US citizen, resident of Canada, owns sole proprietorship in Canada


I'm being asked for EIN or TIN or SSN (I have the latter) on a fw-9 form. From what I've been able to understand, it looks like I'm exempt from withholding. But do I give them my SSN, my Canadian Business License number or apply for an EIN or TIN? I always declare the US-sourced income on my Canadian tax return.

Thank you for your help!

david ingram replies:

If you are a US citizen, the ONLY "legal" reply is to give them your SSN.

If you are performing all the work in Canada, it is taxable in Canada but as a US citizen you are also required to file a US return each and every year. You ARE taxable on your world income to the US as well but will get foreign tax credits or earned income exemptions by filling out forms 1116 and/or 2555.

In fact, if you have a child or children, you are likely eligible for a child tax credit of up to $1,000 a child just for filing that return.

Goto and read the US/Canada Taxation section in the second box down on the right hand side and read the Oct 1995 newsletter in the top left hand box.


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