CRA Supplemental Guidance, section VII cross-border workers
Moderator: Mark T Serbinski CA CPA
Re: CRA Supplemental Guidance, section VII cross-border workers
So, you are simply a commuter. You will end up paying Cdn/Prov tax as well as cali tax. Yikes.
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
Re: CRA Supplemental Guidance, section VII cross-border workers
As you mentioned, the call to "come home" was for Canadians and since I am a Canadian citizen who was working in the US on a TN work permit, that applies to me.
Regarding tax obligations, you are right that I will end up paying federal & state tax in the US as I previously was and I will claim it as foreign credit in Canada.
On a side note, do you know what is the definition of commuter by CRA rules? Is there a defined threshold as to how frequently you need to be going back and forth? Or is it that you are considered a commuter if you maintain a permanent home in Canada and travel to the US routinely for work?
Regarding tax obligations, you are right that I will end up paying federal & state tax in the US as I previously was and I will claim it as foreign credit in Canada.
On a side note, do you know what is the definition of commuter by CRA rules? Is there a defined threshold as to how frequently you need to be going back and forth? Or is it that you are considered a commuter if you maintain a permanent home in Canada and travel to the US routinely for work?
Re: CRA Supplemental Guidance, section VII cross-border workers
Anyone living in Canada and working in US is a commuter.
The call to come home was for Cdn residents on vacation. You said you lived in Cali. No Cdn gov't would tell a foreign resident to quit their job in US. Be serious.
The call to come home was for Cdn residents on vacation. You said you lived in Cali. No Cdn gov't would tell a foreign resident to quit their job in US. Be serious.
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
Re: CRA Supplemental Guidance, section VII cross-border workers
Fair enough.
Thanks for the help, Nelsona.
Thanks for the help, Nelsona.
Re: CRA Supplemental Guidance, section VII cross-border workers
In Section VII from this CRA Document they wrote:
"The CRA will provide additional guidance at a later date for impacts on affected individual’s 2021 tax years. However, affected individuals should expect that the income sourcing rules in the Canada-United States income tax treaty will be applied should their working arrangements change to allow them to work permanently from Canada."
Has anyone seen any additional guidance given for 2021 tax year? I tried to call CRA about this and they didn't know this document even existed. For 2021 so far my U.S. employer has had me working remotely from Canada due to COVID-19 and thus I wonder how my 2021 taxes will be affected. Will CRA defer people with my tax situations to "business as usual" like the 2020 tax year or will income sourcing come into effect? Would love to hear if anyone is in the same situation as me because it is hard to know how much U.S.A. tax I should be withholding from each W-2 paycheck (none of it or a lot lol?) and how will Medicare/Social Security/401k be effected.
"The CRA will provide additional guidance at a later date for impacts on affected individual’s 2021 tax years. However, affected individuals should expect that the income sourcing rules in the Canada-United States income tax treaty will be applied should their working arrangements change to allow them to work permanently from Canada."
Has anyone seen any additional guidance given for 2021 tax year? I tried to call CRA about this and they didn't know this document even existed. For 2021 so far my U.S. employer has had me working remotely from Canada due to COVID-19 and thus I wonder how my 2021 taxes will be affected. Will CRA defer people with my tax situations to "business as usual" like the 2020 tax year or will income sourcing come into effect? Would love to hear if anyone is in the same situation as me because it is hard to know how much U.S.A. tax I should be withholding from each W-2 paycheck (none of it or a lot lol?) and how will Medicare/Social Security/401k be effected.
Re: CRA Supplemental Guidance, section VII cross-border workers
Your question requires a crystal ball.
When calling CRA, if you should evn bother, make sure you speak with International desk, no other telephlunkies will know what you are talking about.
You should be looking into some other form of remuneration, because there is no restrictions for you to go to US to work, and CRA knows that, thus will view you as choosing to work from Canada, making your income Cdn-sourced, and not US-sourced.
When calling CRA, if you should evn bother, make sure you speak with International desk, no other telephlunkies will know what you are talking about.
You should be looking into some other form of remuneration, because there is no restrictions for you to go to US to work, and CRA knows that, thus will view you as choosing to work from Canada, making your income Cdn-sourced, and not US-sourced.
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
Re: CRA Supplemental Guidance, section VII cross-border workers
From Day 1, CRA has asked US employers to obtain waivers for their employees "stuck" in canada. Has your form done this?
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