Canadian in the US on greencard

doummorel · Post by **doummorel** » Fri May 27, 2016 11:23 pm

Hi,
It is my first time on a forum. Not sure exactly how it works.
Also, I know nothing about taxes.
I got married to an american and am moving down to Florida. The guy I used to work for in Canada asked me if I could come work like 2 days per month with him.
How could I avoid filling taxes in Canada? I am reluctant on puting to much info here...
Thanks

nelsona · Post by **nelsona** » Sat May 28, 2016 10:05 am

Work in Canada is taxed first in Canada.
If he makes you an employee, you are allowed to earn $10,000 Cdn in one calendar year and not owe any tax in Canada. That would only apply in 2017 and afterwards, unless you didn't work at all in 2016.

All income would still need to be reported on your joint tax return in US with spouse.

You also need to file a departure return for Canada for the year you leave. Lots of info here on that process. Happy browsing.

nelsona · Post by **nelsona** » Sat May 28, 2016 10:14 am

If he makes you a contractor, (non-employee) you can earn as much as you want in Canada and not pay tax, as long as you spend less than half your time in Canada.

Either way, there might be taxes withheld, but these would be gotten back when you file.

doummorel · Post by **doummorel** » Sat May 28, 2016 12:03 pm

Ok, good. Thanks!
Then, if let's say I am incorporated in the US and work as a sub-contractor in Canada, I would be able to file taxes only in the US if understand correctly? I would definitely spend less than half the year in Canada, 2 days/month.

nelsona · Post by **nelsona** » Sat May 28, 2016 1:05 pm

But then you are having to file corporate tax.

Why not just be self-employed. So much simpler.

doummorel · Post by **doummorel** » Sat May 28, 2016 1:59 pm

As self-employed I could still only file in US? I thought if you were self-employed US worker paid in Canada you had to file in Canada as well. Except if making less than 10k, which would not be the case...?

nelsona · Post by **nelsona** » Sun May 29, 2016 4:34 am

Self employed is contractor, I already described that.

You may have tyo file in Canada in any case. Bi=ut you would not be taxable on this income. There is a difference.

And you need to file in 2016 anywys, since you were in Canada until you left.