Contractor payment from US Company

I will soon start as a contractor for an US company while waiting for my H1B to be approved, so I can start full-time on Oct 1st.

My question is, can I deposit my cheque to my US bank account or should I deposit it to my Canada bank account then bring my money (in cheque) to US later.

I am just a bit concerned about IRA monitoring large transactions and might find it suspicious as I will not report it in my 2011 US tax return.

Thanks

Tax residency has no impact on where your maney should be deposited, nor vice versa. Deposit the money where it is most convenient for you and firm.

Now, as to what you will report to IRS or not: This will depend on where you work (in US or outside US), and the number of days you spend in US in 2011. Also, you will have a choice to report all 2011 income in any event. I deal with these questions in depth at forums.serbinski.com.

I presume you are not eligible for TN, otherwise you would be working there now, so you are probably working in canada, or are in US on B-1? This will impact what you need to report to IRS.

But where you deposit the proceeds has no bearing.

Good to know.

Well, I got rejected for TN this year.
This company hired me as contractor working from Canada for August/Sept.
Once I got my H1B, I will move to US on Oct.

I do have a bit messy tax situation. For the first three months, I worked in Canada for my last US company because my TN rejection. They were still paying me like I was a California resident.

serbinski.

Thanks. I will keep you guys in mind when the tax season comes.