Terry Smith - The Tax Pro

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Canadian Tax Returns

After living in Canada for many years Terry Smith (the San Diego Tax Pro) keeps up with the Canadian tax system. Terry says “Canadian taxes are similar to the United States in that they want your worldwide income reported, but that’s about where it stops.

The basic rate is 28% of your income, as opposed to the several tax brackets for US tax.

Only 2 provinces have an income tax, as opposed to 43 states having their own tax brackets.

However, just like the United States, Canada does allow for a “Foreign Tax Credit” in which you can basically wipe out your tax bill so that you won’t be double taxed for income from two countries. If you have US income and Canadian income, you will have to file 2 separate tax returns to cover the separate income and maximize your Foreign Tax Credit from both countries.” So you can feel comfortable working on your Canadian taxes in San Diego with The Tax Pro.