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.
183 day rule for Canadian workign in the US 4 days of the wk
Moderator: Mark T Serbinski CA CPA
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.
Again, you are better off checking with one of the tax experts here.