I am trying to figure out the best way of approaching being paid by a US corporation that I did contract work for last month. (in Canada) I am a Dual citizen, living and paying taxes in Canada, Do NOT have a SIN. I understand that as a US citizen, I should be submitting tax forms to the IRS. I was born in the States, but have lived in Canada from the age of 1, and wasn't even sure I had citizenship until a few years ago.
The corporation I worked for last month sent me a W8Ben to fill out. It states clearly that as a US citizen I should be filling out a W9.
Here's the question. As a sole proprietor in Canada, how do I prevent tax withholding using the W-9? From what I have learned from this website, I should be paying taxes to Canada for this contract, but I am not sure how to avoid tax withholding when I fill out the W-9.
(the other issue is that I have to get up to date with the IRS - get a SIN and all that - but I'm also trying to get paid in a timely fashion and I want to do it by the book)
Dual citizen working contract for US corp in Canada w9 issue
Moderator: Mark T Serbinski CA CPA
hmm, maybe the question was too oblique...
I live in Canada.
I pay taxes in Canada.
I briefly worked for an American company in Canada.
Why is the American company asking me to fill out either a w8BEN (which I can't, because it is a form for foreigners ONLY) or a W9 (which seems to involve them remitting taxes to the IRS)
What makes me an "exempt payee" in the US? Or what forms do I give an American company so that they won't withhold tax from my invoice?
Or... As an independent contractor, they shouldn't be withholding tax from me anyway?
Thanks for your time, I have spent days trying to figure this out, and many unhelpful discussions with the contracting company!
(For reference - a W8BEN certifies that one is not liable to the IRS for Taxes since they are not US citizens. The W9 is a request for a Taxpayer ID number and certification of tax exemption
I live in Canada.
I pay taxes in Canada.
I briefly worked for an American company in Canada.
Why is the American company asking me to fill out either a w8BEN (which I can't, because it is a form for foreigners ONLY) or a W9 (which seems to involve them remitting taxes to the IRS)
What makes me an "exempt payee" in the US? Or what forms do I give an American company so that they won't withhold tax from my invoice?
Or... As an independent contractor, they shouldn't be withholding tax from me anyway?
Thanks for your time, I have spent days trying to figure this out, and many unhelpful discussions with the contracting company!
(For reference - a W8BEN certifies that one is not liable to the IRS for Taxes since they are not US citizens. The W9 is a request for a Taxpayer ID number and certification of tax exemption