Taxes for independent contractor on a TN visa on 1099 basis

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JS96
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Joined: Mon Feb 01, 2021 8:05 pm

Taxes for independent contractor on a TN visa on 1099 basis

Post by JS96 »

I am a Canadian remote worker who will be living in Canada and contracting with a US company, getting paid to my Canadian corporation. I understand that if I was never to step foot in the US, I would simply file Canadian taxes and fill out a W-8BEN-E so that the US company does not have to withhold US taxes. However, as part of my work, I will be travelling into and out of the US for conferences and business meetings from time to time, so I plan on obtaining a TN visa as an independent contractor (Form 1099 basis) as I fall under one of the categories.

If I obtain my TN visa, will this complicate the tax situation any further? Will I now have to file a US tax return as well? I know that I should only be paying Canadian taxes, so I am not worried about double taxation, but simply trying to understand if my being on a TN on a 1099 basis (not as an employee) introduces any new complications or paperwork.
nelsona
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Re: Taxes for independent contractor on a TN visa on 1099 basis

Post by nelsona »

Going to the US occasionally as a contractor does not make you liable for US taxation UNLESS, you spend more than 183 days in any 365 day period, OR you set up an office for yourself.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
nirvana_1959
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Joined: Fri Mar 18, 2016 9:17 am

Re: Taxes for independent contractor on a TN visa on 1099 basis

Post by nirvana_1959 »

If you get TN you may have problem with CBP. They do check at random (one in a million, may be; it happened to my friend) to ensure it is a legitimate set up. You prove it by showing US pay stubs and US bank statements (unless it's clearly stated in TN that its sole purpose is for attending meetings etc.; not sure if this is even possible).
nelsona
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Re: Taxes for independent contractor on a TN visa on 1099 basis

Post by nelsona »

They check everyone. Meetings a is a legit B1 entry reason.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
JS96
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Joined: Mon Feb 01, 2021 8:05 pm

Re: Taxes for independent contractor on a TN visa on 1099 basis

Post by JS96 »

nirvana_1959 wrote:
> If you get TN you may have problem with CBP. They do check at random (one
> in a million, may be; it happened to my friend) to ensure it is a
> legitimate set up. You prove it by showing US pay stubs and US bank
> statements (unless it's clearly stated in TN that its sole purpose is for
> attending meetings etc.; not sure if this is even possible).


Ahh okay - I was not aware of this, and it seems significant given that nelsona said they check everyone. I wouldn’t have US pay stubs (as a contractor) and likely not a US bank account either.

But it sounds like it is best to just avoid the TN altogether in this situation and simply obtain the B1 when crossing when necessary, even if there are no tax issues with obtaining a TN as an independent contractor.
nelsona
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Re: Taxes for independent contractor on a TN visa on 1099 basis

Post by nelsona »

If you are entering on B1, they ASK what the purpose of your visit -- every one.
They will want to know the remuneration arrangement, if any.
If you set yourself up as a business, then YOU are paying yourself, and the US firm is paying your firm.
This is legit for either TN or B1, usually depending on if you live in canada (TN b1) or in US (must TN).

These are immigration questions.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
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