The importance of earned income

After posting First Year Abroad, I received the following message on Twitter @taxsamurai Perhaps you need to place emphasis that there are other types of income than “earned income” such as foreign pension. — JC Double Taxed (@JCDoubleTaxed) September 29,...

FATCA exempt credit union (as per the IGA with Canada)

As originally seen on the Isaac Brock Society’s post  If this is accurate… : Are Other Canadian Credit Unions Being As Responsible About FATCA as Vancity? I am delighted and, as a roughly-35-years member, proud to report that Alterna Savings and Credit Union....

First Year Abroad

If you just moved abroad, you probably have a lot of questions about how to deal with the tax implication it may have. The Foreign Earned Income Exclusion and Foreign Tax Paid Credit pages will give you a more complete explanation of some of the issues you need to...

State Residency Issues

Overview Residency is a concept used by US states to determine whether you are liable to pay state income taxes. Your residence does not automatically end when you stop being physically present in that state. Generally, your “tax domicile” is the place you intend to...

Tax Treaties

Tax treaties may provide unique advantages; feel free to look at them to see if it contains something that could be useful to your specific case. Country Signed Income Tax Treaty Technical Explanation Australia 1982 63K 87K Australia Protocol   2001 35K K Austria 1996...

How can snowbirds avoid becoming US persons?

Hello snowbirds, Winter’s coming, time to move south. Will I become a US person subject to US taxation on my worldwide income? According to the domestic tax laws of the United States, the substantial presence test (“SPT”) is used to determine the residency...

Trailing Nexus

Hi, I’m going to go beyond my previous topics with this post covering Nexus. This will be applicable to those engaged in a trade or business in the United States, so corporations or self-employed people. For income tax purposes, those based in treaty countries...