Cross Border taxes query

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RKMSND007
Posts: 4
Joined: Sun Aug 26, 2018 12:32 am

Cross Border taxes query

Post by RKMSND007 »

Hola all, I just received my TN visa and working Corp-to-Corp with a company in US soon. Let me explain my situation

My corporation is based in Ottawa. My TN visa is with a employer in US with whom I shall be working for the next 3 years for client projects and I do not have any offices in US.

I am not moving to US..shall be flying Monday-Thursday every week to Seattle.My billable hr rates would be wired to my Corp Business account in Canada every month from US.

I have filled up Form W-8BEN (Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting) to claim US-Canada Tax Treaty Benefits.

How is the Canada and US taxes to be paid at the end of the year. A bit confused in this Cross Border tax query.

Cheers,
RKMSND
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Cross Border taxes query

Post by nelsona »

You will not be liable for any IRS taxes IF you do not exceed 183 days of presence in US during any 365 day period. You may be liable for state taxes in the location you work.

Otherwise, if your exceed the 183 days, the income become US-sourced, and you must pay IRS tax on that self-employed income, and then get credit for it on your Cdn return.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
RKMSND007
Posts: 4
Joined: Sun Aug 26, 2018 12:32 am

Re: Cross Border taxes query

Post by RKMSND007 »

Thanks for the update...Is W-8BEN the correct form for me
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Cross Border taxes query

Post by nelsona »

Depending on how you are paid, Form 8233 might be better.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
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Re: Cross Border taxes query

Post by nelsona »

Or, if corp, W-8-BEB-E
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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