All of the information you need, right here, right now.
Reading Time: 4 minutes Whether you’re working with an in-house accounting team, a consultant, or a qualified CPA, you’re bound to get a good amount of advice. Like any
Reading Time: 3 minutes Accounting ecosystems are incredibly complex, and getting an accurate financial picture of your business relies on accurate date, following processes that ensure the accuracy of
Reading Time: 5 minutes As with all matters financial, doing your taxes can be incredibly stressful. Between understanding tax codes and regulations to making sure you have the right
Reading Time: 4 minutes If you are considering a merger, acquiring another company, or prepping your business for sale, a business valuation is a critical component of the process,
Reading Time: 2 minutes As next we enter the final 5 months of the year, it’s important to reflect on what the first half of 2023 has entailed, what
Reading Time: 3 minutes If there’s anything the internet has provided us with, it’s seemingly infinite options. Type “local CPA near me” into any search platform and you are
Reading Time: 4 minutes There are three main tiers of businesses in the United States: Small Businesses, Mid-Sized Businesses, and Enterprise Level Businesses. Each category is typically determined by
Reading Time: 3 minutes Managing your business or personal finances can get complicated quickly, and it’s common for individuals and businesses to reach a point where they realize they
Reading Time: 2 minutes Technically, yes. But, there are some limitations. When Bookkeepers Do Tax Returns Bookkeepers have an important role in tax preparation, and not just during tax
Reading Time: 2 minutes Accounting is a critical function in any business, and having a solid accounting strategy is essential for the success of the organization. An accounting strategy
Reading Time: 3 minutes Self Employment Tax Vs Income Tax
Reading Time: 3 minutes If you are a business owner, then you have to pay your employees. This means that you have to worry about payroll taxes. These taxes
Reading Time: 3 minutes An important note: depending on the type of extension you are looking to file, you may need to submit additional forms. We highly recommend speaking
Reading Time: 5 minutes The IRS received over $4.1 trillion in tax revenue in 2021. If you don’t pay the full amount owed on your taxes, you will be
Reading Time: 4 minutes Any improvement that significantly increases the value of your home and extends its useful life is considered a home improvement. If you tear down your
Reading Time: 4 minutes The IRS has millions of tax refunds to process, which is why it could take longer than expected to get your refund. The IRS usually
Reading Time: 4 minutes A CPA provides expertise in the financial industry. Businesses often hire them to manage tax planning, financial forecasting, and defending any issues in front of
Reading Time: 3 minutes The short explanation lies in the statement all CPAs are accountants, but not all accountants are CPAs. While it’s easy to get the two confused,
Reading Time: 5 minutes If you don’t file your taxes on time, you will be liable to pay penalties in addition to the taxes you owe. This statement may
Reading Time: 4 minutes Each tax season, many business owners and individuals discover they owe the IRS late filing penalties and/or late payment penalties. But, more often than not,
Reading Time: 5 minutes Filing your tax returns can be a very overwhelming process. The situation can add to the complexity when you file an extension for your tax
As an international firm with offices in Houston and Toronto, our certified tax professionals can help you with US Tax compliance and tax consultancy for tax savings. We are here to help so contact us now.
Empower your organization by putting your finances to work. Our experts help you navigate urgent challenges and a fluctuating economy while improving shareholder value and maximizing business performance.
…or any US resident or citizen living anywhere else in the world, income tax returns need to be filed in the US using the customary Form 1040. This can be filed either separately or jointly (if married).
If you are employed by a US company in Canada, then you fall under the Canada US Income Tax Convention. This means that your employment income is exempt from taxation by Canada unless it is above $10,000 per year. If higher than $10,000, your income is exempt if:
The individual resided in Canada for less than 183 days in any Calendar year
The exemption is not borne by a Canadian citizen or a Canadian resident employer with a fixed base in Canada
If you are self employed US citizen/resident in Canada, aside from filing Form 1040 and Schedule C in the US to declare your worldwide earnings there are other things involved. Based on your current residence, you are required to either pay the US’s self-employment tax (15.3% for incomes up to $118,500) or Canadian Pension Plan (CPP) premiums to cover your social security taxes.
Whether you are considered employed or not in Canada is dependent on whether your primary work place falls under the definition of “Permanent Establishment” as per the Canada-US Tax Treaty.
As a proven resident of both countries, you are at risk for double taxation on your worldwide earnings if you are not careful. The Canada US Income Tax Convention provides solutions for this.
As a U.S citizen or resident alien having a tax home in a foreign country (i.e., place of business/employment permanently or indefinitely based in a foreign country) and meeting the criteria of either the Bona Fide Residence Test or Physical presence Test, you can elect “Foreign Earned Income Exclusion”.
Foreign housing cost is also excludable for payments made by an employer either on your behalf or as a reimbursement for incurred housing cost. This amount is taxable foreign earned income. (Availing this may in some cases offset your earned income exclusion).
Foreign Tax Credits (FTC): If you are a US citizen or expat paying foreign income taxes, the same foreign income will become a US tax liability. To alleviate that burden of 2-country double taxation, you are provided with appropriate tax credits on your US tax liability.
For assistance in planning and transferring your U.S. assets to Canada, please contact our colleague Phil Hogan, CPA, CA, CPA at (25) 661-9417 or phil@philhogan.com
