US Paycheque Tax Deductions for Canadian

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goodknighte
Posts: 1
Joined: Sun Sep 23, 2018 12:19 pm

US Paycheque Tax Deductions for Canadian

Post by goodknighte »

Hi there. I am a Canadian working in the US on a temporary 1-year visa. My US employer has advised me that there are multiple ways to approach paying taxes here in the US, and that some will pay out better come tax time. Is this true? Do I pay the regular rate of tax to the US, and then work out what I would still owe Canada come tax time? Or is it better if I have no taxes deducted in the US and pay them all to Canada in April? What do people on this forum do? Many thanks!
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: US Paycheque Tax Deductions for Canadian

Post by nelsona »

Remember that regardless of how little or how much tax is DEDUCTED from your paycheck, your primary tax responsibility on these wages is to the US and to the state where you work, so you need to have sufficiently withheld during the year so as not to be penalized at year-end for not having 'estimated' your tax correctly. Neither you nor your employer can willfully avoid withholding on your wages.


You do have a choice, especially if married, on how you file in US, but in all cases, you will pay the 'regular' US tax rate, so you should withhold accordingly.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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