Taxes Double Suck when you are on a TN Visa
January 29th, 2009
One thing that is great about the US, is the lower tax rate. However if you are there on a TN, and are Canadian, then that advantage doesn’t apply. A Canadian has to report his universal income. So although the US doesn’t tax me a lot, Canada wants the difference.
So here is the bottom line. Every penny paid in taxes abroad receives a credit towards the Canadian tax man. As long as one is on a TN, taxes need to continue being paid to the Canadian Government. The only way around it is to stop being a Canadian permanent resident. However, there is no dual intent with a TN Visa. Although you can begin the process from the US, you have to eventually go back to Canada to fulfill the process.
The only way around it is to either have the company get you an H1-B so that you can stay in the US while you apply for a Green Card, or go home.
In the meantime, at least you can go see a doctor for free back home.
