Taxes and Teaching Abroad

How do you file taxes in your home country while teaching abroad? Do you ever have to? Will I be taxed twice?

Dealing with taxes in your home country while teaching abroad can be a lot of red tape and potentially a lot of trouble if you simply don't file. Very often, how or if you file taxable income from earnings abroad depends on where you are teaching and if that country has a treaty with your home country covering the issue.

For Canadians, here is a guide courtesy of the CBC.

Ways to avoid double dipping

Scenarios can differ depending on your location, your tax status at home and the conditions of the treaty agreement, if any, the country has with Canada.

For example, your foreign income — even if it's a few hours a week serving coffee at a local café — may be taxed at source in that country. In all likelihood, you will also have to report that same income on your Canadian tax return because you are still a resident of Canada.

"In such a circumstance, the individual could be subject to tax in both countries on the same income," Brideau said.

However, there are provisions to help you avoid paying tax twice on the same income if you are earning income in a country that has a tax treaty with Canada.

For Americans, here are the rules by the IRS.