TN visa holder and overseas (not Canada) income

Do TN visa holder have to pay tax on overseas (not Canada) income?

Hi,
I am working for a Canadian company. My wife got an offer for a 1 year research position in USA (she has a J1 visa). My company got me an TN visa (since she is doing business in US) to accomadate my familiy situation. I am working from our temporary home from USA (California) remotely back to Canada.

I am still getting paid in Canadian dollars (no change in my benefits and payroll). I spent most of my time here in USA and rarely travel back to my office in Canada. (I already spent more than 183 days in USA)

My question is do I need to pay federal and state (California) taxes on my Canadian income or can I avoid paying taxes in USA based on the USA-Canada tax treaty?

Kemal.

Do TN visa holder have to pay tax on overseas (not Canada) income?

You have to pay tax on all income, the question is where you pay it. If your tax home is in Canada, you pay Canadian income tax on it, i.e. you declare it on your T1. If you file a 1040NR you don't declare it in the US because it's not US-source. If your tax home is in the US then you declare it on your 1040. There may be other forms you need to fill in as well depending on what it is.