Filing requirements

[Duckman]

Hi,

I'm currently working on 1099 in the US and taxed as a Canadian citizen and resident. Sinc e I claimed tax exemption due to nafta treaty, the company will not issue me a 1099. Is this the proper way to go? Do I even need to submit a US tax return if they do not issue me a 1099?

Thanks,

Simon

[nelsona]

It would be hard to say you are working "on 1099" if they aren't issuing you one, no?

Until 2007, you would be correct in saying that as a Cdn resident NOT working as an employee of the US company, you have no Federal tax liability (the state may have other ideas).

however, beginning as early as 2008, merely maintaining a long-term relationship with one company AND being presenty in US for more than 1/2 of any 365-day period will make you fedaerally taxable. This is irrespective of the method of payment. Even employeed of Cdn companies spending enough time in US will become taxable.

[Duckman]

I inquired and they said they will treat me as a 1099 vendor, but will not issue me a 1099. Do I need a 1099 for canadian tax purposes?

If they do not issue me a 1099, do I have any obligation to file a US tax return?

This would be for the 2007 tax return, so I'm not too concerned about residency status yet...

[nelsona]

Federally, I think you are fine.

Your state may have other ideas.

[Duckman]

I'm in MA, where non-residents are only taxed on ma sourced income, so I think I should be okay since I'm being paid by a company in NY. Is my understanding correct?

Thanks,

Simon

[nelsona]

Where were you in 2007? The premise of not paying US tax is that you lived in CANADA, not MA, not NY.

If you lived in canada, then your NY-sourced tax may be liable for NY tax.

If you lived in MA, then you can't be claiming non-residency, and are liable for MA tax on all income while resident.