Dear Experts
I will be working in US and on weekends I will be back home in Canada( basically flying out on Monday and coming back on Fri). I have house and family here in Toronto and one investment property.
What is best possible way to minimise tax in US and Canada.?
1. Should I work with US company as a employee or On Contract
2. What forms do I need to fill for US and Canada
3. Can I take deductions for my travelling expense incurred on my Canadian/US tax form
4. Do I need to joint filing(spouse) on my US Tax return?
5. I have US citizen child – how does it affect my tax
Kindly please advice
Thanks
Jay
Going to US for Work- What is the best Strategy
Moderator: Mark T Serbinski CA CPA
If you work PURELY as a contractor for the US company and keep Cdn residency, this will likely result in the lowest over-all tax:
a. you should only have to pay Cdn and Ontario income tax and most importantly, only Cdn CPP and not SS/Medicare in US. you may have to pay state (but NOT fed tax in US). ALL your expenses would be deductible. You wouldn't need medical insurance, so employee benefits would noy be that useful, so no loss there.
working as an employee for the US firm, while living in Canada would yeild the highest tax, since none of your travel and lodging would be deductible, you would pay SS/Medicare tax as well as IRS tax.
You should be able to exempt yourself from US withholding if you contract. iRS.gov has forms.
a. you should only have to pay Cdn and Ontario income tax and most importantly, only Cdn CPP and not SS/Medicare in US. you may have to pay state (but NOT fed tax in US). ALL your expenses would be deductible. You wouldn't need medical insurance, so employee benefits would noy be that useful, so no loss there.
working as an employee for the US firm, while living in Canada would yeild the highest tax, since none of your travel and lodging would be deductible, you would pay SS/Medicare tax as well as IRS tax.
You should be able to exempt yourself from US withholding if you contract. iRS.gov has forms.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
It is possible to work on Tn and be paid on 1099 basis. See any TN lawyer site like grasmick.com
By purely, I mean that you do noyt look like anemployeee, in theeyes ofeither CRA or IRS.
By purely, I mean that you do noyt look like anemployeee, in theeyes ofeither CRA or IRS.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best