Canada -> USA commuter 2021

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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sjantzi
Posts: 67
Joined: Wed Feb 20, 2013 11:44 am

Canada -> USA commuter 2021

Post by sjantzi »

I'm Canadian on TN commuting to the USA daily. Since the border closure I've been working remotely from Canada. I understand that I now need to claim back all the taxes I paid via my employers withholds while performing my job from Canada and I'll owe that to CRA.

My question is about going forward in 2021. I believe that CRA will require me to pay quarterly installments due to owing so much in 2020 but my employer is still submitting my taxes to IRS. How should I deal with this? I'm not clear on how I would stop my employer from withholding taxes and there's no way I can afford to lend all that money to the IRS until 2021 tax time.

Any advice would be appreciated.
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canada -> USA commuter 2021

Post by nelsona »

You need to file a W-4 with your employer, lowering the withholding as much as you can. As long as you have withheld 90% of your yearly tax owing, there is no problem.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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