Hello.....I was wondering if you could answer a question for me....
I am a Canadian citizen, living in Canada thinking of taking a job with a U.S. company under a TN Visa. The company is based out of Texas but it is a consulting job so the work will be at various locations in North America with the bulk of the work being in the Washington State area. I have property in Canada and will continue to live in Canada but fly to the US weekly or bi-weekly. I currently have a L1B Visa and also a U.S. Social Security Card that I obtained from my current job requirements.
My current company has always looked after everything related to taxes so I was never really involved besides signing the paperwork. Is there anything that I should be looking out for with regards to income tax or is it just a U.S. filing and a Canadian filing?
Also, do you prepare taxes on behalf of individuals?
Thanks for your time,
david ingram replies:
You will have to file a US tax return to cover the earnings in the US and also pay state taxes in the states you work in with a state tax return. Washington State does not have a return.
Because you are still living in Canada, your ultimate tax bill is to Canada. You will report all the income again to Canada and claim credit for all state and federal taxes plus the FICA and Medicare fees paid on lines 431 and 433 of your Canadian T1.
Because you are working in the US, being paid on a W-2 is fine but if you were working half time in Canada, I would suggest that you be paid on a 1099 basis (contract employee with no deductions).
We look after your type of return by email, snail mail, fax or courier or in person.
Phone consultations are $400 for 15 minutes to 50 minutes (professional hour). Please note that GST is added if product remains in Canada or a phone consultation is in Canada.
This is not intended to be definitive but in general I am quoting $800 to $2,400 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two interest slips and you lived in one country only - no self employment or rentals or capital gains - you did not move into or out of the country in this year.
$1,000 would be the same with one rental
$1,200 would be the same with one business no rental
$1,200 would be the minimum with a move in or out of the country. These are complicated because of the back and forth foreign tax credits. - The IRS says a foreign tax credit takes 1 hour and 53 minutes.
$1,500 would be the minimum with a rental or two in the country you do not live in or a rental and a business and foreign tax credits no move in or out
$2,400 would be all of the above and you moved in and out of the country.
This is just a guideline for US / Canadian returns
We will still prepare Canadian only (lives in Canada, no US connection period) with two or three slips and no capital gains, etc. for $150.00 up.
With a Rental for $350
A Business for $350 - Rental and business likely $450
And an American only (lives in the US with no Canadian income or filing period) with about the same things in the same range with a little bit more if there is a state return.
Moving in or out of the country or part year earnings in the US will ALWAYS be $800 and up.
TDF 90-22.1 forms are $50 for the first and $25.00 each after that when part of a tax return.
8891 forms are generally $50.00 to $100.00 each.
18 RRSPs would be $900.00 - (maybe amalgamate a couple)
Capital gains *sales) are likely $50.00 for the first and $20.00 each after that.
Just a guideline not etched in stone.
CEN-TA Cross Border Services - Tax, Visas, Immigration