I am a Canadian Citizen and am currently working for a US company on a TN Visa. I live in Canada not the US; I just travel back forth for work. I pay for my own medical insurance in Canada. My company is withholding Social Security and Medicare Taxes. Under my circumstances, should my employers NOT be withholding these taxes and am I entitled to a refund for all that has already been withheld?
Any help would be greatly appreciated.
Social Secruity and Medicare Tax Withheld
Moderator: Mark T Serbinski CA CPA
As an <b>EMPLOYEE</b> of a US company working <b>in</b> US, you/they have no choice but to pay these.
If you were a contractor living in Canada, you could opt out and continue to pay CPP, but this is not your situation.
Don't feel bad. After 18 months you will have enough SS credits to qualify for some SS when you retire, and the SS and Medicare tax is usaable as a foreign tax credit on your Cdn return, so, in effect, you are funding a pension plan, and the Cdn gov't is paying for it.
<i>nelsona non grata</i>
If you were a contractor living in Canada, you could opt out and continue to pay CPP, but this is not your situation.
Don't feel bad. After 18 months you will have enough SS credits to qualify for some SS when you retire, and the SS and Medicare tax is usaable as a foreign tax credit on your Cdn return, so, in effect, you are funding a pension plan, and the Cdn gov't is paying for it.
<i>nelsona non grata</i>