Message
David,
I run a consulting business in Vancouver and I have had a few US
clients and they are now requesting that I fill out a W-8 or a
W-9. I do not have a visa or reside in the US and only enter to
go onsite for the events to ensure that they run according to
plan but all the work I do is from home. What forms do I need to
fill out for these clients and how should I file this income,
either in Canada or the US or both. Also how much would you
charge to file my taxes in this situation assuming I am a single
male who has a full time job in Canada and uses the consulting
income as a supplement. Any light you could shed on this would be
greatly appreciated.
Regards,
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david ingram replies:
You may or may not be legal in the states - You have not given me
enough information to tell if you are in the B1 category but if
you are doing any hands on work while there, you have a problem.
It is likely that you should get a Management Consultant TN visa
which would allow you to attend these events and advise
management "what to do next" but would not allow you to move
anything, plug anything in, unpack a box or pit up a sign or
banner.
Fill out whatever form the US clients want you to fill out to
keep them happy. You do not have a US SSN or ITIN but should
file a US 1040NR tax return. As a self-employed person, you will
not have any US Federal Tax to pay unless it is determined that
you are an entertainment person. If you are in the entertainment
business (sports or theatre or musical), you will be taxable in
the US on everything if your earned more than $15,000 US. If you
are not in the entertainment business, then you are not taxable
in the US if you had no fixed base (office, etc.) in the US under
Article XIV of the US / Canada Income Tax Treaty.
The bad news is that "in either case" you would be taxable in the
state. California in particular is very conscious of going after
"events" people.
----
I usually quote $800 to $2,000 fro US / Canada Income tax
returns.
Self employment returns tend to be in the $1,200 range
Treaty returns tend to be in the $1,200 range as well and you
might have two or three states.
Although this idea of multi state tax returns is foreign to the
Canadian Concept, it is not without a similar situation in
Canada.
When Americans come to Canada for the entertainment circuit or
things like the Royal American Shows which can be found at the
Canadian National Exhibition in Toronto, Manosphere in Manitoba,
the Calgary Stampede and the PNE in Vancouver, they have to file
a Multijurisdictional tax return and pay tax to Ontario,
Manitoba, Alberta and British Columbia.
We also have had some 137 Canadian Airlines and Air Canada flight
personnel who live in the US and fly for Air Canada now. Because
they are non-residents of Canada we have to do a
Multijurisdictional tax return for them and pay tax to every
province and territory where their flight lands. If a Air Canada
flight takes off in Toronto and lands in Vancouver, the employee
has to pay tax to Ontario on have the flight and BC for the other
half of the flight. The CRA has a special department set up to
look after these particular employees specifically.
Hope this helps you understand. the situation. you do have to
deal with it.
You should get some good information by going to www.centa.com
and reading the "entering The US" section in the second box down
on the right hands side. Reading The US/Canada Taxation section
will also give you a little help although it is aimed at US
citizens in Canada which is the reverse of your situation.
------------.
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa
Specialists
US / Canada Real Estate Specialists
Home office at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 10 PM 7 days a week (please do not
fax or phone outside of those hours as this is a home office)
email to taxman at centa.com
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed
information or consultation and is to be regarded only as general
comment. Nothing in this message is or should be construed as
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