4

Main question in the title.

I already received a "bonus" (was supposed to be a relocation stipend before the internship got moved to virtual). For that check, the following taxes were removed: Federal and NY withholding tax, Social Security, and Medicare tax. All in all, about 40% of the check went to taxes.

At the end of the month, I should receive a large check with all my wages for the month of July, so I want to make sure that the tax situation is worked out.

If I do have to pay U.S. tax, do I also have to pay Canadian taxes on top of that?

Any advice would be welcomed, as I never had to deal with taxes before.

  • 4
    You may get some information here, but you really need to consult an accountant or tax advisor to make sure this is handled properly. – chepner Jul 19 at 22:56
  • A quick meet with an accountant is not nearly as expensive as a lawyer. You'll want to pay the former to avoid paying the latter. – Nelson Jul 20 at 2:26
  • I'm too rusty to give a full answer without taking some time to brush up, but the good news is you shouldn't end up paying double tax. At the end of the day, you'll probably end up paying the higher of the two tax rates, and might need to file two tax returns, but one of the countries should allow you to claim the taxes paid to the other country, as a tax credit or deduction (depends how you file - again, this isn't a full answer, just trying to give you some hope). – Grade 'Eh' Bacon Jul 20 at 12:34
1

This PDF will provide some insight into international taxation policies, but like the comments said, consult a tax professional.

Per Wikipedia, Canada taxes local income, and foreign income of residents.

Also from Wikipedia:

Countries that tax income generally use one of two systems: territorial or residence-based. In the territorial system, only local income – income from a source inside the country – is taxed. In the residence-based system, residents of the country are taxed on their worldwide (local and foreign) income, while nonresidents are taxed only on their local income. In addition, a small number of countries also tax the worldwide income of their nonresident citizens in some cases.

| improve this answer | |

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.