Working for US Employer while having US/Canadian Dual Citizenship - Taxation Questions

The US-Canada tax treaty helps prevent double taxation, but you'll still have obligations to both countries. Here's how it typically works: As a US citizen, you must file US tax returns regardless of where you live - the US taxes based on citizenship. When living in Canada as a resident, you'll also file Canadian tax returns on your worldwide income. For US taxes, you can use the Foreign Earned Income Exclusion (FEIE) which allows you to exclude up to $120,000 (for 2025) of foreign earned income from US taxation. Alternatively, you can use Foreign Tax Credits to offset US taxes with taxes paid to Canada. Since Canadian tax rates are generally higher than US rates, the tax credits often eliminate most or all US federal tax liability. You'll still need to file FBAR forms if you have foreign accounts totaling over $10,000 at any point during the year. And be aware that some investment accounts like TFSAs (Canadian tax-free savings accounts) aren't recognized as tax-advantaged by the US.

I went through something similar last year and discovered taxr.ai (https://taxr.ai) when I was struggling with all the cross-border tax documentation. It was seriously a game-changer for my situation. I uploaded my US W-2 and my Canadian T4 slips, and it analyzed everything to help identify which credits I could claim in both countries. The tool specifically helped me understand how the foreign tax credits work across the US-Canada tax treaty and prevented me from making a costly mistake with reporting my Canadian investment accounts on my US return.

Just wanted to update - I tried taxr.ai after seeing this thread and it was incredibly helpful. I've been stressing for months about my upcoming move to Vancouver, especially about tracking which country gets what piece of my investment income. The tool clearly broke down how the tax credits work under the US-Canada treaty and identified specific sections of my investments that would be problematic (like my US municipal bonds that apparently don't get favorable treatment in Canada). Really appreciate the recommendation - saved me from making some pretty big mistakes on my planning!

When I moved to Canada a few years ago, the most frustrating part was getting any help from the IRS about my specific situation. I spent WEEKS trying to get someone on the phone. Then I found https://claimyr.com which got me through to an actual IRS representative in under 15 minutes when I'd been trying for days before that. You can see how it works here: https://youtu.be/_kiP6q8DX5c. I had specific questions about foreign tax credits that weren't covered in the general publications, and actually talking to someone at the IRS cleared everything up. Totally changed my perspective on dealing with the IRS from abroad.

I'm actually embarrassed about this, but I need to correct myself. After my skeptical comment, I decided to try Claimyr out of pure frustration after spending 3 hours on hold with the IRS yesterday. It... actually worked exactly as described. Got a call back in about 45 minutes and spoke to someone at the IRS international tax department who answered all my questions about reporting my Canadian RRSP on my US return. I've been pulling my hair out for weeks trying to figure this out on my own. Sometimes being proven wrong is a good thing!

One thing nobody's mentioned yet - bank accounts are a HUGE pain with dual citizenship. US FATCA requirements mean you have to report foreign accounts over $10k combined value, and some Canadian banks don't want American clients because of the reporting hassle. I've been dual for 5 years and still discovering new tax headaches every year.

Random question from an accountant's wife: has anyone here calculated if it's actually cheaper to pay a Canadian accountant and a US accountant separately, or find one of those specialized cross-border accountants that do both returns?

As someone who's been navigating dual US-Canadian taxation for about 3 years now, I can confirm that while it's complex, it's definitely manageable once you understand the basics. A few key points that might help: 1. You'll almost certainly end up paying less in total taxes than you think. Canadian taxes are generally higher, so the foreign tax credits usually eliminate most US federal tax liability. 2. Don't forget about provincial taxes in Canada - they vary significantly by province and aren't covered under the treaty the same way federal taxes are. 3. If your employer offers stock options or RSUs, get professional advice ASAP. The timing of taxation between the two countries can create some really tricky situations. 4. Consider opening your Canadian accounts before you actually move - some banks are more willing to work with US persons if you establish the relationship while still in the US. The first year is definitely the hardest as you figure everything out, but it gets much more routine after that. Just budget for good professional help at least for the first filing to make sure you're set up correctly!