Do you pay American or Canadian taxes when you're in the US?
Edit: Yes, I know, possibly a very stupid question
Both.
Ahem, I'm capable of answering for myself.
Do you pay American or Canadian taxes when you're in the US?
Mostly American. Someone on the interns email discussion group here at Microsoft asked a tax consultant about this, and his response was that you have to declare the income when you get back to Canada, but that you can deduct the taxes that you paid in America off of the Canadian taxes you have to pay, so the net effect is that I'll have the Canadian amount of taxes taken off at the end. I don't believe that I have to pay both 100% of American and Canadian taxes on the income.