My_question_is: Applicable to both US and
Canada
Subject: Getting Paid to the
incorporated company while on TN Status in
US....
Expert:
[email protected]Date:
Tuesday January 22,
2008
Time: 02:04
PM -0000
QUESTION:
Hello,
I have a TN Visa and I am working
on a 1-year contract in US (state of New Jersey). The US Company who has hired
me is giving me two options for the pay. The first option is to be on the hiring
company’s payroll and file individual tax with W2 and my SSN (usual procedure).
The second option is to incorporate in US and it will pay to my incorporated
company and I will NOT receive any money directly on my personal name. My
question is:
1. Is it legally possible for a TN holder foreign worker in
US to incorporate and get paid to his incorporated company (to take advantage of
small business related additional tax savings!)?
2. Do I need to file my
personal tax return in US even if I do not have any personal income? Do I still
need to apply for my personal Social Security Number and Card?
3. What
additional procedure related to Canadian Revenue Agency?
An early
response will be highly appreciated. Thanks in
advance!
Regards
------------------------------------------------------------My_question_is: Applicable to both US and
Canada
Subject:
Taxation
Expert:
[email protected]Date:
Wednesday January 16,
2008
Time: 08:37
PM -0000
QUESTION:
Hello There,
I was wondering if I could get
some guidance.
I had left Canada in 2000 to work in the US on an LI (spec
knowledge)Visa. I had lived there and work there and still do since then.
However in 2002, My wife pursued her grad studies in BC,Canada and we exchanged
visits.
Here are some facts:
1. I spent more than 10 months in the US (for
residence determination).
2. I have had permanent residences in 2 separate
states in the US all these years.
3. I have filed and paid US taxes and have
been deemed a US resident for tax purposes.
4. I have maintained a bank
account in Canada to pay for my wifes Tuition.
5. Every year since 2001 at
Canadian Tax time (when my wife files her Canadian Tax return), I call revenue
Canada and give them these facts and asked them if I have to file a Canadian Tax
return and they respond with a No I do not have to do anything. However they ask
me to call the International tax office and confirm. I do just that and they
respond that I do not have to do anything as i am not a resident. (I wish I had
taped them).
In any event I have recently received a letter from CCRA
stating that I owe taxes from 2002-2006. I have informed them that i am a
resident of the US for tax purposes. However because of my significant ties (My
Wife, and bank account) I have been determined to be a factual resident.
Here
are my questions.
1. What form do I need to fill out?.
2. Do they expect
me to declare all my US income, after converting it to Canadian dollars (when I
did not have the luxury of using all that converted amount which was very high
in the former years), as I had spent most of it in USD living in the US.
3.
How can I be a resident of two separate countries for tax purpose that have a
tax treaty?.
4. CCRA refuses to listen to my questions (besides trying to
find out what form to fill out) and simply states that inspire of being a
US tax resident, due to my significant ties, i am a factual resident of Canada
and have to file and pay the horrendous amount of taxes assessed. I checked all
the forms and they are correct
5.
6. I have a CCRA collections officer
chasing me, while i am trying to get answers to my situation.
What are my
options besides filing, which I intend to do as I do not want to face criminal
charges.
Any help or advice would be appreciated.
Thanks and
Cheers
--------------------------------------
In 2005 I was living in Ontario, Canada and joined a U.S.
company. I continued to live in Canada through July of this year. I
seem to have significant tax “issues”. Partly because I know the IRS does
not withhold as much tax as Revenue Canada requires (I knew I would owe) and
secondly, because I am not an expert tax preparer and I should have gone to the
experts. Revenue Canada has now completely disallowed my tax payments to
the IRS as a foreign tax credit and are claiming I owe them a fairly significant
chunk of money.
I think I need to go back and have a professional do my 2005
U.S. returns, which I never did. I also will need some help/support with
Revenue Canada to make sure that I get my foreign tax credit for the monies
paid. I will also have a professional prepare my 2007 return when the time
comes because in this year, I have actually become a resident alien. I am
working and living in Pennsylvania now under and H1-B.
Can you
help?
I will need an estimate
of costs – I do not have a large budget but thought I would start by
asking
My returns are not difficult at all. I have simple
income/deductions from a T4 and W2 in 2005 and just a W2 in 2006. I have
some charitable donations and that’s about it. Pretty simple returns (I
think). My wife does not work, and I have two kids, aged 11 and
7.
Please advise if you can help.
Thanks in advance,
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