What is the best option for a family having total income US 100+k
Jump to Page:
< Previous [ 1 ] [ 2 ] Next >
Hi forum members.
May be this is old topic but I appreciate your time for my long posting
I am on TN visa and my wife Canadian PR (also on H1) and have 1 kid (2years old). At the moment I am living in East Coast, and PLANNING TO MOVE TO SEATTLE/VANCOUVER.
My situation is
I got job offer in Seattle and my wife has job prospects in Seattle/Vancouver. If the total household income is above US 100k+, what is the good option in savings point of view,
My questions are
How can I save the taxes on income, if we both work in Seattle with 100k+ and live in Vancouver? or I work in seattle and my wife work (with less salary than in US)in Vancouver and living in Vancover.
If we both want to work in Seattle, is it good idea to travel daily from White rocks (planning to buy a house in white rocks) to Seattle. Does this works out, practically. As I doubt the driving time to daily work may be of too much.
Is education/day care for kids is less expensive in Canada than US?
In Canada, Kids education is at throw away price till 8th Standard? Is that correct?
Here in US, my insurance premiums are very high, If I relocate to Vancouver BC, Canada and as I am canadian citizen and my wife is canadian PR. Does my insurance for the family is taken care by Canada at cheaper price than US.
By choosing, one working in Seattle (Husband) and wife work in Vancouver Do you guys think we can save more in taxes, as our professions are like more you get pay more you get cut in terms of taxes, cost of living by putting up in big citiies etc.
where is cheaper to by a house North of Seattle, or south of vancouver so that live closer to the border.
I am in impression that by maintaining my TN status in US and my wife working in Vancouver, we can save some in terms of taxes, insurance premiums, cost of living etc., I spent alot on MS for both of us and thanks GOD we got jobs and now I am ending up in paying taxes alot.
I am in impression that saving some money is nothing but earning money. The more you earn the more get cut as income tax. After having a look at the returns, almost 1/2 of one of our salaries paying as taxes.
If I am only on H1 visa, I have no option of continuing the jobs (me and my wife in US) but as I have canadian Passport and my wife soon getting one. so I thought to relocate to US(working)/Canada (living)border will save some money
Can you guys suggest me some thing in this regard.
Thanks in advance
Sreen
What is the best option for a family having total income US 100+k
Hi forum members.
May be this is old topic but I appreciate your time for my long posting
I am on TN visa and my wife Canadian PR (also on H1) and have 1 kid (2years old). At the moment I am living in East Coast, and PLANNING TO MOVE TO SEATTLE/VANCOUVER.
--- Seattle is USA and Vancouver is Canada. There is no seattle vancouver
My situation is
I got job offer in Seattle and my wife has job prospects in Seattle/Vancouver. If the total household income is above US 100k+, what is the good option in savings point of view,
---If you live in Vancouver, you will be subject to cdn taxes adn saving potential is really less in that case ..
My questions are
How can I save the taxes on income, if we both work in Seattle with 100k+ and live in Vancouver? or I work in seattle and my wife work (with less salary than in US)in Vancouver and living in Vancover.
-- YOu will pay taxes in both USA and Canada. Saving potential not much . High Income and High Taxes for you guys
If we both want to work in Seattle, is it good idea to travel daily from White rocks (planning to buy a house in white rocks) to Seattle. Does this works out, practically. As I doubt the driving time to daily work may be of too much.
--Thats a lot of commute. 2-3 hrs (1 way on I-5) If you both work in seattle , Why live in Canada /white rock
Is education/day care for kids is less expensive in Canada than US?
-- It free both sides unless you plan to send your kids to aprivate school
In Canada, Kids education is at throw away price till 8th Standard? Is that correct?
-- Yes
Here in US, my insurance premiums are very high, If I relocate to Vancouver BC, Canada and as I am canadian citizen and my wife is canadian PR. Does my insurance for the family is taken care by Canada at cheaper price than US.
-- Yes , but you will not be covered in seattle with that and you will be subject to cdn taxes on your income based on your residency in canada.
By choosing, one working in Seattle (Husband) and wife work in Vancouver Do you guys think we can save more in taxes, as our professions are like more you get pay more you get cut in terms of taxes, cost of living by putting up in big citiies etc.
-- Nope
where is cheaper to by a house North of Seattle, or south of vancouver so that live closer to the border.
-- US real estate is cheaper than canada
I am in impression that by maintaining my TN status in US and my wife working in Vancouver, we can save some in terms of taxes, insurance premiums, cost of living etc., I spent alot on MS for both of us and thanks GOD we got jobs and now I am ending up in paying taxes alot.
--The only way you can save taxes is by both of you moving to USA
I am in impression that saving some money is nothing but earning money. The more you earn the more get cut as income tax. After having a look at the returns, almost 1/2 of one of our salaries paying as taxes.
If I am only on H1 visa, I have no option of continuing the jobs (me and my wife in US) but as I have canadian Passport and my wife soon getting one. so I thought to relocate to US(working)/Canada (living)border will save some money
Can you guys suggest me some thing in this regard.
--The only way you can save taxes is by both of you moving to USA
-----------------------------------------------------------------
We will find a way or we will make one
Location: Western Hemisphere
Posted on: 10-07-06 12:28:45
Real estate costs are dependent upon location. Cannot simply say one country is cheaper than the other. For example, Windsor, ON is cheaper than metro Detroit, MI, USA. I saw a listing for 10,000 acres in Saskatchewan for $130,000. McAllen, Texas is dirt cheap in real estate and is one of the fast growing border towns.
Saving on taxes depends on how you plan your finances, what your income is and what the exchange rates are. If the exchange rates are what it used to be at 65%, the reported income converted to Cdn $ for the Cdn taxes would be high enough to potentially shift you to a higher income bracket in Canada than in the US.
