provincial taxation for non-resident commuting to Canada to work -

if you live in the us and commute daily to canada to work can you avoid paying provincial tax at tax time


ps great web site full of info!
david ingram replies:

YES but that is not good. 

If you live in Washington State and commute to Oregon to work, you have to pay Oregon tax as well.

If you file as a non-resident of Canada, you do escape BC tax but pay a Higher Surtax to the Canadian Federal government than the BC tax would be.
If 90% of your income is from Canada, you can file claim 100% of your personal exemptions.



Me and my husband are US residents (and canadian citizens) on Washington state working full time in Vancouver. How can we avoid paying canadian income tax?
Thank you!

david ingram replies:

What an unusual  question.  The answer however, is easy.  You can NOT avoid Canadian tax if you are woring in Canada and earning over $10,000 as employees. 

If you were earning less than $10,000 each in canada, you coul dfile for an exemption under Art XV of the US Canada Income Tax Convention.

The following might help

QUESTION: David, I am a Canadian citizen and just got my green card.   My wife is American and works and resides in the US.  I work in Canada during the week and go back to the US on weekends.  How does this affect my tax filing?  Am I filing as normal in Canada or do I have to file in the US also? 
Your help is apreciated.
Thanks, Vince
david ingram replies:

You will file in Canada first and then report the income again on your US 1040 (maybe a joint return with your wife). Any tax, CPP and EI paid to Canada will be a foreign tax credit on the US return if you fill out form 1116.


My husband is US citizen, I am Canadian. Can we save on taxes by living in US and keeping our jobs in Canada.  Also understand that mtg int. is tax ded. in US. Thx.
david ingram replies:

Living in the US and working in Canada will cost you a lot more in expense although you may make up for it with a cheaper house, gas for your car and some groceries.

For instance, living in Washington State and working in BC will not save you any tax on your wages.  It may save you a little if you have large investment income but it would have to be over $10,000 a year to be meaningful.

The biggest problem is that you would no longer qualify for BC (or other province) medical and it would cost you anywhere from $300 to $1,500 a month to buy your own medical.

The US mortgage interest deduction is of no use to you  if you are working in Canada because you will still pay full Canadian taxes first.

And it is possible for most Canadians to arrange their affairs to make their Candian mortgage deductible.   Goto  and read the  November 2001 newsletter in the top left hand box.


david ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Cell (604) 657-8451 -

pert  US Canada Canadian American  Mexican Income Tax  service and help.

$1,200 would be the same with one rental
$1,300 would be the same with one business no rental

$1,700 would be for two people with income from two countries

This is just a guideline for US / Canadian returns
8891 forms are generally $50.00 to $100.00 each.





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