Living in Canada vs USA?

Tax Rate working in USA Living in Canada?

• Hi All I am a Canadian working in USA full time working on a ship in USA waters my rotation is 6 weeks work, 6 weeks home in Canada, i have no ties to USA only work there i spend about 183 days at work and 8 days of travel so around 191 days total for pay also i work for a Canadian company, so what would be my USA/Canadian tax rate on about $147,000 per year Canadian i live in Newfoundland and don't really have a state in USA because I live on the ship and its foreign flagged but the company who owns the ship is American out of Louisiana,i would just like a ball park figure if anyone knows Thanks

• Answer:

  OK, you are confusing us. Is the company that pays you for your work on the ship Canadian or American? And is this the $147K? Or do you have another job with "a Canadian company"? You say that the company that owns the ship is American, though. Very confusing. As far as US taxes, you are likely a Non-Resident Alien, since days spent working on a ship in US waters do NOT count towards your days-present test. However, as a NRA, you are still taxed in the US on US-source income. You therefore need to determine whether the ship income is considered US-sourced or not. Regardless, whatever you pay on your 1040-NR will be credited as a Foreign Tax Credit on your Canadian T1 return. More info on NRA status is found in Publication 519: http://www.irs.gov/pub/irs-pdf/p519.pdf As for Canadian taxes and rates, you don't say if you are single or married, or have dependents. You can input all these variables at the following tax calculator here: http://www.taxtips.ca/calculators/taxcalculator.htm If you are single, you will find your INCOME tax rate is approximately 37%. A Canadian company will also deduct CPP and EI. A US company will deduct Social Security and Medicare.