Living in Canada and working for USA company remotely

I am wondering if the information provided in this thread applies to me as well.

I'm a Canadian permanent resident but have been living in the US over some years and file the Form 1040. However, I did some consulting work during the summer for a US firm while I was outside the US, in Canada. The firm paid me using my US Bank. I had initially thought I was exempt from US tax. However, I now have a query and wondering whether I made an error. Is the income exempt either due to non-residency (which was my understanding), or through a tax treaty? Can you point me to any relevant information to enable me verify or make any corrections. Thanks.

If you did the work in Canada then it's subject to Canadian taxes, however as you've moved your tax home to the US then you have to declare it there as well and file Form 1116 to claim a foreign tax credit for the Canadian taxes.

I'm not entirely clear anymore how you file as a non-resident of Canada for employment income earned while you were in Canada, I think you just file a pro-rated T1 covering the period you were in Canada for the province where the work was performed, but check with the CRA.

The problem you may have is that as an LPR of Canada that is considered a residential tie for tax purposes, so the CRA may deem you resident as a result. They're not as tough on this as the Americans are (if you're an LPR of the US and you file as non-resident, wave bye bye to LPR status) but it's still a problem.

If he can still send evidence of some sort to USCIS that he did in fact leave before his I-94 expired, it may work to his benefit. Or it may not. One can never tell with USCIS and USCBP.

I'm not sure if once he becomes a Canadian citizen and tries to enter the US with a Canadian passport if it would recognize him or not.

Hello,
I am currently working in the USA on a TN visa however I am moving back to Canada in a month. My employer in the USA asked if I could stay employed with them as a PRN staff and come down twice a year to help with special events. Am I able to work in Canada full time but still hold a valid TN visa?
Thanks.

You won't need the TN if you're working in Canada and only visiting the US office once or twice per year.

Thanks Reba,

Just to clarify...I can remain technically employed by my US agency, work once or twice a year and legally get paid in american dollars without a TN Visa? My new job in Canada is with a totally different company.

Thanks again

You can't work in the US without work authorization, unless it's something that doesn't need work authorization, e.g. you work for a Canadian company and you're doing an installation in the US for example. Do a search on the web for "B-1 NAFTA entry" for the regulations.

You can have a US employer and they employ you in Canada, but to do that they either need a Canadian payroll (i.e. business number, GST number etc.) or you need to have your own company or be self-employed and you invoice them.

Generally speaking if you're on a US payroll (i.e. you get a W-2) or you physically do work in the US as a sub-contractor (i.e. you file an 8233 or get a 1099) then you must have some sort of work authorization. There are some limited exceptions but they're pretty rare. Certain people who work in transportation such as a bus driver or truck driver have exemptions for example.

I don't know exactly what you will be doing, but it sounds as though you will need a TN. Yes, you can have a TN and only enter periodically to do work, many people do this. I thaink it would be better for you in the long run as it will eliminate problems and questions at the Border. We scutinize B1 applicants alot on what they will be doing.

Just my opinion.

I am the only employee of my Canadian Corporation and have done several "GST zero rated" projects for US companies who do work for US Clients. They paid my corporation in $US.

I am now starting a relationship with a US company to work on a project for a US bank. The US company happens to have a small office in Canada. I will be billing to the US Office.

Do I need to charge GST? Does the answer depend at all on whether my corporation is paid in $US?

Also, if my Canadian company does work for the same US company (that has the Canadian office) for a client that is based in Canada, do I need to charge GST?

Thanks!

For one thing, the currency you are paid in, has no bearing on GST.

As to whether your dealings with USCo are zero-rated even though they have another office in Canada, see the pertinent GST memo:

http://www.cra-arc.gc.ca/E/pub/gm/4-5-1/4-5-1-e.pdf

It would seem to indicate that if this company is incorporated in US, and merely has a permanent establishement in canada, your dealings with the US entity can be zero-rated insofar as you do not deal with the Cdn office.

How that comapny handles matters between the US firm and the Cdn offcie would be their concern, not yours.