the U.S. so it leaves me wondering... Thanks MAS Quote Link to comment Share on other sites More sharing options...
TaxMan60601 Posted March 19, 2013 Report Share Posted March 19, 2013 That's correct - becoming a Canadian citizen wont save the TP declaring his Canadian(foreign) income on US return, unless he gave up his US citizenship! Decision like this is always hard to do and depends on many factors like other US assets, if any other type of US income to report, if any ownership, annual salary at new job, emplr contributions, future plans, even old social ties! etc. ... There is a tax treaty of course but again it depends on the circumstances. If I am not wrong Canadian tax rates are lower - this may be a factor too. Just my 2 cents. Quote Link to comment Share on other sites More sharing options...
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