Canadian Resident - Working in US ( US Company)

kkemmy · Post by **kkemmy** » Tue Feb 13, 2007 2:48 pm

Hi,

I just stumbled on this forum after 2months of search. Thanks for the responses. I am a Canadian citizen working with a US company commuting since last Nov from Sun - Thurs every week. I did find answers to my questions on Canada Resident - working in US. One question I need to clarify is regarding tax filing. Do I need to file in both countries or my filing in Canada would take care of US? Also, could you expantiate on how best to protect one's income against the falling US$?

Thanks

nelsona · Post by **nelsona** » Tue Feb 13, 2007 5:21 pm

You need to file in US of course, since no doubt you had tax withheld, and it is US-source income. You also ned to file in the state. As a non-resident. If it was less than 10,000US you can claim an exemption from US (but not state tax).

Then report all the income in Canada too, and claim any US tax as a credit.

Don't keep any US dollars, othr than what you need for your expenses in US.

There is no such word as expantiate.

kkemmy · Post by **kkemmy** » Tue Feb 13, 2007 7:10 pm

Thanks Nelsona. A Canadian accountant told me I don't have to file in US since am a non-resident. Can you recommend a good accountant to help with the US tax file? I have my W-2 with me. I worked for 2 months last year and my gross was over 10000.

Also I would like to know why non-residents are taxed as single.

Thanks a lot

nelsona · Post by **nelsona** » Wed Feb 14, 2007 7:32 am

THey aren't taxed as single; worse they are taxed as Married filing separately.

Because there is no obligation to include spousal income.

You are quite free to file jointly, but this would mean reporting ALL world income for the entire year. for both of you.

Look overthis site, threr is a specila procedure for married couples living in Canada, that can save US tax. You will stil have to pay your tax at the CDn rate in the end.

kkemmy · Post by **kkemmy** » Wed Feb 14, 2007 10:27 am

Thanks Nelsona. I have browsed through this site and my understanding is you think the best arrangement is to be on Canadian payroll as a Canadian resident. My employer has a Canadian office, so I will check if its possible to have me on the Canadian payroll.

I would like to ask about the Canada-US treaty. As a Canadian resident working in US and paying taxes, am I entitled to EI? For example, if I lose my job or on maternity leave? Is there any treaty arrangement?

Thanks always!

nelsona · Post by **nelsona** » Wed Feb 14, 2007 10:41 am

If you were working in the US (non-commuting) you would make application for UI thru the state agency, but with HRDC involvement (since you would need to prove that you are looking for work in canada).

If you are a commuter (ie. working i na border state), you would apply thru the state agency directly.

Note that there are no state UI programs (that I know of) that support maternity leave, so you would not qulaify for this based on your US job. You would only be entitled to regular state UI benefits.

By the way, UI is not a treaty issue. It is an aggreement between the states and HRDC (now HRSDC).

http://www.hrsdc.gc.ca/asp/gateway.asp? ... tml&hs=eza