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Americans living in Canada face looming IRS tax deadline
The Globe and Mail ^ | June 11, 2013 | ROMA LUCIW

Posted on 06/11/2013 8:34:41 PM PDT by rickmichaels

The deadline for Americans living in Canada to file a tax return with the U.S. Internal Revenue Service is less than a week away, but not everyone is scrambling to get their paperwork in order.

“I’m not filing U.S. taxes,” says a Calgary resident we’ll call Joe. “As an accidental American, I’m outraged that a foreign government is going after me for the fact my Canadian parents had me in the U.S. and only stayed there for a few short months.”

(Excerpt) Read more at theglobeandmail.com ...


TOPICS: Canada; Government
KEYWORDS: canada; expat; expattaxes; irs; tyranny
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1 posted on 06/11/2013 8:34:41 PM PDT by rickmichaels
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To: Toddsterpatriot; Mase; expat_panama; 1010RD

This is an outrage. Let’s figure-out a way to increase taxes upon ourselves, via tariffs or something, in order to make this right.


2 posted on 06/11/2013 8:38:32 PM PDT by 1rudeboy
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To: rickmichaels

Interesting. I don’t blame the guy who was born in American and moved away soon after. I don’t see why he should have to pay American Taxes either. Is he working for an American company? Even then, I don’t thing they should have to pay. They are not even living in America. Heck 47 percent of people living in American don’t pay taxes. Certainly people living in Canada should be exempt.


3 posted on 06/11/2013 8:39:25 PM PDT by napscoordinator (Santorum-Bachmann 2016 for the future of the Country!)
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To: 1rudeboy

lol.


4 posted on 06/11/2013 8:39:55 PM PDT by napscoordinator (Santorum-Bachmann 2016 for the future of the Country!)
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To: rickmichaels

But they won’t crack down on Illegal Immigrant tax cheats. They welcome them and now they will get citizenship with all the perks and won’t have to pay back taxes.

Why should “Joe” pay when the cheats in Washington are giving it away? Why should any of us pay anymore?


5 posted on 06/11/2013 8:41:03 PM PDT by machogirl (First they came for my tagline)
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To: Squawk 8888
The I.R.S.

Reason Numero Uno why Canada should annex us Ping.

6 posted on 06/11/2013 8:41:47 PM PDT by KC_Lion (Build the America you want to live in at your address, and keep looking up.-Sarah Palin)
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To: napscoordinator

All he has to do is renounce his US citizenship. There is a process. But he probably comes across the border a few times and doesn’t want to jeopardize that in any way.


7 posted on 06/11/2013 8:42:45 PM PDT by BipolarBob
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To: napscoordinator

So true, so true.


8 posted on 06/11/2013 8:43:38 PM PDT by doc1019 (There is absolutely no difference between pro-choice and pro-abortion.)
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To: BipolarBob

Even if you “renounce,” you’re still on the hook for maybe ten years’ worth of income.


9 posted on 06/11/2013 8:44:52 PM PDT by 1rudeboy
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To: rickmichaels
“As an accidental American, I’m outraged that a foreign government is going after me for the fact my Canadian parents had me in the U.S. and only stayed there for a few short months.”

This guy could have a problem particularly if he ever tries to enter the US.But there *is* good news for him...it is possible for him to formally renounce his citizenship but,IIRC,doing so would make him ineligible to enter the US.And BTW...my understanding is that the US is one of only a handful of countries that taxes it's citizens on worldwide income *regardless* of the income's source.I think that's beyond stupid.

And I wonder if he knows that Americans who just happen to have a child in Canada get a child who is automatically a Canadian citizen.So if Canada ever enacts a draft,for example,such a child might be subject to it even though he lives in the US and considers himself to be completely American.

10 posted on 06/11/2013 8:45:32 PM PDT by Gay State Conservative (Leno Was Right,They *Are* Undocumented Democrats!)
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To: KC_Lion

The Mouse That Roared, or perhaps The Moose That Roared, eh?


11 posted on 06/11/2013 8:45:36 PM PDT by A Formerly Proud Canadian (I once was lost but now I'm found; blind but now I see.)
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To: 1rudeboy

I don’t see how that would be justified.


12 posted on 06/11/2013 8:46:42 PM PDT by BipolarBob
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To: napscoordinator

You don’t think someone who is working for an American company should have to pay either.....hahahahaha....we lived (and husband worked) in Canada for 5 years....you VILL PAY Taxes....and luckily his employer took care of the extra costs incurred, ie double taxation. Although, the CPA’s who did the taxes for us could barely speak English (Asian)...I could tell stories...


13 posted on 06/11/2013 8:48:29 PM PDT by goodnesswins (R.I.P. Doherty, Smith, Stevens, Woods.)
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To: BipolarBob

Don’t mean to be short with you, but perhaps you should familiarize yourself with USC Title 26.


