I'm not going to say much - other than direct you to a very interesting article about Dividends. As a Mustachian who can get by on an income of less than 35K - invested properly - you will pay NO TAX on an eligible Dividend portfolio. Just read the article found here:
A question for Ottawa - or any other Mustachian that knows:
I've been looking around the net and haven't really found the precise answer to my question, but have a general idea - if a US citizen ends up moving to Canada, I realize that there is a tax treaty that will help reduce/eliminate double taxation...but what happens if that US Citizen living in Canada continues to hold US companies that pay dividends? Does the US Citizen pay the US Income taxes based on the US dividends, and then (if the total dividends received exceeds 35k), the Canadian taxes owed would still be eliminated by the tax treaty?
Or would the US Citizen pay the US taxes on the US company dividends, and then also have to pay the appropriate Canadian federal/provincial taxes?
And if the US Citizen bought Canadian stocks in addition to their US stocks, would they also owe US income taxes on the dividends paid by the Canadian companies (while they lived in Canada)?
I realize that taxes are complex and have other factors, but just looking at dividends, what is the situation the US citizen would be in?