Can I work on a 1099 under a TN status?

[agnelson]

Agreed. But this is the one instance that I can think that it is actaully worth being considered Cdn resident over US -- due to the high FICA rates.

Note that Canada *could* deny your FICA as a tax credit if they deem that is was not 'legally owed' to the US, due to your Cdn residency. So in the end you may have to go through this, so best get it out of the way from the beginning.

[GoldisRising]

I am kind of confused, so can we file taxes on 1099 or not?

Last year my company just paid me all year long in the end came and said sorry we forgot about you here is how much you made just go ahead and pay taxes on it and so i did.

Now they jut told me that they will pay me on a 1099 and i am wondering if this is ok, if not is their anything else they can issue me?

Keep in mind they are paying me and not deducting i just pay taxes in the end.

Last year i ended up paying all taxes plus i think 15.5% SS

Thanks

[agnelson]

Can you file taxes in US with an 1099. Of course.

The question is "should you"? If you live in US and not canada: yes.

If you live in Canada and not US: Probably not, due to the treaty exemption, at least for 2008.

But if you are asking can you WORK as a TN and be paid on a '1099' basis (ie. a contractor). Definitely. The exact form you should get is debateable, but TN contracting is allowed.

[GoldisRising]

Hello Angelson i have a Canadian Corporate as well. 2 years ago i was living in the US and filing taxes through the Canadian Corporation can you please let me know if its legal? Problem is you go to ask advice and suddenly people feel bad and they try to help you out by tweeking things here and their.

This is the reason why i come to this board i just need to know if Legally i can work through my Canadian Corporate.

In other word. COmpany in Canada pays me in the US then at the end of the year goes back and dumps it in my corporate....

Do i make sense?

Thanks

[Steven]

"A corporation is located where the work of the corporation is ordinarily performed" so if you have a Canadian corporation and you work for it in the US, it must get an EIN, file an 1120-F every year, pay US corporation taxes (if any are due) have a US payroll and so on.

I assume your corporation is a CCPC, so provided you remain a tax resident of Canada (which is legally required for a CCPC if you own it) then you must in essence set it up as a US corporation to work for it in the US. Rarely any point in going to all this hassle, makes more sense to set up a US corporation otherwise the paperwork becomes a total nightmare.

But your business cannot sponsor you for TN-1 obviously otherwise you are self-employed at that point which is illegal.

If you move your tax home to the US you may expose yourself to departure tax on the CCPC if it's worth anything.

[agnelson]

"But your business cannot sponsor you for TN-1 obviously otherwise you are self-employed at that point which is illegal."

Correct, but the illegality is not self-employment, but self-sponsorship. CBP would not grant the TN in the first place.

Very few people are using CCPC, steven.

[GoldisRising]

Ok so in other word both You guys think 1099 is ok.

[agnelson]

I do. You may or may not get a 1099 at end of year, but you will not get a w-2, and that is fine.