Worked remotely in US for Canadian employer for 8 months

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Joined: Wed Mar 22, 2023 1:23 am

Worked remotely in US for Canadian employer for 8 months

Post by perceptronz »

From January to August 2022, I lived in the US with my husband on L2 visa. During the period, I worked remotely for my Canadian employer (on Canadian payroll the whole time). We have our house in Canada available to us the whole time and I actually went back for a month in May.

At that time we had the naive thought this was the best plan as we knew we would return to Canada in 8 months, but as soon as I started looking into my 2022 taxes, I realized the risks and complication for my employer and myself, but it’s already too late.

Now how can I make the tax situation as less painful as possible? On the IRS side, I have to pay taxes for the 8 months, but employer has withheld CAD taxes already. Can I get it back from CRA? Anything I need to pay attention to when filing my US taxes?
My bigger concern is potential tax implications to my employer. I’ve been here for over 6 years and still am, and love my job. I made an honest mistake because I genuinely had no idea. What’s the best thing I can do now? Be honest to them about my presence in US?

Thanks in advance.
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