{"id":3917,"date":"2022-01-11T03:35:56","date_gmt":"2022-01-11T03:35:56","guid":{"rendered":"https:\/\/moneymakersandsavers.com\/?p=3917"},"modified":"2022-02-16T19:20:13","modified_gmt":"2022-02-16T19:20:13","slug":"canadian-expat-taxes","status":"publish","type":"post","link":"https:\/\/moneymakersandsavers.com\/canadian-expat-taxes\/","title":{"rendered":"How To File Your Taxes As An Expat in Canada!"},"content":{"rendered":"\n<p><\/p>\n\n\n<style>.wp-block-kadence-advancedheading.kt-adv-heading_f48190-5a, .wp-block-kadence-advancedheading.kt-adv-heading_f48190-5a[data-kb-block=\"kb-adv-heading_f48190-5a\"]{font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_f48190-5a mark, .wp-block-kadence-advancedheading.kt-adv-heading_f48190-5a[data-kb-block=\"kb-adv-heading_f48190-5a\"] mark{font-style:normal;color:#f76a0c;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}<\/style>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_55 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-661539671d481\"><span class=\"\"><span style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #4ff74c;color:#4ff74c\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #4ff74c;color:#4ff74c\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-661539671d481\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymakersandsavers.com\/canadian-expat-taxes\/#Are_You_an_Expat_Living_in_Canada_Here%E2%80%99s_How_to_File_Your_Taxes\" title=\"Are You an Expat Living in Canada? Here&#8217;s How to File Your Taxes\">Are You an Expat Living in Canada? Here&#8217;s How to File Your Taxes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymakersandsavers.com\/canadian-expat-taxes\/#US_Expat_Tax\" title=\"US Expat Tax\">US Expat Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/moneymakersandsavers.com\/canadian-expat-taxes\/#Canadian_Taxes\" title=\"Canadian Taxes\">Canadian Taxes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/moneymakersandsavers.com\/canadian-expat-taxes\/#Deadlines\" title=\"Deadlines\">Deadlines<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"kt-adv-heading_f48190-5a wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading_f48190-5a\"><span class=\"ez-toc-section\" id=\"Are_You_an_Expat_Living_in_Canada_Here%E2%80%99s_How_to_File_Your_Taxes\"><\/span><strong>Are You an Expat Living in Canada? Here&#8217;s How to File Your Taxes<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><br><br><img loading=\"lazy\" decoding=\"async\" width=\"624\" height=\"312\" src=\"https:\/\/lh3.googleusercontent.com\/yZFn2hDw0gkwP5_0FGpY9li4uNo4aOxLGxzxv21SkWz0HSWFEUUpJL0VvYGqmynOj8yLb7HxH9rPb60jtKW49wVuBuhI8CxHRUbys9aOiGH1kJyVWBAFeHTFKugfTzDOS-PkdZzQ\" alt=\"https:\/\/upload.wikimedia.org\/wikipedia\/commons\/0\/0a\/Canada_USA_flag_%28same_colour%29.png\"><\/p>\n\n\n\n<p><br>Credit:&nbsp;<a href=\"https:\/\/commons.wikimedia.org\/wiki\/File:Canada_USA_flag_(same_colour).png\" target=\"_blank\" rel=\"noreferrer noopener\">DrJenkins365<\/a>&nbsp;under&nbsp;<a href=\"https:\/\/creativecommons.org\/publicdomain\/zero\/1.0\/deed.en\" target=\"_blank\" rel=\"noreferrer noopener\">CC0 1.0<\/a>&nbsp;&#8211; no changes were made to the image]<\/p>\n\n\n\n<p><br><br>There are many enticing reasons to move to Canada. First, it&#8217;s one of the world&#8217;s most accepting countries for migrants. The government offers residents free healthcare, paid maternity leave, and paid statutory holidays. The country is also rich in culture and pristine natural wonders. In fact, many Americans now call Canada home. The&nbsp;<a href=\"https:\/\/www12.statcan.gc.ca\/census-recensement\/2016\/dp-pd\/hlt-fst\/imm\/Table.cfm?Lang=E&amp;T=31&amp;Geo=01&amp;SO=4D\" target=\"_blank\" rel=\"noreferrer noopener\">latest Canadian census<\/a>&nbsp;reports a population of over 377,000 former US residents. But it&#8217;s not all fun and games \u2014 American expats still have to file taxes to both countries.<\/p>\n\n\n\n<p><br><br>If you&#8217;ve recently moved to Canada, you may be wondering what you owe in taxes. This quick guide can help you get started.<\/p>\n\n\n\n<p><\/p>\n\n\n<style>.wp-block-kadence-advancedheading.kt-adv-heading_faae8f-24, .wp-block-kadence-advancedheading.kt-adv-heading_faae8f-24[data-kb-block=\"kb-adv-heading_faae8f-24\"]{font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_faae8f-24 mark, .wp-block-kadence-advancedheading.kt-adv-heading_faae8f-24[data-kb-block=\"kb-adv-heading_faae8f-24\"] mark{font-style:normal;color:#f76a0c;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}<\/style>\n<h2 class=\"kt-adv-heading_faae8f-24 wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading_faae8f-24\"><span class=\"ez-toc-section\" id=\"US_Expat_Tax\"><\/span><strong>US Expat Tax<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><br><br>No matter where they live, expats are required to report their worldwide income, or income earned outside the US, to the IRS each year. Don&#8217;t worry, though \u2014 as&nbsp;<a href=\"https:\/\/www.mondaq.com\/unitedstates\/capital-gains-tax\/1107830\/six-ways-the-us-can-and-will-tax-american-citizens-living-abroadif-they-don39t-renounce-beforehand\" target=\"_blank\" rel=\"noreferrer noopener\">this piece from Mondaq<\/a>&nbsp;explains, there are provisions in place to prevent double taxation. For example, the&nbsp;<strong>Foreign Earned Income Exclusion<\/strong>&nbsp;clause allows you to exclude up to $108,700 from your US income tax, while the&nbsp;<strong>Foreign Housing Exclusion<\/strong>&nbsp;clause lets you exclude expenses incurred as a result of living abroad.<\/p>\n\n\n\n<p><br><br>Meanwhile, the&nbsp;<strong>Foreign Tax Credit<\/strong>&nbsp;allows you to offset your Canadian and US taxes. With this clause, in particular, you may end up not having to pay any US income tax at all. Without a totalization agreement between the US and Canada, you can even avoid paying US social security and Medicare taxes. If you&#8217;ve already been taxed for these in the US, this can count toward meeting residency requirements in Canada.