The U.S. is one of the few countries that assesses taxes on worldwide income for its citizens no matter where they live.. Get exclusive investment industry news and insights, the week’s top headlines, and what you and your clients need to know. For more from Globe Advisor, visit our
The U.S. is one of the few countries that assesses taxes on worldwide income for its citizens no matter where they live. Meanwhile, Canada, which also taxes worldwide income, does so for residents. That means U.S. citizens who live in Canada are required to file a tax return in both Canada and the U.S. that includes their worldwide income on both returns.
The NIIT’s 3.8 per cent surtax is applied in addition to standard income taxes if a person’s total income exceeds a certain threshold: US$200,000 for single or head of household, US$250,000 for a married couple filing jointly, or US$125,000 for a married person filing separately.