Hello,
I'm not really sure what to do with my 2014 taxes and I'll appreciate any help or direction. I am a Canadian citizen and here's the timeline of of events:
[b]Jan and Feb 2014[/b]
I was in Canada and I worked as a full-time employee for a Canadian company.
[b]Apr and May 2014[/b]
I was in Canada and I worked as a contractor for a US company. They didn't pay me until I got my TN and moved to the US. They set me up as a contractor with my SSN for the first 2 months and I received the full amount for Apr and May without any tax deductions.
[b]Jun to Dec 2014[/b]
I was in the US and I worked as a full-time employee for a US company.
Questions:
- I am guessing I have to file my taxes both in US and Canada. Is this correct?
- How do I avoid getting double-taxed?
- What do I do about the Apr-May period? Do I file it as a freelancer in Canada or as a contractor in the US?
Cross-border taxes confusion
Moderator: Mark T Serbinski CA CPA
So, for 2014, you file a Cdn return as an EMIGRANT, with a may depature date. On it your report WORLD income until that date, as well as departure tax (see CRA emigrant guide for details.
In US, you file a FULL YEAR 1040, reporting world income for entire year, but exclude your Cdn wages from your Cdn job as ell as the contractor income from April/May on form 2555
If there is any US income on your Cdn return, you claim a foreign tax credit for the US tax you pay on that income. You should not have any however. Since that Apr/Mat income is Cdn self-employed income.
In US, you file a FULL YEAR 1040, reporting world income for entire year, but exclude your Cdn wages from your Cdn job as ell as the contractor income from April/May on form 2555
If there is any US income on your Cdn return, you claim a foreign tax credit for the US tax you pay on that income. You should not have any however. Since that Apr/Mat income is Cdn self-employed income.
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