Quote:
Originally posted by greatwhitenorthchick
If you are a US citizen living in Canada, you pay both sets of taxes (Canada taxes based on residency, not citizenship) and the US-Canada tax treaty makes sure that you are not double-taxed - i.e. exempts one set of taxes so in effect, you only pay Cdn tax. I imagine Italy and the US have a similar treaty in place.
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I believe that the similar dynamic occurs amongst states, relevant in our circumstance for GPs that are Ps within a multistate firm. You've gotta pay state tax for not only the state in which you live, but also the other states in which the firm is situtated.
Many states, I think, have tax treaties that allow credits of one set of paid taxes against those owed in the other jurisdiction.
