Cross‑Border Tax Advisory
Canada USA Tax prepares and plans U.S. and Canadian returns for people and businesses with a foot on both sides of the border — so nothing gets filed twice, missed once, or left to guesswork.
Serving clients on both sides of the line
Why cross-border is different
Filing in one country is hard enough.
Two overlapping tax systems mean overlapping deadlines, overlapping definitions of residency, and real penalties for the paperwork most people don't know they owe.
Double taxation
The Canada–U.S. tax treaty prevents most double taxation — but only if credits, elections, and treaty positions are claimed correctly on both returns.
Disclosure penalties
FBAR and FATCA reporting carry steep penalties for late or missed filings, even when no tax is actually owed.
Mismatched rules
RRSPs, 401(k)s, TFSAs and IRAs are each treated differently by the other country — getting it backwards is an easy, costly mistake.
What we do
Tax preparation and planning, built for people who file in two countries.
Individual Tax
U.S. and Canadian personal returns, residency, rental income, investments, and property sales for people who file in both countries.
Business Tax
Structuring, corporate returns, permanent establishment, and transfer pricing for cross-border companies.
FBAR & FATCA
Foreign account, asset, affiliate, and trust reporting — the filings penalties actually come from.
Planning
Investments, retirement accounts, real estate, and moves between countries, planned under both tax systems at once.
How it works
A straightforward process, start to finish.
Discovery call
We map your residency, income sources, and filing history on both sides of the border.
Document review
You send your slips and statements through a secure channel; we flag anything missing.
Filing & compliance
We prepare and file your U.S. and Canadian returns, plus any disclosure forms required.
Ongoing planning
We stay in touch year-round so next year's filing starts from a plan, not a scramble.
What clients say
Reviewed by the people we file for.
Prasad carefully reviewed my documents, guided me through the process, and made sure I understood everything clearly. His availability and responsiveness made the whole process much easier and less stressful.
Prasad helped me file multiple years of taxes and made the whole process feel simple and stress-free. He was professional, responsive, and easy to communicate with from start to finish.
The process was seamless — he asked for specific documents, I sent them online, and he got back to me quickly with a summary before filing. No surprises, no confusion. Highly recommend.
Mr. Rao is absolutely patient and humble with the clients. He not only helped file the taxes, but also shared valuable insights of the overall process. I landed through a reference and stayed — 3 years and counting.
Sir Prasad Rao gave me the best and quickest service. Did my tax on a weekend when everyone else was saying no. Charges were also genuine. Thank you, sir.
Excellent service — fast, reliable, and professional. Thank you.
FAQ
Common questions from cross-border clients.
It's an agreement between the two countries, formally the Convention Between Canada and the United States of America With Respect to Taxes on Income and on Capital. It sets out which country has the first right to tax different types of income when a person has ties to both. That way the same income isn't fully taxed twice. The treaty also lowers withholding rates on certain payments, settles residency conflicts, and lets the two tax authorities cooperate against evasion.
They use different tests:
- Canada taxes based on residence. Canadian residents report income from all sources worldwide, whatever their citizenship. Non-residents pay Canadian tax only on certain income that comes from Canada.
- The U.S. taxes based on residence and citizenship. A U.S. citizen has to file a U.S. return every year their income is above the filing threshold, even if they've lived abroad for decades.
Usually not, but you still need to file in both countries. Canada taxes your worldwide income because you live there. On your U.S. return you report that same income, then usually claim a foreign tax credit for the Canadian tax you paid. Canadian rates are often higher, so many Americans in Canada owe little or no U.S. tax on their Canadian income. Late or incorrect filings can still cost you through penalties, interest, or lost credits, so accuracy matters.
The CRA looks at your residential ties to Canada.
- Significant ties: a home in Canada, or a spouse, common-law partner, or dependants living in Canada.
- Secondary ties: things like a car, Canadian bank accounts, a provincial driver's licence or health card, and social or professional connections.
If you're unsure, you can ask the CRA for an opinion using Form NR74, Determination of Residency Status (Entering Canada).
Pay for work you physically do in Canada is generally taxable there. The treaty exempts it if either of these applies:
- Your pay for the Canadian work is CAD $10,000 or less for the year, or
- You're in Canada 183 days or fewer in any 12-month period, and your pay isn't paid by a Canadian employer or by a Canadian branch of your employer.
You may still need to file a Canadian return to get back any tax that was withheld.
When both countries consider you a resident, the treaty's tie-breaker rules decide. They're applied in this order:
- Where you have a permanent home available to you
- If you have one in both, where your personal and economic ties are stronger
- Where you usually live
- Your citizenship
- If it's still unresolved, the two tax authorities decide together
The country you “tie-break” to taxes you as a resident. The other country generally taxes only income earned there, and you get credits to prevent double taxation.
Yes. The U.S. normally withholds 30% on dividends paid to non-residents. Under the treaty, Canadian residents generally pay 15% instead. To get the lower rate, give your broker or the payer a Form W‑8BEN. Canada then gives you a credit for the U.S. tax withheld.
Not always. A Canadian resident who isn't a U.S. citizen may not need to file if their only U.S. income is something like dividends with the correct tax withheld. U.S. wages, rental income, business income, or selling U.S. property usually do require a U.S. return. U.S. citizens and green card holders must file regardless.