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Working in the Canadian oil sands: 6 figures in 6 months!
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BusDev Offline
Pigeon

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Joined: Jun 2013
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Post: #1723
RE: Working in the Canadian oil sands: 6 figures in 6 months!
(09-23-2013 07:57 PM)speakeasy Wrote:  Sorry if this question has already been asked. I'm still reading through this thread and I'm investigating the hell out of this life option. As far as Americans trying to work in Canada, I know you have to pay like 25-30% of your net in taxes. But Americans unlike many countries are taxed on income earned abroad. So if Americans then had to have their earnings double-taxed, it may make it not worth it for us. Is this the case or are there ways around this?

I am a US Citizen and have worked overseas for 17 years now. You can apply the Canadian taxes toward your US tax so that you are NOT double taxed. As I work and stay outside of the US for 330 days a year, I also receive a $95,000 US Tax Credit that really helps offset any additional US taxes. Here is the IRS Website

http://www.irs.gov/Individuals/Internati...Tax-Credit

Here is another good website

http://www.jamesdance.com/us_expatriates.htm

For my current position, my company pays 30% of my gross salary to Indonesian Taxes. I take that 30% paid to Indonesian taxes and apply it to my US Taxes so that I receive credit from the US Government for paying Indonesian Taxes and I am NOT double taxed. If I am exposed to any additional US Taxes above the 30% tax rate, I then use my calculated $95k US Foreign Tax Credit to offset all additional taxes plus my normal family and investment deductions (IRA, 401k, College Fund for kid, ect..). You need to find a good CPA who is familar with US Expats working overseas to make sure that your foreign tax credit is calculated correctly so that you can apply the tax credits to your advantage. If you can stay in Canada without returning to the US for 330 days, that will make sure you qualify for the $95k US Foreign Tax Credit. FYI, I use H&R Block to do my yearly taxes. Fees to file are higher for US Expats living abroad. Normally around $500 - $700.
09-23-2013 09:41 PM
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Messages In This Thread
Risks, opportunities, import/export - OSL - 03-16-2013, 06:58 AM
RE: Working in the Canadian oil sands: 6 figures in 6 months! - BusDev - 09-23-2013 09:41 PM