How canadian taxes work
« on: June 17, 2010, 06:12:15 am »
Please help, I am hopelessly confused!!
The facts: I am a US citizen. At the end of last year my husband and I moved to Quebec. I continued to work for my US employer remotely (will salary and benefits) from Quebec, and I was issued a visitor record. In March my husband and I put in an application for permanent residence for me, with him as my sponsor. My understanding has been that I'm a visitor in Canada and therefore not eligible for benefits (health cards) or responsible for paying taxes to Canada (I continue to pay taxes on my US income as if I live in the US). I've got a US address, receive mail there, have my car registered in the US, etc. When my PR is finally done and I land, I understand that I will have to pay, in total, the Canadian tax rate, first by paying my US taxes as usual and then by paying the difference to Canada. And I'll be eligible eventually for a health card, etc. Or that is what I understood anyway--I'll definitely be hiring a tax professional this year to
make sure about the tax questions.
Recently I was approached by a company here in Quebec that was interested in hiring me on a part-time basis as a consultant. They had an immigration specialist who helped me apply for a work permit. Because my profession falls under the list of NAFTA-exempt professions, I was able to get a work permit very easily--it was a matter of gathering the documents and going to the border. I went to the border and paid $150 and they took my visitor record and replaced it with a work permit. I still work at my regular full-time job for my US employer.
Now my question is, what are the implications of this on my tax and benefits situation? I expect that I'll owe taxes on my consulting income in Canada? Will I owe taxes to Canada on my US income as if I were a PR? Am I eligible for a Quebec health card now (or, I guess, after the waiting period)?
I need to find a tax professional to help me--SOON!--but if someone knows anything about this and could give me an idea of what I can expect, I'd appreciate it.Source: www.canadavisa.com