Whether you are an American, Expat, or Canadian citizen working in the U.S., we promise you owe taxes. And plenty of Canadian residents live in the San Francisco Bay Area. Although the exact numbers aren’t available, it’s understood California has one of the largest Canadian populations in the United States (if you are curious, other states include New York, Florida, and Arizona). 
In fact, The Hub posted an article in 2022 sharing the number of Canadians living in the U.S. increase by more than 42,000. Reasons for our Canadian friends to stay in the Bay Area could be attributed to the abundant economic opportunities in our high-tech industry. And maybe they like the warmer climate with a bit of that “Vancouver weather” our coastline cities offer. No matter what is happening between Canada and the United States internationally, the Bay Area will continue to welcome our Canadian friends!
Things may seem “inconsistent” between our countries with tariff rules possibly changing in 2025. The United States is planning to add a 25% tariff on several Canadian products. Items include meat and other animal products, to washing machines and exercise gear. Although leadership and relationships between our countries change over time, one thing is consistent; our CPA team can always manage expatriate tax return prep for Canadians.
Canadians Living a “Double Life” In the U.S. Do Not Pay Double the Taxes
Living and working in the United States does not mean Canadians stop visiting their homeland. There might be family or property to take care of from time to time. Or a Canadian might have a seasonal preference living half the year in the U.S. and then back home in the warmer months. They could also frequently commute back and forth for work reasons. Dual residency can be complicated. Taxation can depend upon citizenship status too. If a Canadian is confused about their current residency status, they can visit the Canadian Revenue Agency (CRA) website.
The United States and Canada have a Tax Treaty to help sort out the details. Which our CPA team are very familiar with!
And maybe it could be very simple for a Canadian individual with limited assets to DIY their own U.S. taxes. But that’s probably the exception. Overall, the majority of Canadian citizens living and working in the Bay Area are going to have more detailed financials. Economic opportunities can equal a larger financial portfolio over time. And there are other details to think about as well for instance, if a Canadian business owner has offices in both countries. They’ll need to pay business tax but will also want to leverage all the benefits of tax write-offs and bigger end-of-year returns. That’s why an entrepreneurial Canadian will need a CPA team familiar with expatriate tax return prep for Canada! We’ll review their situation and see how of the following apply;
- Foreign Earned Income Exclusion (FEIE): If it’s dual citizenship, there may be an opportunity to write off Canadian income on their U.S. taxable income.
- Foreign Bank & Financial Accounts Report (FBAR): This is for bank accounts that exceed $10,000.00
- The Foreign Account Tax Compliance Act (FATCA): focuses on reports on foreign financial assets.
- Permanent Establishment (PE) – deductions: Helps to review profits and accountability under the treaty.
Whatever happens between the two countries on a national level, all we care about are the tax laws! Canadians can count on us to be consistent around expatriate tax return preparation.
