Originally Posted by
sabad66
Canada and most other countries tax based on residency. So if you live and work in the US all year you just pay US taxes
US however taxes on citizenship regardless of where you reside, so Americans living outside of the US are subject to US tax. However, tax treaties do allow you to use taxes paid in other friendly countries as credits against US taxes. Since most other countries have higher tax rates than US, your taxes paid end up essentially canceling out your US tax liability. Long story short, MOST Americans living in other countries don’t end up owing anything and the biggest “burden” is the cost/time of filing a US return. But there are certain cases where they would end up owing tax such as massive capital gains on RE, or capital gains in a TfSA (US doesn’t recognize TFSA as tax free)