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.
Hello,
I'm a Permanent Resident of Canada and live in Canada. However, United states is my income source. I don't live in US and have no residency status there. My income is from an online business in US and is deposited into my bank account in US. Here are some questions:
1-Do I need to file tax return for US and pay them tax for US income?
2-If yes, how can I avoid double taxation on my Canadian tax return?
3-Does the tax treaty between Canada and US affect the way I should report the income on either tax return?
1-2-3. No. by treaty, this is self-employment income with no fixed base in US. Report it on your cdn return only.
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
Dear Nelsona,
I have to clarify it. The platform I do business on does not belong to me; it belongs to a US registered company. It's similar to US EBAY. I pay them a commission to use their platform. I agree that I'm self-employed.
As I said, you do not have a fixed base in US, thus your self-employed income is not taxable in US.
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