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I live in Palm Desert California. Twice a month I fly to Calgary, Canada for work at my job for WestJet Airlines. I get paid in Canadian funds into my Canadian Checking account and pay Alberta tax on my income. I then wire my funds to my US checking account. In addition to paying Canada income tax, do I have to pay California income tax as well?
ANSWER
Expert Charles Markham's Answer:
There are a few states in the US that give you a tax credit for taxes paid to Canadian provinces (NY is an example). Unfortunately California is not one of those states.
You can add the Alberta tax to the Canadian Income tax when you are calculating your Foreign Tax Credit on your
IRS taxes. This essentially should give you your money back.
Please note if your canadian checking account ever has more than $10,000 in it, you must file an FBAR form.
Charles Markham, MST, EA
Markham & Company
