Relations between the United States and Canada have a long history of friendship and support. And that’s an excellent thing for both countries! First, because we share the longest land border in the world. 
And many activities happen across that border, such as the movement of commerce. In 2022, Canada sent over $3.4 billion worth of goods and services across the border daily, making them our biggest trading partner that year.
Canada is also one of our closest allies for national security, self-defense, and energy security. And the two countries’ energy trade around oil and natural gas pipelines has helped support energy independence. This, in turn, supports joint investments in the economy and jobs (https://www.international.gc.ca/country-pays/us-eu/relations.aspx?lang=eng).
There are a few differences between our countries, for instance;
- Don’t get into a debate with a Canuck over which is better, American Football vs. Canadian Hockey. We are very passionate about our favorite sports.
- American has Independence Day, While they light off fireworks to celebrate Canada Day.
- Canada is the second largest country globally (Russia is the first), making it 1.6% larger than America. Yet, the U.S. has a much larger population.
- Americans are generally known for being a bit more “direct,” while Canadians have a reputation for being very polite. And that’s wonderful, but easy-going Canadian Expats still need to manage U.S. Tax Returns head-on. And that’s where working with one of the best CPA teams in the Bay Area can make it easy.
Canadian’s Must Learn to Live the “American Way” in the Bay Area
It’s estimated that around 400,000 cross the Canada-United States border daily. Over 800,000 Canadians live full-time in the U.S. According to a 2016 study from the U.S. Census Bureau, over 34,000 Canadians live in the San Francisco Bay Area. And there are several reasons for that. First, Silicon Valley is a powerhouse in the tech industry, and Canadian expats come for the opportunities. The world-class Bay Area food and wine culture is also very exciting. Several other reasons can be family, lifestyle, and, of course, the weather! Canada is beautiful, but it’s called the Great White North for a reason. Our climate is much more friendly.
Living in the Bay Area may be different for our Northern friends. We generally speak English, but some things translate differently. For instance, they might call a dollar a “Loonie.” And a Canadian might use British spellings for specific words, like writing “colour” instead of “color.” Most of these little differences are easy to accept.
One of the things that expat Canadians must manage in the “American Way” is paying income taxes. There are no exceptions there, and we can help!
Our CPA Team can Help Translate Tax Returns for Canadian Expats
Considered one of the biggest melting pots and economic engines in the U.S., the Bay Area is a popular spot for global citizens. As one of the top CPA firms in San Francisco, we are used to handling tax services for non-residents, expats, and dual-citizenship folks. That includes expatriate tax return prep for Canadians (https://www.safeharborcpa.com/expatriate-tax-service/).
Both countries have a tax system, but they are not exactly the same. First, Canada has a federal sales tax, while we do not. Taxes may be higher in Canada, but their personal income tax rate is 33%, while U.S. citizens can pay up to 37% (depending on their income tax bracket). And California has the highest state income tax rate at 13.3%.
A Canadian expat needs to consider these are only a few crucial differences. If they own assets in both countries, such as financial investments and property, that must be included in the equation too.
Our accountants handle tax issues for global citizens every day. We consider expatriate tax return prep for Canadians a breeze. We welcome our fun and friendly expats from the Great White North to contact us and get prepared for the upcoming tax return season.
