You sure about that?
American citizens who work in Canada either with production companies or as athletes are required to pay taxes in Canada if they make more than $15,000 annually in Canada or spend I believe more than half a year residing in Canada. Depending on how they have their income set up, what tax bracket they're in, and what province they're in, this can range from about 20% to 50% of their income in Canada.
American citizens are also required to file taxes in the US, regardless of whether or not they actually reside in the US. They can get tax credits for whatever taxes they end up paying outside of the US, but they still have to file and if the IRS decides they haven't paid enough taxes they have to pay taxes.
Meghan is going to have to pay taxes in Canada on any income for Suits and Reitmans, as she's working in Canada for that. She might not have to pay Canadian taxes for Tig, depending on how she has that set up. But she's also going to have to file taxes for the US, and potentially have to pay more if her tax credits don't cover all of what she owes. Which is possible; if she's making 1.3 million annually she's in the high end of the tax bracket for the US. Depending on how she has her Canadian income set up, she could be paying as low as 23% taxes in Canada, but in the US she'd be expected to pay 39%. She'd very likely have to pay the difference to the IRS.
I'm sure as I'm a CPA. The concept of tax treaty is so they are not double taxed. They will pay whichever is higher. And btw, the 23% in Canada isn't the same as the percentage you are thinking in US. The 23% in Canada is on gross income. The tax brackets in US are based on net income. As a self employed individual (she gets a 1099, not W-2 from the studio), she'd be able to deduct her "business" related expenses first. She'd be able to deduct management fees, public relations fees, some travel like any other self employed person. In addition, she'd also get foreign earned income exclusion as long as she lives broad for 300 days or more per year, which seems to be the case as she primarily lives in Canada and travels abroad quite a bit when not working. She's also not taxed on the entire net income at 39%. She'd be able to get the lower brackets as well, only any income over 415k in 2017.
Assuming she makes 75k per episode, and Suits filmed 16 episodes last year. Her gross income would $1.2, and Canadian tax liability would be $276k. Doing the calculation for US income, that amount of tax satisfies $859,200 of net income. When you deduct 10% for management fee (she's mentioned that's how much her management takes when she first signed, could be higher now, but not sure), and deduct another 10% for public relation fees and other professional fees. Plus deducting the $100,800 foreign earn income exemption. The net income is already at $859,200. Plus she'd get foreign housing exclusions and any travel related to her work as an actress would also be deductible. There are just so much eligible deductions under the US code that the Canadian tax likely covers her US tax liability. I just geeked out. Mods please feel free to delete if you feel tax talk isn't related to Harry's love life. lol
As long as Meghan's permanent residence is in Canada, she is only required to pay Canadian income tax. She does have to file in the US but under NAFTA, as long as she properly files, she doesn't pay extra. My brother in law and his twin are dual citizens. He doesn't own any property or reside in the US, never has, but still required to file every year. He doesn't pay extra taxes. His brother now lives there, but works in both countries, so his taxes harder.
But basically as long as her home is maintained in Toronto while working here, and she files every year, she only has to pay the Canadian taxes.
Technically if you don't owe taxes, you aren't required to file. However, it's a nice way to cover your behind. Also, if you file, you start running the clock on Statute of Limitation for the IRS to audit you. If you don't file, that clock doesn't start.
Regarding your last sentenece, before the relationship is published, she had only one expensive bag, beige one, at least according to her IG now several... freebies maybe?
I think it is 25.000 but not sure ��
No work for her after marriage to Harry, if they do it, she will be required to do charities in England. No Tig because, this is my area, she will be paid in money or in kind which shall be considered as a gift, people would line up to be promoted... so she will be obliged to terminate all business contacts ... just charities....
I've definitely seen Meghan with multiple designer bags prior to the announcement of the relationship. For a woman who is willing to splurge almost a thousand dollars for each pair shoes from Sarah Flint, I have no doubt that she'd spend a few thousand for a handbag that fancies her. And Sarah Flint has said that Meghan has been a fan for years. And also, the 25k going rate seems low. The starting would be 50k for a show that's picked up. For the more established shows, it's typically higher.
I love her shoes...I can definitely see why others are interested as well.I did read comments claiming she dresses more affordably than Kate right now only because she doesn't have Kate's "Taxpayers Budget" but I think even if she did she wouldn't spend as much...Her purses are VERY expensive though,even the Meghan Effect can't get me when it comes to purses! Hopefully we get a Meghan Fashion forum to talk about this on if this leads to engagement.
