Serbinski Accounting Firms

I am Canadian and my consulting business is incorporated in Ontario. I am doing the vast majority of the work for a single US client, operating from my home office in Canada.
Client pays me on the hourly basis.
My client requested and I submitted W-8BEN form, so I am considered as a foreign company ...

Thank you for your help again.

but actually I am filing both US and canadian per your recommendation.

http://forums.serbinski.com/viewtopic.php?t=2762&highlight=


I have filed 1040NR so I assume now I need to file canadian return and to pay around 10K extra for US income because of the tax rate ...

Thank you Nelsona for the fast reply.

But again my employer gave me this money as a relocation package, but as far as I know relocation expenses are taxable in US, thus he included this anmmount in my W-2 and I paid tax for this.

But for canadian tax purposes relocation money is not an income and ...

I am working in US on TN since June 2007.

My US employer assigned 10000 $ of my US salary to relocation expenses.

But my W-2 doesn't show it .10000 $ is added on top of my total income in the box 1 of W-2.

But I uderstand that for canadian taxes I can use this ammount to reduce my world income ...

Nelsona,

Thank you for your help.

And the very last question I have.

Can I claim some travel expenses (I work in US but my family lives in Canada and I travel back and forth every 2 weeks) when I file the canadian tax.

Thanks again

Nelsona,

Thank you very much for so fast and detailed reply.

So in general the income tax being deducted from my US income will be used as a foreign tax credit for my Canadian tax return, and only if this amount is above the allowed limit then I need to try to reduce to get some US tax return ...

I am a canadian citizen.

Lived and worked in Canada first 5 month of this year.

Since June I am working on TN visa in US as an employee on W2

My family and house are in Canada

I live in US, renting appartment, but visiting my family in Canada quite often, aprox 4-5 days every two weeks.

My ...

Mark,

Thank you very much for your explanations and advice

We live in Thornhill Ontario.
In 2006 my wife provided the engineering consulting services to the firm in Atlanta GA by telecommuting (never been there). She reported the annual earnings of aprox 12000 USD to CRA as self-employed professional income. She didn’t have any other income in 2006.
At ...