<br><br><\/p>\n\n\n<style>.wp-block-kadence-advancedheading.kt-adv-heading_9063e1-00, .wp-block-kadence-advancedheading.kt-adv-heading_9063e1-00[data-kb-block=\"kb-adv-heading_9063e1-00\"]{font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_9063e1-00 mark, .wp-block-kadence-advancedheading.kt-adv-heading_9063e1-00[data-kb-block=\"kb-adv-heading_9063e1-00\"] mark{font-style:normal;color:#f76a0c;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}<\/style>\n<h2 class=\"kt-adv-heading_9063e1-00 wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading_9063e1-00\"><span class=\"ez-toc-section\" id=\"Canadian_Taxes\"><\/span><strong>Canadian Taxes<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><br><br>You&#8217;ll also have to pay taxes as a Canadian resident. You fall under this category if you own a home or other personal property in the country, are married to or have dependents who are Canadian, hold a Canadian government ID, or have other social or economic ties to the country. Here, you&#8217;ll be filing the usual income tax. You&#8217;ll need to pay 15% for the first $41,544 taxable income, 22% on the next batch of the same amount, 26% on the $45,712 following, and 29% for any taxable income above $128,800. You\u2019ll also have to pay provincial tax (PST).<\/p>\n\n\n\n<p><br><br>Due to the varying incomes and budgets of each province, PST will differ based on where you live. This&nbsp;<a href=\"https:\/\/www.wealthsimple.com\/en-ca\/tool\/tax-calculator\/ontario\" target=\"_blank\" rel=\"noreferrer noopener\">tax calculator for Ontario residents<\/a>&nbsp;shows a PST of 5.05% to 13.16% depending on your income bracket. This is one of the highest in the country due to the high cost of living in the area. Meanwhile, Quebec charges a PST of 15% to 25.75%. In part, this may be because the government of Quebec finances more public services than other places in Canada.<br><br><\/p>\n\n\n<style>.wp-block-kadence-advancedheading.kt-adv-heading_f25415-6c, .wp-block-kadence-advancedheading.kt-adv-heading_f25415-6c[data-kb-block=\"kb-adv-heading_f25415-6c\"]{font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_f25415-6c mark, .wp-block-kadence-advancedheading.kt-adv-heading_f25415-6c[data-kb-block=\"kb-adv-heading_f25415-6c\"] mark{font-style:normal;color:#f76a0c;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}<\/style>\n<h2 class=\"kt-adv-heading_f25415-6c wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading_f25415-6c\"><span class=\"ez-toc-section\" id=\"Deadlines\"><\/span><strong>Deadlines<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><br><br>If you&#8217;re familiar with reporting to the IRS, switching over to the CRS will be a relatively easy process to grasp. Both countries&#8217; tax years begin on January 1 and end on December 31. You typically have until April 15 of the following year to file your expat taxes, and can file for an extension until October 15. Canadian taxes are due on April 30. However, it&#8217;s important to note that you&#8217;ll have to complete your Canadian taxes to have the information you need to file your expat taxes.<\/p>\n\n\n\n<p><br><br>If you&#8217;ve only just discovered that you have to pay expat tax, don&#8217;t worry! The&nbsp;<a href=\"https:\/\/www.irs.gov\/individuals\/international-taxpayers\/streamlined-filing-compliance-procedures\" target=\"_blank\" rel=\"noopener\">IRS offers an amnesty program<\/a>&nbsp;to help you get started. Conversely, those looking to move back to the US after a few years might be a little disoriented with filing taxes upon their return.&nbsp;<a href=\"https:\/\/moneymakersandsavers.com\/what-are-taxes\/\">Our article entitled&nbsp;<em>What Are Taxes<\/em><\/a>&nbsp;can provide a quick refresher for those who need it.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>This post was made in partnership with We Love Media Ltd.<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Disclaimer: I am not any sort of investment or financial professional giving any sort of legal advice. I\u2019m just some guy trying to teach other people about how they might navigate the financial world.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Are You an Expat Living in Canada? Here&#8217;s How to File Your Taxes Credit:&nbsp;DrJenkins365&nbsp;under&nbsp;CC0 1.0&nbsp;&#8211; no changes were made to the image] There are many enticing reasons to move to Canada. First, it&#8217;s one of the world&#8217;s most accepting countries for migrants. The government offers residents free healthcare, paid maternity leave, and paid statutory holidays&#8230;.<\/p>\n","protected":false},"author":159998696,"featured_media":3922,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1492,1498],"tags":[1608,1609,1497,1427],"_links":{"self":[{"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/posts\/3917"}],"collection":[{"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/users\/159998696"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/comments?post=3917"}],"version-history":[{"count":1,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/posts\/3917\/revisions"}],"predecessor-version":[{"id":4055,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/posts\/3917\/revisions\/4055"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/media\/3922"}],"wp:attachment":[{"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/media?parent=3917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/categories?post=3917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/tags?post=3917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}