Canadian citizen on TN Management Consultant: Independent Contractor and Tax Filing

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Hadrienlbb
Posts: 1
Joined: Wed Feb 10, 2021 3:53 pm

Canadian citizen on TN Management Consultant: Independent Contractor and Tax Filing

Post by Hadrienlbb »

Hi There,

I recently obtained a TN visa to work in the US, under the Management Consultant occupation, and as an Independent Contractor to the company I'll serve. This job is based in New York and I'll reside in the city, not in Canada.

My understanding is that my "client" will need to give me a 1099 Form for me to file my taxes with IRS. I'm currently trying to get my US SSN (social security number) and confused about what's next:

1) Can I directly bill my client as an individual or can I / should I create a business?

2) Do I need to collect sales tax, and if yes which one(s)?

3) Is it okay to report to the IRS once a year? i.e. pay taxes once a year as opposed to quarterly.

4) I work from home and need to buy equipment (desk/chair/monitor/etc.). Am I allowed to claim these expenses along with part of my rent when I file?

Regarding what I need to do with Canada, I read contradicting information about closing/keeping TFSA accounts. Anything I should worry about there?

Thanks for your help!
nelsona
Posts: 16806
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian citizen on TN Management Consultant: Independent Contractor and Tax Filing

Post by nelsona »

1. Either
2. Depends where you live. I do not know NY sales tax rules.
3. There is a thresshold to observe. Underpaying during the year results in penalties (this is waived the first year, after that you pay quarterly, which is advisable in any event).
4. Sure. IRS has a set of rules on this, a lot like Canada's.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
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