Canada, about to accept a job with a company that is based out of Texas on a TN Visa. Most of the work will be performed in Washington State but there will also be work at various other client locations across North America as well. I plan to still live in Canada and commute to Washington State or whatever other state the client at that particular time is in. I am being paid in U.S. dollars into a U.S. bank account that I opened that is connected to my Canadian account so I can transfer funds on-line.
1. Should I be setup as a regular W2 employee by my employer in the U.S.?
2. Do I have to file both U.S. and Canadian taxes?
3. Any other suggestions or recommendations?
Thanks,
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david ingram replies:
Just no time to answer this specifically but this older similar question will help. Very similar question -
QUESTION: Hello,
I am Canadian PR holder and currently work in USA on H1B visa. I get W2 from my current employer in the state of Texas.
I am planning to move to Windsor, Canada and drive to detroit, MI everyday to work for the same employer who has an office in Detroit.
Will I get a W2 for Detroit, MI and I have to file federal tax for US and state tax for MI and also file tax in Canada ?
Can you please provide me the process which should be followed ?
Thnx.
Regards,
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david ingram replies:
You will get a W2 and file a 1040 and Michigan MI 1040 plus a Detroit City Tax return D-1040NR
Then you will report the income again in Canada and claim a foreign tax credit for the taxes and FICA and Medicare paid in the US on line 431 of your Canadian return.
Your tax will be higher than it is in Texas because Texas has no State tax and Michigan and Detroit have taxes and Ontario has taxes.
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CEN-TA Cross Border Services - Tax, Visas, Immigration
http://www.centa.com/article.php/20070322174840453