Income Tax and Canadian working remotely for USA Company

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Income Tax and Canadian working remotely for USA Company

Postby sak » Fri Nov 06, 2009 9:38 am

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Hello,
I search the forums but couldn't find the answers I'm looking for.
I will be working from Canada for a USA company. The US company will be paying me in Cdn $.
My questions are as follows:
1. Do I need to pay any income tax in USA? or file any form?
2. USA company will be paying me with my name. Is it possible to claim amounts like vehicle lease, mortgage (since I will be working from home), office furniture, etc?
3. Can I setup a corporation and even though, employer will be paying me not in the name of corporation but can I somehow claim that money as corporation?

Please advice.
Thanks
sak

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Re: Income Tax and Canadian working remotely for USA Company

Postby agnelson » Fri Nov 06, 2009 10:23 am

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Re: Income Tax and Canadian working remotely for USA Company

Postby Steven » Wed Nov 18, 2009 11:28 am

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sak wrote:My questions are as follows:
1. Do I need to pay any income tax in USA? or file any form?


As an individual earning under US$100,000, probably not, over that amount perhaps a protective 1040NR/8833, using a corporation a protective 1120-F/8833.

2. USA company will be paying me with my name. Is it possible to claim amounts like vehicle lease, mortgage (since I will be working from home), office furniture, etc?


You can claim office expenses just like any other Canadian business using the same rules, where your income comes from is irrelevant. Your invoices will be GST zero-rated.

3. Can I setup a corporation and even though, employer will be paying me not in the name of corporation but can I somehow claim that money as corporation?


To cut a long story short, doesn't sound as though setting up a corporation is a good idea in your situation.
Steve.
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