Per Diem Allowance for work in US

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atlanta2012
Posts: 4
Joined: Wed Mar 07, 2012 7:45 pm
Location: Atlanta

Per Diem Allowance for work in US

Post by atlanta2012 »

I am in US on a TN Visa for 1 year term. My husband remains in Canada and we maintain a home there. My employer is designating a portion of my hourly wage as "per diem" since I am working away from home (basically maintaining a second residence while I am here). This will reduce my US taxes fairly substantially from what they have shown me. I am told this is ok as long as it only lasts for the 1-year. If they extend my term that will end.

Questions:
1. While it reduces my US taxes, i will file in Canada as well. Does Canada honour that as non-taxable income as well?

2. Since the per diem is a daily allowance they are giving me an hourly pay rate + the daily maximum per diem if I work more than 4 hours in a day. However, if I work overtime that is paid only at the low hourly rate as I am considered exempt from overtime given the position I'm holding. Is it better to have them just pay me a higher hourly rate and then claim the per diem on my own when i file my taxes?
nelsona
Posts: 18685
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

1. No. The tax you save in US will merely be taken by canada.
2. Dunno.
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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