TN status, working remotely for a US company

zsha · Post by **zsha** » Wed Apr 20, 2016 4:53 pm

I am looking to file my Canadian and/or US taxes. Here's my situation:

I live in Canada and work remotely for a US employer. I have a TN status (which I got in April last year) and my employer has been withholding taxes for me at "nonresident alien" rates. I spent a total of less than a month in the US last year, during which I estimate I would've made less than $10,000 while actually in the US.

Do I have to file a US tax return at all?

I was reading this (https://www.irs.gov/Individuals/Interna ... ent-Aliens) and it seems to imply that I don't need to file at all. But then, what happens to the taxes that were withheld?

nelsona · Post by **nelsona** » Wed Apr 20, 2016 6:58 pm

Well, you wouldn't need to file had you (a) been paid and withheld correctly by your employer as a CDn employee, not a US one, or (b) if no US taxes had been withheld.

Now, you will have to file a 1040NR to get all or most of the taxes back, explaining whey you should not be taxed.

You will also have to file a CDn tax return, where MOST of your taxes will be owed (on april 30th) and wait foe the US refund.

agrisiva · Post by **agrisiva** » Thu Apr 21, 2016 11:14 am

I don't see a big problem with this situation. Just file your 1040-NR, and then file your CRA resident tax return. Withholdings are immaterial, only a tax return will be a solid proof of your status and confirmation of the actual taxes you owe. I am not sure how you can expect a US employer to withhold correct Canadian amount. Do they care what the tax regulations are outside US when they employ foreigners.

nelsona · Post by **nelsona** » Thu Apr 21, 2016 1:01 pm

agrisiva, there is a problem.
Foeign companies hiring Cdn resident employees performing their work in Canada are supposed to collect and remit CANADIAN taxea and CPP/EI.
There are many payroll companies in Canada that are set up to provide this service.

The problem that our poster faces is that he has had withheld $1000's of US tax that he doesn't have to pay, and he has had ZERO withheld in Canada, where he will have to pay.

He owes that Cdn money and more NOW (along with CPP and EI), but will have to wait MONTHS to get the refund back from IRS.

speak with knowledge please.

nelsona · Post by **nelsona** » Thu Apr 21, 2016 1:04 pm

http://www.taxtips.ca/personaltax/emplo ... canada.htm
quotes the applicable law.

agrisiva · Post by **agrisiva** » Fri Apr 22, 2016 11:00 am

hey Nelsona, who are you? Are you a qualified tax consultant? Are you properly trained in both US/Canada cross-border tax issues?

nelsona · Post by **nelsona** » Fri Apr 22, 2016 12:09 pm

Feel free to ignore my posts, I will do the same for yours in future.

agrisiva · Post by **agrisiva** » Fri Apr 22, 2016 12:35 pm

hey Nelsona, you are an arrogant moron indeed. If you don't have the guts to identify yourself, you don't have the right to criticize others.

nelsona · Post by **nelsona** » Fri Apr 22, 2016 2:04 pm

Sure I do (where was my criticism, by the way?), as do you, quite apparently.

And posting a reference from the law speaks for itself.

Re-read your original response in this thread, and be honest with yourself. It was totally worthless (since we are now in the criticizing realm).

Bye now.