Dual Citizen Lives/Works in US - Any Tax Obligation When Visiting Canada?.

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.

Moderator: Mark T Serbinski CA CPA

Post Reply
LBB
Posts: 5
Joined: Sat Mar 25, 2017 5:33 pm

Dual Citizen Lives/Works in US - Any Tax Obligation When Visiting Canada?.

Post by LBB »

My daughter is a dual Can/US citizen living in the US and working as an employee for a US firm. She is on the firm's US payroll with US taxes and deductions. She is a non-resident of Canada for tax purposes and therefore does not file a Canadian tax return. She visits Canada a few times a year for a total of about 30-40 days. My question is: if she has to work remotely during some of the time she is visiting Canada does she then have to file a Canadian tax return for that income or does that only happen if she is there for more than 183 days?
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Dual Citizen Lives/Works in US - Any Tax Obligation When Visiting Canada?.

Post by nelsona »

It would only be if she was present more than 183 days.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
LBB
Posts: 5
Joined: Sat Mar 25, 2017 5:33 pm

Re: Dual Citizen Lives/Works in US - Any Tax Obligation When Visiting Canada?.

Post by LBB »

Thank you !
kenlor
Posts: 2
Joined: Fri Jan 31, 2020 6:58 pm

Re: Dual Citizen Lives/Works in US - Any Tax Obligation When Visiting Canada?.

Post by kenlor »

I am planning on taking a job in the USA. I am a US citizen but my wife is not. I have no assets in Canada other then my RRSP's. My wife is Canadian and has a business in Canada.
She will be visiting me 3 to 4 times a year. I plan to do the same every year going back to Canada on my breaks.
My question is, her Canadian online marketing company may require her to attend to accounts while she is visiting me. She will not be solicitating any clients while visiting in the USA but she may need to keep working on her current clients while visiting. Is there anything that could be problematic with this issue.
We are also well aware of the limited timeframe she can visit me as we anticipate 4 visits of 2 weeks each should be well under the 4 month maximum duration.
Thanks
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Dual Citizen Lives/Works in US - Any Tax Obligation When Visiting Canada?.

Post by nelsona »

First, I'm not aware of any "maximum duration" or number of days that your spouse would be limited to in visiting you, and it certainly not four months.

If you are worried that her visits would be scrutinized at the border due to her being married to an American now living in US, that can occur at ANY time, with a visit of ANY duration. Each time she enters she would need to have iron-clad proof that she is returning to Canada and has irrefutable ties there (her ability to work online from anywhere obviously harms that notion). This is an immigration question.

As to her right to do some teleworking while in US, this is also an immigration question.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Dual Citizen Lives/Works in US - Any Tax Obligation When Visiting Canada?.

Post by nelsona »

As to taxes, I don't see what either of you would do as causing any cross-border issues: she would continue to report her world income in Canada ONLY, and, once you move, you would report your world income in US ONLY.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
joeg
Posts: 6
Joined: Thu Dec 07, 2023 5:34 pm

Re: Dual Citizen Lives/Works in US - Any Tax Obligation When Visiting Canada?.

Post by joeg »

She cannot state she will be working remotely. US don't have a remote visa like some countries have. Any mention of working is not good.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Dual Citizen Lives/Works in US - Any Tax Obligation When Visiting Canada?.

Post by nelsona »

She is going to visit her husband. No need to mention any other reason.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
kenlor
Posts: 2
Joined: Fri Jan 31, 2020 6:58 pm

Re: Dual Citizen Lives/Works in US - Any Tax Obligation When Visiting Canada?.

Post by kenlor »

The best conservative option I am gathering from this website and immigration is that while in the USA for short periods of vacation my wife will just be visiting me. She will keep her online clients silenced until she crosses back into Canada.
She has no desire to move to the USA. She also has many documents to show she will continually return to Canada to run her company.
Thank you!
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Dual Citizen Lives/Works in US - Any Tax Obligation When Visiting Canada?.

Post by nelsona »

Sure.
Just be aware that any foreign spouse visiting their US citizen spouse living in US, is pre-supposed to be immigrating. It doesn't matter the duration of frequency (although frequent visits and departures actually helps their case for remaining non-immigrant). Each entry is scrutinized.

As you indicate, the visiting spouse has to carry clear evidence that they have no intention of immigrating, and hope the admitting officer accepts it.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
ND
Posts: 291
Joined: Thu Feb 21, 2013 5:28 pm

Re: Dual Citizen Lives/Works in US - Any Tax Obligation When Visiting Canada?.

Post by ND »

LBB: Canada can deem someone with less than 183 days a Cdn tax resident and as well someone with 183 days should be a Cdn tax resident. Now, switching to someone who is clearly a non-resident of Canada, the 183 days generally isn't relevant. A nonresident of Canada pays tax on income received from sources in Canada - the latter term includes remuneration for work physically performed in Canada regardless of location of employer and papering of W-2 or T4 b/c generally, Canadian income received by a non-resident is subject to Part XIII tax or Part I tax. Not sure why nelsona said no.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Dual Citizen Lives/Works in US - Any Tax Obligation When Visiting Canada?.

Post by nelsona »

Our US resident would be exempt from Cdn taxation on the basis of her firm not having fixed base (PE) in canada AND the employee not being present in Canada for 183 days in any 365 day period (ie. establishing their own PE).

Vice versa is also true.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Dual Citizen Lives/Works in US - Any Tax Obligation When Visiting Canada?.

Post by nelsona »

Article XV(2)(b).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Post Reply