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Tax Law (Questions About Taxes)/Canadian working in California

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Question
QUESTION: Hi John,

I am currently a Canadian citizen about to embark on a work term in Los Angeles, California. I want to estimate my cost of living, and in order to do so I need an rough idea of how much taxes I will pay.

I am using the following site as a reference:
https://secure.gtmassociates.com/calculator.aspx

I am showing the following deductions are present:
Federal Income Tax   
Social Security
Medicare   
State Income Tax
State Disability Insurance

Is it necessary that I need to pay all of these (e.g. Medicare) since I'm not a United States citizen? For reference, I will be making $120,000/year, Single with no dependents, if that helps

Thanks in advance for your assistance

ANSWER: Ricky:

You have listed the taxes that you will be required to file on your earnings in California.  You may also be required to file some additional local and county income taxes in addition to state and federal taxes.  Depending on your income the taxes in California including Federal could be about 50% of your income.

John  

---------- FOLLOW-UP ----------

QUESTION: Hi John,

Do you have any online resources where I can learn about tax deductions for people in my situation (Canadians working abroad).

For example, in Canada we are allowed to put money into an RRSP account up to a certain limit, and have all of that deducted from our taxable income.

Ideally, I'd like to see if I can lower that $1300ish a bit (in my case -- about $1000 federal and $350 state)

Thank you again,
Ricky

Answer
Ricky:

I have plenty on Americans working abroad.  However, In my tax practice in 40 years I have never filed a tax return for a Canadian working in the USA.  We have several Tax Deferred programs but in order benefit from them you must be a citizen or a permanent resident.  Sorry for not knowing Canadian tax law or tax Law on a non resident working in the USA.

John

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John L. Tidwell

Expertise

Unemployment tax law both state and federal; determination of employer employee relationship; the usual 20 commonlaw factors for making that determination; and what makes me a liable employer.

Experience

Over 20 years of field audit experience with a state agency

Organizations
none

Publications
none

Education/Credentials
Degree in Accounting from Falls Business College

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