Income Tax and Canadian working remotely for USA Company

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sakNew Member
Topic author
Posts: 1
Joined: 6 Nov 2009

Income Tax and Canadian working remotely for USA Company

Post Fri Nov 06, 2009 10:38 am

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
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agnelsonCanuckAbroad VIP
Posts: 2865
Topics: 1
Joined: 26 Aug 2009

Re: Income Tax and Canadian working remotely for USA Company

Post Fri Nov 06, 2009 11:23 am

forums.serbinski.com
This site is a travel site and not best source for these topics:
TN and TD info: http://forums.immigration.com/forumdisp ... -TN-Status
For US/Cdn taxes and SS/CPP:forums.serbinski.com/index.php
US Marriage-based Immigration: visajourney.com
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StevenCanuckAbroad VIP
Posts: 3635
Topics: 2
Joined: 28 Sep 2007
Location: Calgary

Re: Income Tax and Canadian working remotely for USA Company

Post Wed Nov 18, 2009 12:28 pm

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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