Living in Canada/Flying for US-based Airline

[leftseat10]

Anyone fly for an US-based airline and live in Canada? My wife's Canadian and we are exploring this option, probably with FedEx or UPS, since both have regualrly-scheduled routes to Canada. Mainly looking for tax-related implications of living abroad while working for a US airline. Thanks for any info!

 

[FoxHunter]

The IRS considers your Base as your tax home. If you work for FedEx you can live any place in the world, but you pay the same federal income tax as you would if you lived in Memphis.

 

[Vik]

I would ask on a CPA forum. I don't completely agree with FoxHunter but I don't have anything to add unfortunately.

Anyone fly for an US-based airline and live in Canada? My wife's Canadian and we are exploring this option, probably with FedEx or UPS, since both have regualrly-scheduled routes to Canada. Mainly looking for tax-related implications of living abroad while working for a US airline. Thanks for any info!

 

[twgordy]

Hunter,
How about those guys at Federal Express that fly out of Subic Bay and have their first 70K tax free?

 

[amcnd]

lived in both for a while, but never claimed a address in Canada. If you live more then 6 months a year in canada you have to pay tax's, but you can get your Fed tax pro rated. Always keep a US address it will save you time and money. The exchange rate to CAD is bad right now also. So its more of a sumer home now.

 

[Vik]

Transfer residences to Monaco w/ your airline, but live in Canada and keep moving every 6 months.

no taxes! heh.

 

[AirBoard]

Anyone fly for an US-based airline and live in Canada? My wife's Canadian and we are exploring this option, probably with FedEx or UPS, since both have regualrly-scheduled routes to Canada. Mainly looking for tax-related implications of living abroad while working for a US airline. Thanks for any info!

You'll be taxed as a non-resident in your state that you work or keep an address - find a relative in FL, TX, TN etc.....You'll file Cdn taxes and get a credit for US taxes paid. There's a tax treaty between the two countries so you won't get double taxed. If you use all Cdn tax write offs you can make it work but the bracket will still be higher - about 35% for 100K+. But then there's the social benefits as my wife is off for 1 year 50% maternity. And it's **CENSORED****CENSORED****CENSORED****CENSORED** cold.

BTW, you seem confident you'll line up Fed Ex, UPS must be nice. Cheers.

 

[thruthemurk]

The IRS considers your Base as your tax home. If you work for FedEx you can live any place in the world, but you pay the same federal income tax as you would if you lived in Memphis.

This is incorrect. The IRS considers your declared residence as your tax home. IF you invent residences in a tax free state to dodge tax they will possibly catch you - but you have no obligation to use your base as your tax residence.

Brian

 

[Vik]

Buy a duplex in Nevada and keep the smaller portion of it as your primary residence. No state income tax.

 

[FoxHunter]

This is incorrect. The IRS considers your declared residence as your tax home. IF you invent residences in a tax free state to dodge tax they will possibly catch you - but you have no obligation to use your base as your tax residence.

Brian

There were quite a few Flying Tiger that lived in the Bahamas and Jamaica during the early 80s and claimed residence. It took a few years but the IRS finally caught up with most of them and they had huge tax bills for the years they claimed foreign residence and the associated exemption.

Suggest you read, "Tax Home" is defined on the first page
http://www.irs.gov/pub/irs-pdf/p463.pdf