Hi, I'm sure many Canadians on this forum will have experience with this. I'm a Canadian, but all of on online transactions (whether i'm getting paid or me paying people) is in USD. 2 Questions: 1) Who the hell do I pay tax to? Probably Canada? So I have to report my earnings on my tax reports? 2) Any good ways to reduce converting between USD and CAD? For instance, I earn USD, but when I pay for PPC (adwords), hosting, services on DP via paypal, I always have to convert from CAD to USD. This can't be totally avoided...but any reduction techniques? Please advise, fellow Canadians!
I'm not Canadian, but I can answer your first question. You pay tax to Canada. (Of course, if you wanted to throw some money at the IRS, I don't think they would complain )
hehe...i'd rather keep my money, but thanks for the suggestion =) I'm guessing IRS is the american equivalent tax collecting demon?
1) canada 2) some US banks will let u open up an account with them if you bring the passport. i havent done it myself but people have supposedly done it...of course, is a hassle if you live far away from the border. so then you can make usd deposits there and and connect it to paypal, or maybe get a credit card from them also, royal bank has usd account and a usd credit card so check that out too
When I read that, I was so excited i had goosebumps. seriously. I'll check them out, hopefully what you said is true...then things would be so great! I could save so much from not having to convert. Thanks for info! edit: do you know any other banks that offer usd credit cards?
not that i know of, but i looked around a while ago, maybe now there are some other ones but royal bank definitively has usd account and credit card http://www.rbcroyalbank.com/usbanking/index.html
Most (all?) of the major Canadian banks offer US dollar credit cards -- Royal, Bank of Montreal, etc. They also offer US dollar bank accounts, but I believe the charges on those accounts are higher than for regular accounts. If you can get a U.S. bank account, you should check out other currency dealers in your area. You may be able to get a better exchange rate that at the bank. In terms of taxation, you must report all income, no matter where it was earned and no matter what currency it was earned in.
Canadian banks will let you deposit US checks into a US dollar account, or you can convert it to CAD (US$ is dropping, I'd rather convert it).
You pay for your adwords using a Cdn$ CC, so the charges appear in Cdn$. You get paid out in Cdn dollars, so you declare whatever you made in Cdn dollars at the time.
Hi, I get paid from other sources via checks that are in USD. So do I convert it with a calculator and report it in CAD amount or what? Thanks.
Once you deposit your check it gets converted into Cdn dollars, look at your bank statements and you'll see how much to declare in Cdn dollars.
Your bank should give you a receipt every time you deposit a USD check. It will show the rate they are paying for USD and how much it converts to.