I hold a TN and my TD wife is considering an offer to do some part time administration and research work for a small canadian company while remaining in the US. We have been deemed non-residents of Canada for three years. Her income will likely be less than $10K. As this income will likely be taxed in Canada, will my US salary (world income) be subject to Canadian tax as well?
Has anyone else on the board attempted such an arrangement?
TD Telecommuting Work in Canada
Moderator: Mark T Serbinski CA CPA
Just to clarify, youy have been 'determined' to be non-residents, not 'deemed' as this has special meaning.
There are Immigration issues involved with anyone doing work while physically in US, so you ahd better have this run by a lawyer.
That said, if she is working in US, or if she is contracting her services, she should not be paying any tax in canada, since she is not present in Canada. This has nothing to do with the $10K limit.
In any event, even if she worked a copule of months in Canada, and even if she were taxed on those wages in Canada, this would not subject your world income to Cdn taxation.
Her income, regardless of its Cdn treatment will of course be subject to US taxation with credit given for any Cdn tax, as well as state income tax. If done correctly, she should also be subject to SS and medicare tax, or self-employment tax.
Do you see why I say you need legal advice on this, since she will need a SSN, which she can't get as a TD.
<i>nelsona non grata</i>
There are Immigration issues involved with anyone doing work while physically in US, so you ahd better have this run by a lawyer.
That said, if she is working in US, or if she is contracting her services, she should not be paying any tax in canada, since she is not present in Canada. This has nothing to do with the $10K limit.
In any event, even if she worked a copule of months in Canada, and even if she were taxed on those wages in Canada, this would not subject your world income to Cdn taxation.
Her income, regardless of its Cdn treatment will of course be subject to US taxation with credit given for any Cdn tax, as well as state income tax. If done correctly, she should also be subject to SS and medicare tax, or self-employment tax.
Do you see why I say you need legal advice on this, since she will need a SSN, which she can't get as a TD.
<i>nelsona non grata</i>