Canadian working in US under NAFTA

I will be working in the US for six months, being paid by a Canadian Company, who will provide my services to the US company.

Can anyone help with information regarding income tax payable during this term? Should it continue to be deducted at source by my Canadian employer? Do I owe anything to the US?

Also, do I need any US forms to be filled out? Someone mentioned a form 8233. Because I will be paid by a Cdn company is that applicable?

You should continue to be paid by your Cdn firm, and thus have only Cdn taxes withheld (they cannot withhold US taxes for you of course). There is no forms to file in US.

However, if you remain in US for 183 days in any 365 day period, you will have to pay US tax on that entire income (it will become US-sourced) on a 1040NR, and then get credit for the tax paid on your Cdn return.
You may also be eligible for an overseas employment tax credit if you are there more than 6 months.
So, make sure you don't stay in US more than the 183 days. It might not cost you more money, but it will be a headache to file the taxes.

There are some subtle issues that need to be considered, but I'll deal with those only at forums.serbinski.com

Can a Canadian work under contract with a Canadian company in the US?
I have a partcular situation. I am currently on an O1A visa and it will expire Jan 11. I have a new contract with a Canadian company and will be working with Canadians in a Sport facility that is one of its kind in North America! My job takes me there because of the facility!
any thouhgts? thank you

You can work for the Cdn firm in US, but you first need to move back and establish residence in canada, and then you will be admitted temporarily ob B2 busines visitor.

Thank you very much for the response. I am sure I will have more questions soon!

-- Wed Nov 24, 2010 2:23 pm --

How established does my residence have to be? Just and address or do I need utility bills etc?

Lease, utilities, car plates, driver's license, medical card