US Cross-Border Tax Blog

Published by W.L. Dueck LLP

Posts filed under ‘Social Security Agreement’

Paula Owen

Moving from Canada to the US? Save Money with Canada Pension Plan

Moving to another country presents significant tax planning opportunities, especially if you are moving from Canada to the US. A commonly overlooked tax strategy for incorporated professionals and other intercompany transferees is to avoid US Social Security and Medicare by continuing their coverage under Canada Pension Plan. The tax savings can reach more than US$10,000 annually and more for up to 5 years for qualifying persons. Many taxpayers confuse Canada Pension Plan and US Social Security as investment strategies. Both… Read More


Consulting in the US – Planning in advance well worth it

Independent consultants in Canada will often incorporate their practice in order to offer some liability protection not otherwise achieved through a sole-proprietorship structure.   From a Canadian income tax perspective, the incorporated consultant will often make the choice between compensating himself by way of salary or receiving dividends from the corporation.  In addition, many year-end corporate accounting and reporting decisions are made relying on Canada Revenue Agency administrative positions. The moment the consulting activity enters the United States (or any other… Read More


Canada-United States Social Security Agreement

An often overlooked agreement between the two countries can result in significant savings for Canadians moving to the United States.  The Canada-United States Social Security Agreement (“Agreement”) provides direction to individuals on which country levies social security taxes, allows for continuation of benefits and coverage while temporarily working away and prevents both countries from levying social security taxes on the same income. A Canadian resident who is temporarily transferred from Canada to the United States continues to pay Canada Pension… Read More