14 posted on 06/11/2013 8:48:46 PM PDT by 1rudeboy
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To: Gay State Conservative
it is possible for him to formally renounce his citizenship but,IIRC,doing so would make him ineligible to enter the US.

Oh wow!! That's scary. 20 million illegals found their way across. I'll blend in.

15 posted on 06/11/2013 8:48:49 PM PDT by BipolarBob
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To: KC_Lion
Reason Numero Uno why Canada should annex us Ping.

Two arguments against that...1) bacon...2) A speed limit sign I saw there once said 100.I did 100 and got a ticket!

16 posted on 06/11/2013 8:50:55 PM PDT by Gay State Conservative (Leno Was Right,They *Are* Undocumented Democrats!)
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To: rickmichaels

Isn’t he already being taxed in Canada - if so he should refer the IRS to the Canadian Government. How can a person be taxed twice on the same income? What service will he get for his money if he does pay - a passport.

Mel


17 posted on 06/11/2013 8:50:59 PM PDT by melsec (Once a Jolly Swagman camped by a Billabong.)
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To: rickmichaels

This is so wrong. Anyone who did not reside, own property or earn income in the U.S. in 2012 should only have to abide by the tax laws in the country in which they reside.

Why doesn’t the IRS go after the millions of illegals who are paid tax free cash for their work in the U.S. and send billions of dollars to their country of origin? They could start by collecting 35% from all wire transfers and payments made by Western Union.


18 posted on 06/11/2013 8:52:32 PM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: BipolarBob
Oh wow!! That's scary. 20 million illegals found their way across. I'll blend in.

A talk show host in Boston has a great saying..."I don't want special treatment,just treat me like an illegal alien".And also,I think it's closer to 30 million.

19 posted on 06/11/2013 8:53:21 PM PDT by Gay State Conservative (Leno Was Right,They *Are* Undocumented Democrats!)
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To: melsec

Many countries have treaties covering such things.If this guy files a yearly 1040 he’d probably pay nothing to DC unless he had an income over the built in exemption...which is pretty hefty.But the bother of just filing is bad enough.


20 posted on 06/11/2013 8:56:42 PM PDT by Gay State Conservative (Leno Was Right,They *Are* Undocumented Democrats!)
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To: goodnesswins

I guess you are right. I was not sure if it was an American company. Flat tax would be much better for all concerned.


21 posted on 06/11/2013 8:56:54 PM PDT by napscoordinator (Santorum-Bachmann 2016 for the future of the Country!)
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To: napscoordinator

yep a flat, sales tax would get everyone, even the illegals and visitors. you decide how much tax you want to pay by deciding what to buy.


22 posted on 06/11/2013 9:02:30 PM PDT by machogirl (First they came for my tagline)
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To: machogirl

Love that so much which of course is the reason it will never happen.


23 posted on 06/11/2013 9:04:00 PM PDT by napscoordinator (Santorum-Bachmann 2016 for the future of the Country!)
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To: Grams A
hy doesn’t the IRS go after the millions of illegals who are paid tax free cash for their work in the U.S. and send billions of dollars to their country of origin?

Illegals fulfill a purpose. If you want to build communism in your country, but you don't have enough communists, what do you do? You import them, of course! That's the purpose of illegals. They are coddled, but only while they are useful. The government knows how to be harsh, and it has plenty of ammo to insist on its viewpoint.

A foreigner who doesn't work or live in the USA can be, and will be taxed just because the US government wants his money. No other excuse is needed; robbers never worry about such things. The primary purpose of the government, as it seems, is collecting taxes and fighting its enemies among the citizens, as the citizens are the most dangerous foe. AQ in Afghanistan? It's not even funny. AQ can't hurt the government. Only the people of the country can.

24 posted on 06/11/2013 9:06:49 PM PDT by Greysard
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To: Gay State Conservative

A draft will never happen in Canada. Prime Minister MacKenzie King tried it in WWII; was popular in all parts of Canada except Quebec, where it was hated because they considered it a (maudit) ‘English’ war.

As a political sop to the Quebeckers, MacKenzie King’s election slogan in 1942 was, “Conscription if neccessary, but not necessarily conscription.”; typical Liberal double speak! Those who were conscripted but refused to go overseas were known as the ‘Zombies’. They were reviled in most of Canada, since so many Canadians volunteered for service in Europe.


25 posted on 06/11/2013 9:07:16 PM PDT by A Formerly Proud Canadian (I once was lost but now I'm found; blind but now I see.)
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To: Gay State Conservative
my understanding is that the US is one of only a handful of countries that taxes it's citizens on worldwide income *regardless* of the income's source

Yup. Happened to me when I worked in Canada.

What's more, my Canadian wife has to file a banking statement with the IRS showing a small savings account up there (5000 bucks) or the Canadian bank will be black listed from doing business down here.

