Permanent Resident - Income Tax

[stockcarsrus]

I just received my permanent resident card at the end of 2005. I am from Canada. My husband heard that another Canadian man that lives near us never had to pay income tax for 7 or 8 years because of some treaty or law... ? He wanted me to find out if this was true. I have been paying taxes since I started working in the US, and not sure what to believe. Thanks for any input

[Kayalami]

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.