Dual citizen (US/CAN) working for US firm remotely from CAN

USCANIT · Post by **USCANIT** » Wed Oct 17, 2012 5:30 pm

I am a dual citizen (US/CAN) working for US firm remotely from Canada. I am a full time employee for this US company and I am receiving a W2 just any other US employee. I am not receiving any T4 from Canada. I plan to travel back to US only on occasion, thus being in Canada more than 183 days a year.
QUESTION:
How to file taxes?
Am I legal (from a tax perspective) since I do no have a T4 from a Canadian company?
Should I buy a condo in US so I can declare this as my primary residence even if wife and children are livnig in our Canadian house?

JGCA · Post by **JGCA** » Wed Oct 17, 2012 5:53 pm

You are working from Canada for a US company and receive a W2 so you are a US citizen but a CND resident you file your 1040 claim the taxes paid in the US as a foreign tax credit on your CND T1. Canada taxes you on your worldwide income so the fact you have no T4 is because teh employer is in the US and did not issue you one but you still report it on both returns.

You can not buy a Condo in the US to say you are not a resident of Canada this has no effect on your filing requirements.

USCANIT · Post by **USCANIT** » Wed Oct 17, 2012 9:49 pm

I think this part is clear that I need to file taxes in both countries and I am fine with that.

My question was more around receiving a T4 vs. not receiving one from my employer and looks like a T4 is NOT needed to file a T1. I requested my employer to transfer me to our Canadian division for next year so we can make the process a little easier at tax season.

I just move this year but I will be less than 183 days in Canada vs. my spouse who has been in Canada more than 183 days. My understanding is we should always file separately isnâ€™t? Does she need to put my salary on her T1?

nelsona · Post by **nelsona** » Wed Oct 17, 2012 9:52 pm

Be careful. canada can assume correctly that they are working in canada, making the income Cdbn source, and deny US taxes as a credit.

You need to straighten this out: they must either put you on a Cdn payroll, or pay you as a contarctor.

as to moving to US, assuming you can get a US work visa this would be possible, making YOU a non-residnet as long as you spend more time in US and your family visits you in US and not the other way around.

But, ideally you need to be treated as a Cdn worker.

USCANIT · Post by **USCANIT** » Wed Oct 17, 2012 11:13 pm

Thanks Nelsona that is what I was thinking... I have a couple options here
1) Switch to a T4 provided by the same employer but from a Canadian office
2) Switch to independant and take care of tax business myself
3) Buy a condo close to the border and work there 183 days a year and stay non-resident in Canada - not sure that would work out with the family situation...
4) Move the entire family back to US and avoid a 49.75% taxation in Canada/Quebec
5) Find a new job in Canada

nelsona · Post by **nelsona** » Thu Oct 18, 2012 1:15 pm

Note what I said, YOU canbe non-resident while you family stays resident.