David Ingram. From xxxxxx xxxx. Need Tax Help - david ingram expert US CANADA cross border non-resident income tax help and prep
Likely - I assume you are a Canadian with A
You can find my suggested price list at -
this case a 1099 is not usually the way you should be paid if you are actually
living there and in a full time position,.
One of the terms of a TN is
that you can NOT be self employed.
A 1099 implies
On the other hand is you are living in Canada with your
office in Canada and you are a management consultant going to the US for a day
here and a day there, a 1099 is quite
these older questions
will help a little.
My_question_is: Applicable to both US and
Subject: Getting Paid to the
incorporated company while on TN Status in
Tuesday January 22,
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
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?
additional procedure related to Canadian Revenue Agency?
response will be highly appreciated. Thanks in
Theoretically you can have a Subchapter S US corporation
1. the terms of the TN Visa are that you are working
for the company who wrote the letter that got you the visa. If that company pays
another company, 'you' are not working for the company for which your visa was
issued. Since a One Man company does NOT qualify for a TN, don't do
2. Even if you did that, a Subchapter S corporation is a
flow through entity. The company does NOT pay US tax and theoretically, if
you are working at the employer's place with the employer;s tools, you will not
have any real tax deductible expenses. Filing a tax return and claiming
expenses might go through but one of the other rules of a TN is that you can NOT
be self employed.
3. If you are truly just there for a year
and that s part of two years and you have left a wife and children behind, you
will need to report the income to Canada. If you are intending to stay in
the US and are effectively leaving Canada with your family following later, you
may file a factual resident return (until your family joins you) but will not be
taxable in Canada because of Article IV of the US Canada Income Tax Convention
exemptions. If you are single, you have likely left.
older question might help
My_question_is: Applicable to both US and
Wednesday January 16,
I was wondering if I could get
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
Here are some facts:
1. I spent more than 10 months in the US (for
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
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.
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.
How can I be a resident of two separate countries for tax purpose that have a
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
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
Any help or advice would be appreciated.
I agree that you are a factual resident of Canada BUT, and it is
a BIG BUT, you are A FACTUAL RESIDENT SUBJECT TO THE BENEFITS OF A TAX TREATY as
described in the government's own T1 General guide.
For the 2005 year it
is the top left hand paragraph "D" on page 10.
the Canadian returns and report all of your income and exempt it all on line 256
under Article IV of the US / Canada Income Tax Convention
3. You can't be under
the treaty - However, intent is important. If your wife is just
studying and intending to move to the US when finished and you have a green card
application in process, you are absolutely (in my opinion) only taxable in the
US. It also helps if she spends as much or more time visiting you in the
US as you spend coming up to Canada to visit her. I tell people in your position
to stay out of Canada and have your family visit you in the
4. I disagree if you are intending to stay in the
USA. -- If, on the other hand, there was
never any intention to stay in the USA and you are intending to come back to
Canada in a year and your wife never visited you in the USA and you made no
effort to get a green card, the CRA might have a point but only might. Your
physical presence in the US clearly makes you a taxable resident of the US. Your
job means that your financial affairs are in The US. It would help if you
had filed a factual return each year since you left.
6. That is his job. Hopefully, the arbitrary
assessments they have sent you are new enough you can file formal notices of
objection - i.e. within 90 days of their issuance.
Get the returns done
ASAP. Glad to to do them for you if
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.
I will need an estimate
of costs – I do not have a large budget but thought I would start by
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
Please advise if you can help.
Thanks in advance,
1. What you are asking for is what we
do. I can not tell if you were physically working in the USA in
2005, 2006 and up to July 2007 and commuting or if you were telecommuting and
working in Canada. It is also different if you had a spouse and children
in Canada or if you were in the US for most of the time and just kept your old
house in Canada while waiting for the issuance of the H1B, etc. In other
words, if you were in the USA most of the time and came back to Canada
sporadically,you may still have had ties to Canada but are not necessarily
'living' in Canada for tax purposes under Article IV of the US/Canada Income Tax
Convention. You may be a FACTUAL Resident exempt from Canadian Tax under
Article IV of the Treaty.
And, if you were not sleeping in Ontario 153
nights a year, you did not qualify for OHIP. If you did not qualify for
OHIP in 2006 for instance, it is not reasonable that you should be taxable in
Ontario but having a wife and two children in Ontario guarantees that the
CRA will try and tax you. However, if your intention was to move and your
wife and children were only remaining in Canada until the house sold or until
your wife finished a course at Ryerson or something specific, you may not be
taxable in Canada.
2. In general, I quote $900 to $3,000 for
a US / Canada income tax return and there is more clarity below. Fixing
something generally costs more than preparation in the first place if both
countries are involved. If your US return is correct, you are likely
looking at $500 or $600 as a minimum and $1,000 to $1,200 as a high to repair
the Canadian return.
You should go to www.centa.com and read the US/CANADA Income TAX
section in the second box down on the right hand side.
Pay attention to
the Wolf Bergelt Case where he was not taxed in Canada when he moved to the US
even though his wife and four children were still living back in Ottawa.
You will find this in just about the exact middle of the section. And, on the
other hand, David McLean was taxed when he came back after 7 years in Saudi
Arabia. It is important to recognize the differences between living in a
treaty and a non-treaty
david ingram's US / Canada Services
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