Right now, with 89 to 91% exchange, the probability of you staying within the same tax bracket in both countries are quite good. Simplified, taxes work like this - you file US taxes, pay US taxes, then you file Cdn taxes and take credit for what you have already paid in taxes. If you fall in a higher tax bracket in Canada, then you pay the deficiency to Canada.
If you live in Canada, you could save on taxes by contributing to RSP rather than contributing to 401k if your US employer offers one.
Of course, if you live in the US, then taxes could be lower, again depending on how you plan on tax deductible investments. On the other hand, real estate might be higher. It all depends.
-----------------------------------------------------------------
Dimple2001
Location: British Columbia
Posted on: 10-07-06 12:35:07
In Canada, Kids education is at throw away price till 8th Standard? Is that correct?
Im not sure I understand what "throw away price" means but public school education is free (right upto gr 12 graduation).
Secondly - as Smiley pointed out, you are looking at a very long commute every single day. You have not mentioned what part of Seattle you are going to be working in - Seattle is a huge metro. The traffic on the I-5 on weekeday mornings is a nightmare.
Also: Daycare for a child who is not yet school aged can be upto $30/day.
At your income level you would not qualify for any subsidies.
Your question may be better answered by contacting a financial planner.
It may be a worthwhile venture to get a professional's advice regarding investments.
-----------------------------------------------------------------
~ Morning rain
Without knowing entire situation, giving suggestions is like shooting in the dark.
Within parameters you have defined, if I were you, I would live in Seattle near the work and have a nice time, without having extraneous worries, and try to plan my finances in such a way that I minimise my tax incidence.
Living across border and trying to drive long distances every day would reduce quality of life. With diminished quality of life, incremental money savings become meaningless. This kind of thing I would do if I were earning $30,000.00 and had to pinch pennies by compulsion.
Of course, your priorities could be genuinely different.
Right now, with 89 to 91% exchange, the probability of you staying within the same tax bracket in both countries are quite good. Simplified, taxes work like this - you file US taxes, pay US taxes, then you file Cdn taxes and take credit for what you have already paid in taxes. If you fall in a higher tax bracket in Canada, then you pay the deficiency to Canada.
If you live in Canada, you could save on taxes by contributing to RSP rather than contributing to 401k if your US employer offers one.
Of course, if you live in the US, then taxes could be lower, again depending on how you plan on tax deductible investments. On the other hand, real estate might be higher. It all depends.
-- Canada taxes are higher than US for "MOST" parts. Here in this case WA does not have state tax and BC has 11.5% BC tax. Thats a direct saving of 11% of your taxable salary .
--Contributing to RRSP with a US salary is the biggest lie . You pay into RRSP from your after tax US salary . I have gone through this and this is not sweet .
-- 401K contributing is good till the limit your employer contributes to get free money , but canada will still tax you on it ..
-- Taxes are lower and salaries are higher and living is cheaper in US. Believe me , Thats my first hand experience. Goods and Groceries are cheaper in US as compared with Canada.Tax deduction of Mortgage Interest is Great and also you could deduct sales tax on your taxes in US for this year..
-----------------------------------------------------------------
We will find a way or we will make one
Location: Western Hemisphere
Posted on: 10-07-06 14:13:08
Quote:
Originally posted by Smiley
Right now, with 89 to 91% exchange, the probability of you staying within the same tax bracket in both countries are quite good. Simplified, taxes work like this - you file US taxes, pay US taxes, then you file Cdn taxes and take credit for what you have already paid in taxes. If you fall in a higher tax bracket in Canada, then you pay the deficiency to Canada.
-- Canada taxes are higher than US for "MOST" parts. Here in this case WA does not have state tax and BC has 11.5% BC tax. Thats a direct saving of 11% of your taxable salary .
--Contributing to RRSP with a US salary is the biggest lie . You pay into RRSP from your after tax US salary . I have gone through this and this is not sweet .
-- 401K contributing is good till the limit your employer contributes to get free money , but canada will still tax you on it ..
If you live in Canada, you could save on taxes by contributing to RSP rather than contributing to 401k if your US employer offers one.
Of course, if you live in the US, then taxes could be lower, again depending on how you plan on tax deductible investments. On the other hand, real estate might be higher. It all depends.
-- Taxes are lower and salaries are higher and living is cheaper in US. Believe me , Thats my first hand experience. Goods and Groceries are cheaper in US as compared with Canada.Tax deduction of Mortgage Interest is Great and also you could deduct sales tax on your taxes in US for this year..
--US is more $$ and growth and Market while Canada may be more relaxing and more family life etc. Depends what you are looking for
Believe me too. I have also lived in the US. Where I live now, Windsor, ON is turning out to be cheaper than where I used to live, metro Detroit. Regarding taxes or living costs, I can only compare MI to ON, that too only Windsor and metro Detroit. That's why I mentioned that location makes the difference, not the country.
Also, I hope you were not very harsh and excited about RSP contribution to call it a "lie". In fact, what you said above is exactly what I meant. Yes, you contribute to RSP from your own after tax money.
However, what I meant was if you contributed to 401k to the fullest extent, you pay too much tax since the US withholding is lower and in Canada, you pay on the full wages and not on the reduced amount. And yes, 401k is good till your employer's contribution since that's "free" money, and Canada will tax you on that.
Also, from my experience, in the past 2 years, I have been able to reduce my withholding at source and take home more money per HR block's advise. Per HR block I have not used the available RSP amounts towards deduction because the tax credits was more than enough to bring my Cdn taxes to zero. And that was because of the exchange rate. Hence, my comment on the exchange rate.
Again, these are all personal situations and cannot be compared from person to person. Individual financial planning will affect how things work out.
-----------------------------------------------------------------
Dimple2001
