TN, B1 and Taxes

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

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Neo
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Joined: Thu Aug 19, 2010 8:01 am

TN, B1 and Taxes

Post by Neo »

I understand that it doesn't matter if you are on B1 or TN visa, taxation is different subject. You can face taxes or be exempt as B1 or TN. You can enter on TN and still be subject to US-CAN tax treaty and be excempt. Is this correct?
nelsona
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Post by nelsona »

yes, as long as you are not an employee on TN, you follow the same rules as B1.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Neo
Posts: 11
Joined: Thu Aug 19, 2010 8:01 am

Post by Neo »

In dealings with my US customers I am going to fill out W-8BEN to claim treaty on withholdings. How is it different from W-8ECI. Essencially I will be doing business in US so it will be effectively connected income. So what's a difference between W-8BEN and W-8ECI?
nelsona
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Post by nelsona »

I'll let you work that out.

I would be filing an 8233 instead.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Neo
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Joined: Thu Aug 19, 2010 8:01 am

Post by Neo »

Interesting, good idea, just do as contractor, which is basically the same thing that I would be doing. Nelson, can you give me a hint why it's better this way? Can I give customer my business name as proprietor and then fill out 8233?

Thank you!
Neo
Posts: 11
Joined: Thu Aug 19, 2010 8:01 am

Post by Neo »

Interesting, good idea, just do as contractor, which is basically the same thing that I would be doing. Nelson, can you give me a hint why it's better this way? Can I give customer my business name as proprietor and then fill out 8233?

Thank you!
Neo
Posts: 11
Joined: Thu Aug 19, 2010 8:01 am

Post by Neo »

Another problem - how do you enter as contracotr? This would make one nervous after reading CBP WebSite - pretty obvious statement:

https://help.cbp.gov/app/answers/detail/a_id/978

In order for Canadian citizens to apply for a TN visa, they must first obtain proof of a job offer, in the form of an employment letter detailing the terms of employment, duties and length of employment, and documentation showing their qualifications for the profession (often in the form of a university degree, certificate, and/or evidence of former employment) in the job category they are applying for. Self employment is not permitted.
nelsona
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Post by nelsona »

Self=SPONSORSHIP is not allowed. Working as a contractor is not self-sponsorship.

See a TN website, like grasmick.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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