And that same Canucklehead wife will lose most of her inheritance when I die (if first, that is) as she is not an American citizen (so we have trusts set up like crazy).

Other than that, no one has their claws on our financial testicles.

26 posted on 06/11/2013 9:22:06 PM PDT by llevrok (Joe Biden is the Fredo Corleone of the Obama crime family.)
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To: Gay State Conservative
my understanding is that the US is one of only a handful of countries that taxes it's citizens on worldwide income *regardless* of the income's source

Yup. Happened to me when I worked in Canada.

What's more, my Canadian wife has to file a banking statement with the IRS showing a small savings account up there (5000 bucks) or the Canadian bank will be black listed from doing business down here.

And that same Canucklehead wife will lose most of her inheritance when I die (if first, that is) as she is not an American citizen (so we have trusts set up like crazy).

Other than that, no one has their claws on our financial testicles.

27 posted on 06/11/2013 9:22:22 PM PDT by llevrok (Joe Biden is the Fredo Corleone of the Obama crime family.)
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To: goodnesswins
used to work up there myself. I know exactly of what you say. Like you, I did three tax returns (BC, Canada then US). If I hit an exclusionary level, no US tax to pay BUT a hefty CPA bill (all Chinese too). Those costs were not expensable on my US return.

What a pain in the arse.

28 posted on 06/11/2013 9:27:17 PM PDT by llevrok (Joe Biden is the Fredo Corleone of the Obama crime family.)
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To: napscoordinator

too logical therefore must fail


29 posted on 06/11/2013 9:27:30 PM PDT by machogirl (First they came for my tagline)
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To: Gay State Conservative

reason three - better hockey, eh?


30 posted on 06/11/2013 9:30:26 PM PDT by llevrok (Joe Biden is the Fredo Corleone of the Obama crime family.)
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To: KC_Lion; Clive; exg; Alberta's Child; albertabound; AntiKev; backhoe; Byron_the_Aussie; ...
We have a plan.

To all- please ping me to Canadian topics.

Canada Ping!

31 posted on 06/11/2013 9:32:47 PM PDT by Squawk 8888 (I'd give up chocolate but I'm no quitter)
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To: 1rudeboy

We didn’t have these tax issues when the US government raised revenue solely from tariffs...only when the 16th Amendment was passed did this start to happen.

You have less government with tariffs than you do with free Trade and Income Taxes...and the more we do with the former always means more of the latter....

Hey, the EU works /s


32 posted on 06/11/2013 9:36:02 PM PDT by SeminoleCounty (Don't Blame Me For La Raza Rubio....I Voted For Alex Snitker)
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To: rickmichaels

Why do I suspect “Joe” has a US passport in addition to his Canadian passport or at the vary least has not renounced his US citizenship. That is all he needs to do.

Renounce and his problem is solved. If he has not renounced, then there must be some benefit for him.


33 posted on 06/11/2013 9:39:20 PM PDT by JLS
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To: 1rudeboy
Taxes in Honduras

See below for more information on taxes in Honduras.

Income tax: Foreign residents living on their foreign income, including pensions, are not subject to income taxes on their foreign income. Only the income earned in Honduras will be taxed. Income tax rates run from 10% to 25%.

Capital gains tax: Capital gains earned by non-residents from selling real property located in Honduras are taxed at a fixed rate of 10%.

Sales tax: The sales tax rate in Honduras is 12%.

Learn more about Honduras and other countries in our daily postcard e-letter.

Simply enter your email address below and we’ll send you a FREE REPORT- Island-living at an Affordable Price in Honduras.

34 posted on 06/11/2013 9:46:10 PM PDT by Bronzy
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To: JLS

“Why do I suspect “Joe” has a US passport in addition to his Canadian passport or at the vary least has not renounced his US citizenship. That is all he needs to do.”

Screw them all! When I lived overseas, I had to file tax returns for both countries. If these guys are US citizens living overseas, they have to do the same.

And what is this BS about green card holders that live overseas. If they are out of the country for more than 6 months, their green card is revoked, according to the immigration agreement for getting a green card in the first place.


35 posted on 06/11/2013 10:53:44 PM PDT by VanShuyten ("a shadow...draped nobly in the folds of a gorgeous eloquence.")
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To: rickmichaels

I have asked a Canadian lawyer about this. American citizens born in the U.S.of at least one Canadian parent, may claim Canadian citizenship. This applies only to first generation childenl


36 posted on 06/11/2013 11:46:28 PM PDT by navyblue (<u>)
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To: BipolarBob

He does have to renounce his Americn citizen ship. Born of Canadian parents, he can claim Canadian citizenship through his parents and have dual citizenship. So says a Canadian i8migration lawyer wit whom I spoke.


