183 day rule for Canadian workign in the US 4 days of the wk

yyz2cmh · Post by **yyz2cmh** » Sun Apr 13, 2014 11:26 am

Hello,

I am a Canadian IT consultant living in Canada and working in the US for an American consulting company. I have a company registered in Canada which I use for subcontracting purposes so I am technically an employee of my Canadian company and my contract with the American company is on a corp-to-corp basis.

For the past few years, I have been working remotely a lot for the US company, so did not pass the substantial presence test (I am referring to the 3 year formula provided by IRS). This year however, I will be (a) spending more than 183 days and (b) when adding the number of days from this year plus last 2 years, it will sure to go pass 183 days.

Can someone tell me what this means for me from a taxation point? Do I to pay IRS taxes for the money I made in 2014? Also, since I was doing c2c, does this translate to the money my company made or the money I got paid in Canada by my company (I pay my self less than what my company gets paid)?

Thank you in advance for your help.

yyz2cmh · Post by **yyz2cmh** » Sat Apr 19, 2014 7:15 am

Anyone?

yyz2cmh · Post by **yyz2cmh** » Mon Apr 21, 2014 9:30 am

anyone?

nelsona · Post by **nelsona** » Mon Apr 21, 2014 11:15 am

I'm less inclined to respond to bumping. Your question has been posted and reead.

apkesh · Post by **apkesh** » Mon Apr 21, 2014 11:21 pm

I am not an expert, but I believe there is a 183 day for calendar year and 183 day for total of last 3 year calculation. If you stay over 183 days in a calender year, then you may have to pay taxes. The later however involves only filing a closer connection form and does not involve paying taxes.

Again, you are better off checking with one of the tax experts here.