Scenario
1. I and my family are permanent residents (green card holders) in US. We file taxes in US as “Married filing jointly”
2. In future, I may be working in Canada on Canadian Work Permit, and Canada contract. In which case, I will be earning wages in Canadian $’s and deducting tax there, and traveling frequently back to US. I will be renting an apartment in Canada.
3. My spouse will continue work in the US. My spouse and the family will continue to be in US. She will be earning wages and deducting tax in US. My family will maintain a home in US.
Indicative approach to taxes - my understanding
1. In Canada, I will be deducting taxes on my Canadian wages which will be reported in T-4. I will file taxes as a resident in Canada on my Canadian income.
2. In US, I will be considered a resident for tax purposes since my spouse lives in US and I have a green card, and we will continue to jointly file taxes as US residents under “Married filing jointly” category.
3. Generally speaking, it is expected that I will be able to completely offset taxes paid in Canada with my US Federal tax liability
4. In US, I will incur additional tax liability on account of State tax.
5. In Canada, public healthcare is available but additional private health insurance is required for dental, vision and medicines.
6. Question 1 – Is the above description to taxes and costs involved fairly accurate? Am I missing anything from a regulatory stand point or are there any aspects which have financial implications?
7. Question 2 - Will I be required to OR be able to contribute to Medicare and Social security tax in US if I want to to clock the minimum 10 years of contributing to FICA as soon as possible? If yes, will it be payable at the end of the year when I file taxes in the US and how will I deposit it?
8. Question 3 – Can TurboTax handle the filings as described in both US and Canada?
