American working in canada

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elizabeth14New Member
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Posts: 2
Joined: 11 Jun 2009

American working in canada

Post Thu Jun 11, 2009 9:23 am

I hope the group could help me out. I am a US resident, living in the US. Self employed. A US based company would like to hire me for 6 months. 3 days a week working in Montreal. Trying to figure out the tax implications and if a work visa would be required. I will be paid in the US/US dollars.
Any thoughts?
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StevenCanuckAbroad VIP
Posts: 3637
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Joined: 28 Sep 2007
Location: Calgary

Re: American working in canada

Post Thu Jun 11, 2009 9:50 am

Clearly you live in Canada, so you if you were working in the US you would file as a non-resident on 1040NR and you'd have to file 8840 as well, that's pretty straightforward: http://www.cra-arc.gc.ca/E/pub/tg/p151/README.html

You'd claim a foreign tax credit in Québec for the taxes paid in the US, this is explained in the general guide for T1.

Whether you need work authorization depends on what you're doing. Do a web search on "B-1 NAFTA entry" as this will tell you what you can do as a regular visitor for business. If it's something more than that you need work authorization, such as TN-1 or H-1B typically.
Steve.
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elizabeth14New Member
Topic author
Posts: 2
Joined: 11 Jun 2009

Re: American working in canada

Post Thu Jun 11, 2009 10:05 am

Thanks. Actually I live in the US and would commute to Canada 3 days a week. Any idea where I can see what the income taxes rates are for Quebec? I am hearing they are higher than the US. Thank you for the guidance on work authorization, I will check it out.
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StevenCanuckAbroad VIP
Posts: 3637
Topics: 2
Joined: 28 Sep 2007
Location: Calgary

Re: American working in canada

Post Fri Jun 12, 2009 10:50 am

Sorry I wasn't paying attention, you'd have to do it the other way around, get a work permit, file a Québec T1 every year pro-rated the number of days you were in Canada and claim a foreign tax credit on Form 1116. You'd have to be directly employed by the client while in Canada so they do all the Canadian payroll withholding.

Provincial rates: http://www.revenu.gouv.qc.ca/eng/partic ... s/taux.asp

Federal rates: http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

The US foreign tax credit wouldn't fully cover the Canadian rate, effectively you would pay somewhere around the overall Canadian rate after claiming the credit.

What you can do in Canada without work authorization is pretty much the same as Canadians can do in the US, have a look at the CIC website.
Steve.
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