Worked 2 days in Canada, got some Canadian source income..

fordtaurus · Post by **fordtaurus** » Sat Jan 08, 2011 8:46 pm

Hi,

I am a TN status Engineer working in US. Last year, I went up north in Vancouver and kinda did my ex-boss a favor, worked over a weekend and got paid around $1500. This is my only Canadian source income, well, maybe some RBC saving account interest, still waiting for bank's T5.

How should I file 2010 Canada tax return? or should I file? I am, ofcoz going to report this on US side.

I plan to report this income in my US tax return, and use the tax I will pay for this $1500: Total Tax * (1500/Total US+Canada income) as credit and file Canadian side return. Is this correct?

Thanks in advance.

nelsona · Post by **nelsona** » Sun Jan 09, 2011 7:28 am

How were you paid? Was there withholding? If not, then there is no reason to file.

As a US resident, work done in canada on a self-employed basis is taxable in canada only if you spend more than 6 months in the year there and/or you have an business establishment.

You did not. Simply report this as self-employed in income on your US return.

fordtaurus · Post by **fordtaurus** » Sun Jan 09, 2011 7:33 pm

Thanks Nelsona. They mailed me a check (or Cheque :P ) without withholding . Yes, it's just a two days temporary project. So even I was physically in Canada while working I still do not need to report on Canada side? That's great, a lot simpler. Thanks.