27 and a PhD

Home » Grad school » Postdoc taxes, a semi guide for US postdocs in ON

Postdoc taxes, a semi guide for US postdocs in ON

Welcome to my blog!

Hello there, awesome reader. My name is Dr. 27. I'm older than that now, but I'm staying faithful to the origins of the blog.

This blog started 2 months before completing my PhD in a pretty southern university back in 2009. It was a way to practice my writing and take a break from all things thesis. My PhD is in a branch of structural biology where I studied some rather impressive stuff.

After completing the degree, I packed my life of 6 years in 3 days and moved to Canada to do a postdoc in a completely different field. Two years later, and after attending a lot of seminars, workshops and doing some much-needed soul-searching, I ended up getting out and looking for an alternative path to academia and industry.

The blog chronicles my mishaps, ideas, musings and tips on entering, staying and finishing grad school. It also talks about some (or a lot) of personal stuff. For a while, the blog became a place to talk about the frustrations of not knowing what to do after PhD. I wanted to explore alternatives to the traditional paths of research (academia, industry and goverment) whilst going back to my field of training (if at all possible). Eventually a job materialized. Follow my quest as I navigate the waters of being a staff scientist at a core facility.

Calendar

April 2010
M T W T F S S
« Mar   May »
 1234
567891011
12131415161718
19202122232425
2627282930  

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 2,644 other followers

Follow me

Error: Twitter did not respond. Please wait a few minutes and refresh this page.

***** Disclaimer – this is by NO means a comprehensive, absolute guide of how to do your taxes. I decided to get professional help with them, since it doesn’t matter whether or not you live in the US, you still need to report your worldwide income (and I wanted to avoid being excessively taxed). Since this is also my first year in ON I had to file provincial and federal taxes in addition to the US. Consult with a certified public accountant for your particular case. This is just for illustration/information purposes.

So … finally last weekend I filed my taxes. A Canadian postdoc from my lab had advised me that taxes here are a bitch, and that I should be saving about 1/4th of my take home income so I wouldn’t be surprised when it was time to pay for the taxes. I am SO very thankful for his advice, because it helped to a) not use my credit card to pay, and b) there was definitely money left over to enjoy. Here’s how things went.

I went to a professional firm and met with a CPA. She was super nice, and it took us about 1hr to go over the US and Canadian taxes. I brought in my W2 and my T4, for each country. We went over the details of the expenses and things I could deduct. I brought in all the receipts I could find regarding the move (I’m sure I missed a few). I couldn’t deduct the gas expense, but I did the lodging, storage, trailer and even the locks I had to purchase! I deducted these expenses from the US taxes only. Originally, my calculations resulted in me getting all excited about NOT having to pay anything to the IRS, but I didn’t factor in my Canadian income. I was told that next year I will need to file both again, but since I will only be making money in Canada, the US amount should more or less cancel out. I ended up paying ~250 USDs to the IRS, and a little over 2000 CADs to Canada Revenue. I had saved a little over 3K, so there was some money left. Now, the filing the taxes and paying for them was more expensive that I thought, and it amounted to ~300 CADs (bummer).

Still, there was money left over to get new jeans, a new watch, and a nice haircut. YAY!!!!!

So, this was not as detailed as I thought it would be (maybe because I didn’t make a list of the points above). But here are some things I learned from this process:

  1. Even though forking out the 300 bucks in expenses for filing the taxes was painful, I have the peace of mind that if something was to happen, in theory, I should be covered. So, my advice is to go professional and have the forms filed by experienced people.
  2. Do things in a timely manner. I filed my taxes in April, but for next year, as soon as I get my forms I’m calling the professional CPA to file them pronto!
  3. I’ll keep saving about the same amount as I had before. I saved about 20-25% of my take home pay, so it gives me peace of mind to have this taken care of during tax season.
  4. I’ll save receipts or make lists of all the things I buy, whether it’s a box of paper or a laptop, so I can deduct it next year. Since I had a bunch of my stuff with me, my PC, my desk, etc, I didn’t deduct those, but whatever office supplies I get from now on that might be deducted as research expenses will go in.

Although this is not a super comprehensive list of how to file your taxes I hope I give you bits and pieces of info on what to take into consideration when you’re a US citizen but move abroad and file taxes. All the best and please, if you have questions, ask. I’ll be more than happy to answer.

Advertisements

3 Comments

  1. polz says:

    Hi!

    This is polz again.. I commented on your post a while ago but I can’t seem to find your email address now!

    Thanks!

  2. 28 says:

    Hi Polz! Thanks for visiting. Feel free to email me at stitchick (at) gmail (dot) com (I do the @ and . like that so spammers have a harder time clogging my inbox). Feel free to drop a line if you have questions.

  3. […] – Paid taxes, in BOTH the US and Canada. Wrote a little “guide” about it … though not sure if it applies to everyone, but […]

What's your take?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: