Remote working from US

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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dmarush
Posts: 3
Joined: Sat Jun 14, 2014 11:01 am
Location: US

Remote working from US

Post by dmarush »

Hi,
Our situation: both myself and my wife are Canadian citizens with an US Green Card. I live full time and get my income in California, while my wife travels back and forth between California and Ontario. Her employer/income is in Canada (Canadian branch of US corporation). In the previous years she was spending most of her time in Canada, so I filed her taxes in Canada and got a credit for the foreign tax paid on our joint US return (of course got only a partial credit as US taxes are lower). However, in 2020 she spent just over 6 months in US. If I do the same thing as last year, we will end up paying Ontario taxes on all of her income.
Is there a better way to minimize on the total taxes paid (US+Canada)?
DM
nelsona
Posts: 16947
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Remote working from US

Post by nelsona »

So, just t0 clarify, in previous years she was also paying CRA/Ontario tax on all her income, correct?

So why would you hoping it would be different this year? Because she spent more than 1/2 the year in US? Perhaps. What else has she done to demonstrate breaking Cdn residential ties?
Of course, at a minimum, she will owe Cdn/Ontario taxes on the wages earned while in canada.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
dmarush
Posts: 3
Joined: Sat Jun 14, 2014 11:01 am
Location: US

Re: Remote working from US

Post by dmarush »

Correct, in the past, she was paying CRA on all of her income. Few months of the difference in taxes was not worth the headache. 6 months is a bit different, but we would not want to go the breaking the residence ties route - this year she might be slightly more than 6 mo in Canada. Also, not sure if residency for tax purposes is the same as residency for OHIP eligibility - would not want to lose OHIP.
Was just hoping I am missing something and there is a better way to pay US taxes while in US and Canadian for the time spent in Canada.
DM
nelsona
Posts: 16947
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Remote working from US

Post by nelsona »

So, from what you say she still needs to file fully in Canada, and US, like previous years. Little more difficult this year since, unless she spent less that 183 days in US, the source of her wages while in US switches to US, meaning she has to split the foreign tax credit
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
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