TD visa Holder Working in Canada living in US

My Wife has just accepted a position in the US and we have been living in the US for the last 3-years. I was originally sponsored by a US bank and had an H1B. The american governments new Employ Americans act has made it next to impossible for me to find employment here in the US (Former Investment Banker) as firms are unwilling to expose themselves through the bureaucratic hoops they have to go through. I have been offered a position in Canada that would allow me to work remotely and travel on weekends, thus remaining to be a US resident for tax purposes. I have no idea how this would effect my visa status and how I can accomplish this. We have owned a home in the US for the last three years and have no ties to Canada. Not planning on moving back to Canada anytime soon as my wife is being sponsored for a green card (She is a doctor). Any thoughts would be appreciated.

Your status doesn't matter as much as your wifes. She is your "sponsor" and as long as she is fine, you should be fine.

Although I should first ask the question, your wife is sponsored....what is your visa status?

I am a dependent under her H1B now...I cannot work in US unless i get another company to sponor me.

I have been offered a position in Canada that would allow me to work remotely and travel on weekends, thus remaining to be a US resident for tax purposes. I have no idea how this would effect my visa status and how I can accomplish this. We have owned a home in the US for the last three years and have no ties to Canada. Not planning on moving back to Canada anytime soon as my wife is being sponsored for a green card (She is a doctor). Any thoughts would be appreciated.

Well if you're H-4 now, travelling to and from the US isn't a problem, if she's sponsored for LPR status she puts you down as your spouse so you get it too, so no problem there either.

However keeping your tax home in the US is going to be tricky, as a Canadian living in Canada and having a job in Canada, the CRA is going to consider you resident for tax purposes. You might be able to call the US your tax home because your wife resides there, however it's a tenuous situation, you'd have to get a ruling from the CRA by filing NR-73.

If the work is physically done in Canada then it's a Canadian job and your employer will either have to get a business number and set up a Canadian payroll or you'll have to register as self-employed in Canada and do that bit yourself, and invoice them.

If your tax home remains the US you claim a foreign tax credit there, but as the Canadian tax is higher the tax credit won't fully cover it. Essentially you would pay the total of the Canadian tax, because you work here.

Logistically it might be easier to have your tax home in Canada, but you can't file jointly in the US if you do that, obviously. And if your tax home is in the US then establishing residential ties like a DL and healthcare is basically impossible too.

Thanks Steve, everything you say makes sense. It is definitely a tricky situation for me. I will investigate the ruling route a bit more to see what that does for me. I will not technically be living in Canada though. Will be splitting time between working remotely from the US and traveling to Canada only when needed. I doubt I will spend more than 4-5 months combined in Canada over the course of the year (One year contract job). Not sure if this changes anything...

Not really. Even if you were non-resident you still have to pay Canadian payroll taxes because effectively it is a Canadian job if you're doing it in Canada.

Hi,

I was wondering what did you end up doing? My wife will soon be in the same situation as you described. I'm working in US under TN and she will be joining me under TD. Her Canadian employer wants her to work remotely from US for Canadian projects. She will get paid in Canada to her Canadian bank account.

I would really appreciate your feedback. Thanks.

The manner of payment is not important.

Hi,

I'm still looking to hear back on this arrangement. I haven't been able to get any firm feed back. I would really like to find out if it is possible for a TD visa holder to work remotely for a Canadian company while living in the US.

Thanks.

I am also a TD visa holder. How do I file nonresident taxes with cra since i stay and work in Canada only temporarily about 90 days or so 2 to 3 weeks at a time. My employer has issued T4 with the address of the friend i stay with while i am in Canada.