37 posted on 06/11/2013 11:54:37 PM PDT by navyblue (<u>)
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To: navyblue

does NOT


38 posted on 06/12/2013 12:04:12 AM PDT by navyblue (<u>)
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To: Gay State Conservative

Still that is the price of actually being a citizen so it is not as big a deal (unless he is very rich) as made out to be!

Mel


39 posted on 06/12/2013 1:04:55 AM PDT by melsec (Once a Jolly Swagman camped by a Billabong.)
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To: A Formerly Proud Canadian

“Those who were conscripted but refused to go overseas were known as the ‘Zombies’. They were reviled in most of Canada, since so many Canadians volunteered for service in Europe.”

Their mother country (France) wasn’t fighting; why would they?


40 posted on 06/12/2013 3:28:23 AM PDT by kearnyirish2 (Affirmative action is economic war against white males (and therefore white families).)
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To: napscoordinator

I think the question may hinge on whether he has a U.S. Social Security number. If he does, then his birth in the U.S. was more than just an incidental question of timing while his parents were in the U.S. for a few short months.


41 posted on 06/12/2013 4:12:16 AM PDT by Alberta's Child ("I am the master of my fate ... I am the captain of my soul.")
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To: goodnesswins
Having been through this before, I can tell you that there is no "double taxation" between the U.S. and Canada. When you are a U.S. citizen living in Canada you file a U.S. tax return and pay U.S. taxes, but when you file a Canadian return you get a credit for what you paid to the IRS. It's not much different from someone who lives in one U.S. state and works in another and has to file state income tax returns.

The only cost involved in this "double taxation" is the cost of filing two separate tax returns.

42 posted on 06/12/2013 4:15:14 AM PDT by Alberta's Child ("I am the master of my fate ... I am the captain of my soul.")
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To: BipolarBob
All he has to do is renounce his US citizenship. There is a process.

A friend of mine did that.  Very expensive process, applying alone is a few thousand bucks w/ no guarantees.

43 posted on 06/12/2013 4:17:12 AM PDT by expat_panama
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To: 1rudeboy

He may have been born in the land of the free but he’ll have to pay for it the rest of his life. I mean, somebody’s got to cover the cost of all those Obamafones...


44 posted on 06/12/2013 5:20:39 AM PDT by expat_panama
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To: expat_panama

Sop what do you do? What would you recommend for someone thinking of leaving the US to escape taxes?


45 posted on 06/12/2013 5:46:05 AM PDT by BipolarBob
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To: A Formerly Proud Canadian
A draft will never happen in Canada. Prime Minister MacKenzie King tried it in WWII...

No,no...I wasn't suggesting that Canada was going to have a draft,I just used that as an example of what can happen to "dual citizens".Being a dual citizen myself (US/Ireland) I've done some reading on the subject,including on some of the unexpected,unpleasant things that can happen.Our State Department,for example,warns dual citizens that one possible danger they might experience is,when entering the country of their other citizenship,they might be "drafted" into the army if that country has any kind of mandatory military service laws...as some still do.

On a side note...I recently developed a curiosity about a town in northern Vermont called Derby Line,which sits right on the Canadian border and which has a library that's literally *on* the border (Haskell Library..look it up...fascinating).I read that many people living in the town on the Canadian side are dual citizens because for many years the only nearby hospital was in/near Derby Line so many of the town's kids were born in the US.So,at least with the US and Canada dual citizenship isn't a particularly unusual situation.

46 posted on 06/12/2013 5:57:10 AM PDT by Gay State Conservative (Leno Was Right,They *Are* Undocumented Democrats!)
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To: kearnyirish2

What the hell kind of comment is that?

A) France isn’t the mother country.

B) Canada has fought in both world wars years before US started.


47 posted on 06/12/2013 5:57:16 AM PDT by Bulwyf
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To: Bulwyf
A) France isn’t the mother country.

I saw a speech on youtube given by the Canadian PM (Harper,IIRC) in which he stated that Canada had *two* mother countries.Also,I wouldn't be surprised if many French Canadians considered France to be the "mother country".

48 posted on 06/12/2013 6:07:48 AM PDT by Gay State Conservative (Leno Was Right,They *Are* Undocumented Democrats!)
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To: BipolarBob
What would you recommend for someone thinking of leaving the US to escape taxes?

donno. 

Thing is that imho in most cases it's really not a problem, that overseas earnings are pretty much nontaxed anyway, and filing is free on line.

49 posted on 06/12/2013 6:30:32 AM PDT by expat_panama
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To: Gay State Conservative

Canada has been complaining about this for at least two years. I remember a story where a woman’s family migrated to Canada when she was a child and became Canadian. In her 30s, the IRS starts demanding taxes from her - and her now working teenaged children who were born in Canada.


50 posted on 06/12/2013 6:36:15 AM PDT by tbw2
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