When you are moving between Canada and the US, you may be required to file taxes in both countries and declare your “worldwide income." This can lead to "Double Taxation".Proper tax planning and implementing that planning with your tax preparation in both countries, is the key to optimizing your tax situation.
Tax planning helps you plan your tax situation BEFORE tax preparation (which is purely a historical event). The purpose is to develop strategies, discuss the risks and then implement at tax filing time.
Moving to another country can give you opportunities for tax planning that generally need to be done BEFORE you move. There are some things that can be done afterwards but your best chance is before you take up tax residency in the other country.
With our knowledge of both Canada and US tax laws and our experience in applying the Treaty, we can help you take advantage of the tremendous opportunities that are available before exiting one country and moving to the other.
Tax preparation helps you file your tax returns, with the right tax authorities, within all applicable laws. The main goal is to ensure you are in compliance with all tax authorities so you can sleep well.
At Transition Financial, if we are involved in your tax planning, we are happy to prepare your taxes. US and Canadian taxes have several differences and of course, each Country has its own laws, tax credits and tax deductions. Our tax preparation experts will ensure that you don’t miss any money-saving deductions or credits and that you pay the least amount of tax you are legally responsible for.
When moving between Canada and the USA, there are some tremendous opportunities to take advantage of BEFORE exiting one country and moving to the other . . . but it gets complex, quickly!
There is always value in planning and ensuring compliance with the tax authorities, but the most planning opportunities are available in the year before departure. If the government “hate mail” machines turn on and fill your mailbox with notices, we can help you correct the problem so you can get on with living your life.