Canadian tax for US resident + spouse working in US

[sainiman]

Hi,

I am canadian PR and I am working in US on H1 Visa.
I have no primary ties in canada (no house and no spouse in canada)

My wife is with me in US but she is working from home for a Canadian Employer. The employer pays her by direct deposit in her canadian bank account.

Is she consider to be a resident of canada ? If she is considered a resident then am I considered a resident too and do I have to report and pay taxes for all my US income in Canada.

Please advise.

Manu

[nelsona]

First of all, the fact that she is working while physically in the US requires that she have authorization from the US govt (USCIS). Does she?

Moreover, if she is being paid as an 'employee' both her and her employer are required to be withholding US taxes (IRS, stste, FICA, Medicare) on that income. Are they?

If she is a contractor (again, she requires US permission to do this) then she will be responsible for all US taxes at year end should be planning for this now.

In neither case should she be paying ANY taxes in canada, because she is not a Cdn-based employeee, is not performing the work in Canada, and does not reside in Canada. Nor do you.

The fact that money is being depositerd in Canada has absolutely no bearing on the taxatiuon or the immigration issues presented here.