hi all, adam here. great forum, so pardon my ignorance.
am a dual/can citizen living and working in chicago. my contract ended here in chicago in october, and am thinking of taking an interesting 3 month contract up in toronto, as much as my wife hates the idea. i doubt they will renew me past feb. however.
maybe i am being simplistic in my questioning, but the employer just asked me for my social insurance number (which i still have). any other implications or advice for me?
i have lined up some corporate housing for 3 months, but what else should i worry about? do i just file my regular 1040 next year?
adam
taking a contract in toronto next month...
Moderator: Mark T Serbinski CA CPA
Temp housing is good, as this will show that you werenot inteding to reside in Canada.
If this is contract work, you should not be taxed in Canada at all, and will pay all your tax in US.
If you are employee, you won't be taxed in canada (although you will be withheld) if your wages in the year are less than $10K.
If this is contract work, you should not be taxed in Canada at all, and will pay all your tax in US.
If you are employee, you won't be taxed in canada (although you will be withheld) if your wages in the year are less than $10K.
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thanks nelson for the rapid follow-up. this is good to know.
so when i drive through the border crossing, with my one piece of luggage, i will tell them that i am coming up for a 'visit', and show my canadian passport. and that's that right? do i really need to have the 'i am coming up here for work' discussion?
silly question, but where do i indicate this 'temp housing'? on my canadian return?
full disclosure this is a 3 month contract-to-hire.
adam
so when i drive through the border crossing, with my one piece of luggage, i will tell them that i am coming up for a 'visit', and show my canadian passport. and that's that right? do i really need to have the 'i am coming up here for work' discussion?
silly question, but where do i indicate this 'temp housing'? on my canadian return?
full disclosure this is a 3 month contract-to-hire.
adam
You are coming to Canada on business, so why avoid saying it. To say otherwise is a lie.
My refernce to temp housing is to show that you are not re-establishing residential ties in canada which would make you taxable in canada on world income. You continue to live in canada.
You will only file a non-resident Cdn return if your a portion of your income is withheld, and that will be to get the money back. US Contractors are not taxable in Canada when there temporarily.
My refernce to temp housing is to show that you are not re-establishing residential ties in canada which would make you taxable in canada on world income. You continue to live in canada.
You will only file a non-resident Cdn return if your a portion of your income is withheld, and that will be to get the money back. US Contractors are not taxable in Canada when there temporarily.
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nelson thanks again for the posting. good advice. clarification: you said
[/quote]
My refernce to temp housing is to show that you are not re-establishing residential ties in canada which would make you taxable in canada on world income. [b]You continue to live in canada. [/b]
[quote]
did you really mean to say "You continue to live in the US?".
also one last question on this thread -- where do I show this temp housing declararion? on both my CAN and US returns?
and for the sake of clarification -- yes, i would be making under 10K CAN for the rest of the 2009 tax year.
btw, is this your hobby, or can i hire you for paid advice?[/quote]
[/quote]
My refernce to temp housing is to show that you are not re-establishing residential ties in canada which would make you taxable in canada on world income. [b]You continue to live in canada. [/b]
[quote]
did you really mean to say "You continue to live in the US?".
also one last question on this thread -- where do I show this temp housing declararion? on both my CAN and US returns?
and for the sake of clarification -- yes, i would be making under 10K CAN for the rest of the 2009 tax year.
btw, is this your hobby, or can i hire you for paid advice?[/quote]
Yes, continue to live in US.
You don't make this declaration anywhere. Its simply something you have in your back pocket should CRA ever decide to request tax from you.
So far it is my hobby. If it weren't I would not be giving my advice here, nor could I in good conscience solicit clients.
One day...
You don't make this declaration anywhere. Its simply something you have in your back pocket should CRA ever decide to request tax from you.
So far it is my hobby. If it weren't I would not be giving my advice here, nor could I in good conscience solicit clients.
One day...
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hi again nelson.
i will be making just under 10K a month, so it looks like my first two months (Dec 09, Jan 10), will be my tax free or tax withheld months as you said. come feb 2010 i will be over this 10k limit, and have to start paying CAN taxes. do i have this right?
i really like the sound of the temporary resident thing. by claiming this, I dont have the hassle of switchng my us bank, brokerage hassles, mailing address, etc. I wonder however if this also prevents me from participating in all the other canadian benefits, like opening a new canadian bank account, getting free healthcare, etc.
i have much research to do! thanks again!
adam
i will be making just under 10K a month, so it looks like my first two months (Dec 09, Jan 10), will be my tax free or tax withheld months as you said. come feb 2010 i will be over this 10k limit, and have to start paying CAN taxes. do i have this right?
i really like the sound of the temporary resident thing. by claiming this, I dont have the hassle of switchng my us bank, brokerage hassles, mailing address, etc. I wonder however if this also prevents me from participating in all the other canadian benefits, like opening a new canadian bank account, getting free healthcare, etc.
i have much research to do! thanks again!
adam
Read my original post. You are a contractor, not an employee, thus the $10K limit does not apply to you. You are tax exempt unless you spend 6 months in canada.
But just for your reference, if you were an employee, and made more than C$10K in Cdn wages any year, all the wages are taxable in canada, not just the amount over $10K.
You are visiting Canada; if you want to join the healthcare system you have to move to Canada and live there. If you have income, you need to pay tax there. Besides, there is a 3-month waiting period.
any one can open a bank account in canada. its not a a benefit.
