I have dual citizenship in the USA and Canada. Do dual citizens pay taxes in both countries?
This is a tough one to an. Cross-border tax for Dual Citizens of the U.S. and Canada can get very complex and challenging especially for dual citizens residing in Canada. The dual citizenship has its perks but can become difficult when it comes to filing taxes in both the U.S. and Canada due to risks of double taxation, foreign reporting obligation, investments, retirement and continuous upkeep of the laws.
Most often, you will need to pay some taxes in both countries, but it depends on your assets. Regardless, there are a few key things to look out for.
There are 3 Main Tax Issues Impacting Dual US-Canadian Citizens You Should be Aware of…
While these obligations and requirements can lead to penalties if action is not taken, it is often difficult to resolve without the help of an accountant who specializes in Cross Border Tax.
I go into further detail on this in our firm blog: 3 Important Tax Issues for a Dual-U.S. Canadian Citizen