If I’m a Canadian resident working in the US as a contractor, is the customer I provide services to required to withhold tax, FICA or both? If so, and I do not have to pay tax on this income in the US (via treaty), can I file an election with the IRS to have this withholding requirement waived?
From what I have read on this forum, as long as I do not spend more than 183 days in the US, I can make an unlimited amount of money and pay no tax to the US, is this correct?
I also read something about my customer being required to sponsor me for VISA purposes; can anyone provide any more detail about this? Is this the customer’s responsibility, mine or both of ours, and how does one go about sponsoring someone?
Canadian Resident Contracting in US
Moderator: Mark T Serbinski CA CPA
Generally you will need a TN to work in US, even if still living in Canada. Some narrow tasks can be performed as a B2, but unlikely unless you are providing support for previous done work.
To prevent US tax withholding (fica would not be withheld on contract work), you need to file a Form 8233 with your client. This outlines how you are exempt from withholding.
To prevent US tax withholding (fica would not be withheld on contract work), you need to file a Form 8233 with your client. This outlines how you are exempt from withholding.
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Ok thanks so much for the info!
Will still be living in Canada. The contract work will be done remotely from Canada, so I guess I will need to get a TN visa.
So no tax in US as long as I'm not physically present for more than 183 days correct? If so, sounds like I can use form 8233 to improve my cash flow and eliminate the need to have any tax withheld at source.
Will still be living in Canada. The contract work will be done remotely from Canada, so I guess I will need to get a TN visa.
So no tax in US as long as I'm not physically present for more than 183 days correct? If so, sounds like I can use form 8233 to improve my cash flow and eliminate the need to have any tax withheld at source.
If you are working entirely from Canada, then there are no US immigration or taxation issues to worry about. They cut you a check, and you handle the Cdn taxes.
The TN would be to work IN US.
US taxes apply at most only to work done IN US.
The TN would be to work IN US.
US taxes apply at most only to work done IN US.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
There is a chance that I will physically do a small amount of work in the US at some point in the future, so all of this info helps a great deal. Thanks so much!
In summary, if I physically start working in the US I need to get a VISA, but still don’t need to worry about paying any tax as long as I’m not in the US for more than 183 days. Once I physically start working in the US, I would however have to start having tax withheld (not FICA). However, I can complete form 8233 to reduce the withholding to zero. Does all of this sound right?
I guess my last question is do I still have to file a US tax return if I physically work in the US on a VISA and I’m in the US for less than 183 days and file form 8233? Obviously if I did not file form 8233, I would want to file a return to recover all the tax I paid.
In summary, if I physically start working in the US I need to get a VISA, but still don’t need to worry about paying any tax as long as I’m not in the US for more than 183 days. Once I physically start working in the US, I would however have to start having tax withheld (not FICA). However, I can complete form 8233 to reduce the withholding to zero. Does all of this sound right?
I guess my last question is do I still have to file a US tax return if I physically work in the US on a VISA and I’m in the US for less than 183 days and file form 8233? Obviously if I did not file form 8233, I would want to file a return to recover all the tax I paid.