Canadian on TN visa working in both Canada & US. Taxes?

Potanza · Post by **Potanza** » Tue Feb 01, 2011 8:34 pm

Hi, I'm a Canadian resident working with an Amarican consulting Company. I have a TN visa and I work in Canada and in the US always coming home for the weekends.

My employer withholds US taxes when i deliver work in the us and withholds canadian taxes when i'm in Canada.

As a Canadian resident can I ask my employer to only withholds taxes to canada no matter where I work? If so, based on which law or form?

If not, I guess i'll have file taxes in both countrues. Will I have to declare my total earnings in Canada because I'm a resident?

nelsona · Post by **nelsona** » Tue Feb 01, 2011 9:36 pm

The employer is acting corectly.

You will pay US tax on your US income, and will report all world income on your Cdn return, getting credit for the US taxes.

Potanza · Post by **Potanza** » Tue Feb 01, 2011 9:49 pm

Will I need to file an income tax return in the US?

JGCA · Post by **JGCA** » Tue Feb 01, 2011 11:24 pm

Yes in order to get credit in Canada you must prove the tax you paid to the US by filing a 1040NR

nelsona · Post by **nelsona** » Wed Feb 02, 2011 1:22 pm

When I say "You will pay US tax on your US income", that means filing a US return.