Love Across the Border: Marriage, Remote Work, and Tax Questions for Canadian-American Couples

Falling in love across the Canada-U.S. border can feel overwhelming without a plan. You have to manage immigration, tax residency, and, if you are still in your active working years, you will potentially do some remote work while waiting to be legally allowed to immigrate.

One of the most common questions I hear from couples is:

“I’m a Canadian citizen marrying an American citizen. Can I work remotely from the US for my Canadian employer without any tax issues? And if my employer allows remote work, can I continue to work for my Canadian employer?”

Although the Canadian employer does have legal obligations of their own, there are also personal tax obligations that may arise. Where the work is physically performed, and the amount of time spent in each country can all have significant consequences on your tax obligations.

In the US, the IRS uses what is known as the Substantial Presence Test, which looks at the current year and the two previous years using a weighted formula. It is not simply a matter of counting 183 days in a single year. Individuals who spend significant time in the US may become US tax residents without immigration status.

On the Canadian side, residency for tax purposes is not determined only by the number of days present. The CRA looks at your overall domestic ties, such as where your spouse lives, whether you maintain a home, and where your day-to-day life is centered. If you are an American who married a Canadian, you can easily fall into the domestic tie.

Visiting Your Spouse While Waiting for Immigration Approval

A Canadian citizen may spend several months at a time in the US while continuing to work remotely for a Canadian employer. Similarly, an American spouse may spend significant time in Canada while maintaining employment with a US company.

Regardless of immigration status, purely from a tax perspective, this may work, but there are a couple of things to consider:

• Days physically spent in each country which can arise potential tax implications
• Employer payroll withholding and legal obligations

Simply because your employer is located in Canada does not necessarily mean Canadian tax rules are the only rules that apply. The country where the work is physically performed may claim the right to tax you first. This can create additional tax reporting obligations even before a permanent relocation occurs. For example, if you were to exceed 183 days spent in Canada in a rolling 12-month period, Canada may have a right to claim taxes on all the work performed on Canadian soil.

Another scenario happens where you may be ready to move but not ready to leave your current employer. For example, a Canadian receives a US Green Card and moves permanently to the US but continues working remotely for their Canadian employer. Alternatively, an American obtains Canadian permanent residence while remaining employed by a US company.

Double Taxation Concerns

The good news is that the Canada-U.S. tax treaty helps prevent many cases of double taxation. However, relief is not automatic. Proper tax filings and foreign tax credit claims are necessary to ensure income is not taxed twice.

This is particularly important during the year of a move, when an individual may be considered a resident, or part-year resident, in one or both countries.

Marriage between a Canadian and an American can open opportunities to build a life together on either side of the border. However, extended visits, remote work arrangements, and the period between obtaining immigration status and changing employers can create unexpected tax and compliance issues.

The most successful cross-border couples are usually those who plan ahead, track their travel carefully, and seek professional advice before making major moves. Understanding the difference between immigration residency and tax residency can save significant stress, paperwork, and potentially costly surprises down the road.