Work In US, Live in Canada

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AnilNew Member
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Posts: 1
Joined: Wed Oct 19, 2005 1:11 pm

Work In US, Live in Canada

Post Wed Oct 19, 2005 1:20 pm

Hi:

Is it possible to work in the US under a TN visa while still living in Canada? If so, does anyone know what the tax implications would be (i.e. with which government should I file?).

Thanks!

Anil.
Duncan_BCCanuckAbroad Regular
Posts: 43
Joined: Fri Dec 10, 2004 9:41 pm
Location: Duncan, BC

Post Wed Oct 19, 2005 4:20 pm

I did exactly that. If you live in Canada, you pay Canadian tax. If you are a business, then you are exempt from US withholding tax if you have the right forms. If you are an employee in the US but you live in Canada, you would pay US tax but this would be a credit towards your (higher) Canadian taxes.
The TN rules say that you can't intend to live permanantly in the US. Lots of travel actually helps you meet this
rule.
nishantSenior Member
Posts: 84
Joined: Sat Aug 05, 2006 8:51 am
Location: Ontario

Post Sat Aug 26, 2006 9:14 am

You need to file tax returns for both US and Canada. Since you have employment income in US, you have to pay taxes there. In addition, you are resident of Canada so you have to file Canadian income tax return.

You can claim tax credit for tax paid in US in your Canadian return. Since Canadian tax rates are higher than US, you may land up in paying net tax to CRA when you file return.

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