TN Visa , State Tax on W2? Living in Canada .

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karanNew Member
Posts: 1
Joined: Thu Dec 11, 2014 3:43 pm

TN Visa , State Tax on W2? Living in Canada .

Post Thu Dec 11, 2014 4:07 pm

I have a question , that I haven't found a clear answer on anywhere so far.
I've searched everywhere , so as a last resort I'm asking a question here now. ( I like to research as much on my own first)

1) Canadian going to work on a TN Visa working for USA Company (HQ in California)
2) Living Full time in Canada
3) Working on Projects majority Remote, but sometimes onsite
4) Applied for USA SSN Number

I understand as an Employee I would be paid in USD and receive a W2 , Fill out my Canada Taxes with Foreign Tax Credit info and fill out the following forms

1040NR - U.S. Nonresident Alien Income Tax Return
Form 8840 -Closer Connection Exception Statement for Aliens
Form 8833 - Disclosure of Treaty Based Position
Form 8233 Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual

So here is my question.

What does a USA company do for State Taxes & Federal Taxes since I don't live in a USA State.
Do they just deduct Federal Taxes or do they use their HQ of California as my Home State and fill out my W2 accordingly.

Or do they have to create a Canadian Business Entity? They are not keen on Independent Contracting

I appreciate anyone's response. I know its a lot easier if you move to the USA, but that's not in the cards right now, and I don't want cut ties to my Canadian Residency.
kjlengNew Member
Posts: 1
Joined: Thu Feb 11, 2016 8:10 pm

Re: TN Visa , State Tax on W2? Living in Canada .

Post Thu Feb 11, 2016 8:12 pm

I have having the exact same scenario as the author. Is there any updates on this topic?

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