Question

Does an individual who has dual residency of Canada and the US, but lives and works exclusively in Canada have to file and pay US taxes?

Answer 1

Does an individual who has dual residency of Canada and the US, but lives and works exclusively in Canada have to file and pay US taxes?

Answer:-

The United States charge framework is a standout amongst the most perplexing expense codes on the planet, and it's nothing unexpected there are central contrasts between the U.S. also, Canada with respect to tax assessment.

U.S. citizens have a number of possible income tax scenarios arising from employment in Canada .

so that they pay

Double Taxation

Article XXIV of the Canada-U.S. Pay Tax Convention of 1980 spells out tenets identified with conditions where the two nations may guarantee the privilege to impose a similar salary.

This article spells out the concept that a taxpayer pays income tax to and under the rules of the country of residence, unless the taxpayer has a fixed base in the other country.

The settled base could be an office or habitation.

The standard of habitation gives fundamental settlement insurance from twofold tax collection to a U.S. national working in Canada, however there are races a citizen can make that expel arrangement assurance, for example, when the citizen or life partner is burdened only as a U.S. native.

hen a U.S. citizen is obligated to pay taxes on the same income under both Canadian and U.S. returns, double taxation usually is eliminated on line 405 of the Canadian return where the citizen can guarantee the remote assessment credit for charges paid in the U.S. on salary investigated a Canadian return.