Canadian Permanent resident in US, Canadian income

[shanx]

I am working in the US on EAD status and I am a Canadian permanent resident. I have a Canadian company that wants me to execute a simple 1 month project for them.

Questions:

a. Do I need to get paid only through my US employer or can I work with them directly as a Canadian permanent resident and fie Canadian taxes?

b. If I ask the Canadian company to pay my US employer and get paid in a roundabout manner, do I need to file for both US and Canadian taxes?

Please reply as soon as possible -- I need to give a reply to this party soon.

Thanks,
shanx

[nelsona]

a) with ead you can do what you want, and be paid however you wish.

b) you will be paid directly. You should be paid as a contractor, and will owe no tax in Canada. Only fiel a non-resident return if tax is withheld.

[shanx]

Perfect .. I was going nuts thinking about double taxation and worried that I might make a mistake somewhere. Thanks for clarifying it. Now I can peacefully work with this Canadian company and only pay US taxes.

Thanks,
shanx