But just for your reference, if you were an employee, and made more than C$10K in Cdn wages any year, all the wages are taxable in canada, not just the amount over $10K.
You are visiting Canada; if you want to join the healthcare system you have to move to Canada and live there. If you have income, you need to pay tax there. Besides, there is a 3-month waiting period.
any one can open a bank account in canada. its not a a benefit.
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roger that.
i just received the paper work today from my employer, and this all seems clear now. there is a section on the TD1, where i indicate that i am a non-resident (i'll put USA).
so it seems all i need to do then next year is:
1) file my can tax return, but claim i am a visitor/non-resident i guess somewhere on it
2) then i file my regular 1040 here in the us, as if nothing ever happened, although i believe i need to fill out form 2555 or 2555-ez this time around because of the 10k i will make in december!
thanks again for all this great advice nelson.
adam
i just received the paper work today from my employer, and this all seems clear now. there is a section on the TD1, where i indicate that i am a non-resident (i'll put USA).
so it seems all i need to do then next year is:
1) file my can tax return, but claim i am a visitor/non-resident i guess somewhere on it
2) then i file my regular 1040 here in the us, as if nothing ever happened, although i believe i need to fill out form 2555 or 2555-ez this time around because of the 10k i will make in december!
thanks again for all this great advice nelson.
adam
by the way nelson -- looking at the T1 again:
there is a spot i will put my temporay canadian address, a spot i indicate that i am non-resident, and a spot where i put my social ins. number.
when the cra sees my sin attached, wouldnt that mean that they will be expecting a tax return from me for the current year and i would officially be “back on the radar�
man this stuff is complicated.
there is a spot i will put my temporay canadian address, a spot i indicate that i am non-resident, and a spot where i put my social ins. number.
when the cra sees my sin attached, wouldnt that mean that they will be expecting a tax return from me for the current year and i would officially be “back on the radar�
man this stuff is complicated.
As I said, you would be filing as a non-resident, and only if you have taxes withheld by your client. Make sure you use the Non-residwnt return, not the regular genral return.
Earning money in canada doesn't make you resident. But CRA has the right to ask for taxes on money earned in canada, except that the US/Canada treaty will specifically exempt you from tax.
And why would you put your Cdn address? You won't be filing return -- if ever --- until april 2010. Why would you put an temp addrsss. You live in US.
Earning money in canada doesn't make you resident. But CRA has the right to ask for taxes on money earned in canada, except that the US/Canada treaty will specifically exempt you from tax.
And why would you put your Cdn address? You won't be filing return -- if ever --- until april 2010. Why would you put an temp addrsss. You live in US.
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You aren't eligible for 2555, thtis for people who live outside the US. You live in US. If anything you will file 1116 for any Cdn tax you pay. For 2009
I'm wondering by your client giving you a TD1, are you becoming an employee? I thought you were on contract, ie. self-employed.
Which is it?
I'm wondering by your client giving you a TD1, are you becoming an employee? I thought you were on contract, ie. self-employed.
Which is it?
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I think we are getting some things confused. You mentionned TD1 in one post and then used T1 on the next. I'm thinking you meant TD1 all along.
So "contract-to-hire" means employee, then?
So, you will have tax deducted, so a 2009 non-resident return will be needed, on which you will exempt the wages, since they will be less than $10K. You will get all your taxes back. you may have some CPP and EI contributions that aee not refunded, so you can use these as foreign tax on your 1116 in US.
So "contract-to-hire" means employee, then?
So, you will have tax deducted, so a 2009 non-resident return will be needed, on which you will exempt the wages, since they will be less than $10K. You will get all your taxes back. you may have some CPP and EI contributions that aee not refunded, so you can use these as foreign tax on your 1116 in US.
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Yes, I meant TD1 all along.
Yes, contract-to-hire means employee.
Yes, I live in the US. But I guess I wanted to put my corporate apartment address in canada on the TD1 form, even though I am non-resident. i mean the government will need to send me something in the mail next year right when i prepare my taxes. I thought it would be easier to use my temporary address in canada, rather then my chicago address for this.
also when i mail this td1 back to the toronto office they may think something is fishy if they see a blank address on the form.
you're right this is getting very confusing.
Yes, contract-to-hire means employee.
Yes, I live in the US. But I guess I wanted to put my corporate apartment address in canada on the TD1 form, even though I am non-resident. i mean the government will need to send me something in the mail next year right when i prepare my taxes. I thought it would be easier to use my temporary address in canada, rather then my chicago address for this.
also when i mail this td1 back to the toronto office they may think something is fishy if they see a blank address on the form.
you're right this is getting very confusing.
The TD form is kept by the employer, so you can put whatever adress you want. But since your employer is going to mail you things in February of 2011 (yes 11) based on that address, why would you bother.
If you were staying in a hotel would you give the hotel address?
It is unlikely that CRA willsend you anything in the mail to tell you to file. They simply don't do that anymore, just like IRS.
The mail between canada and US works pretty good you know.
I think you are making it confusing for yourself.
You live in Chicago. Period.
If you were staying in a hotel would you give the hotel address?
It is unlikely that CRA willsend you anything in the mail to tell you to file. They simply don't do that anymore, just like IRS.
The mail between canada and US works pretty good you know.
I think you are making it confusing for yourself.
You live in Chicago. Period.
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