Post
by Kayalami » Thu Jan 26, 2006 11:13 pm
Lawful Permanent Residents and US Citizens must declare/ file their worldwide income regardless of scource to the IRS. The US has taxation treaties with various countries including Canada to prevent double taxation of income i.e. if you get an income from Canadain employment and you paid Canada revenue then the IRS will not tax you again on this income. You may use any US Tax credits to offset your tax liabilities. Alo there is an overseas income threshold on which you don't get stung for tax. Perhaps this is the situation with this 'other Canadian man'.
Given the complex nature of US Income Tax Law it is best you seek some professional help with this especially if your tax affairs are complex. Such preferably from someone knowledgable on cross border tax. Note that you may continue to be a deemed resident of Canada for tax purposes so perhaps checking on this too.