Resident in Canada but getting paid in USA

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taxiscomplicated
Posts: 19
Joined: Mon Dec 09, 2013 9:22 pm

Resident in Canada but getting paid in USA

Post by taxiscomplicated »

Hi all,

I am new to North America.

I am currently holding a work permit in Canada and work visa in USA.
I currently reside in Canada and getting paid in USA.

I understand I will receive a W2 in Jan/Feb 2014. I will fill up form 1040NR and submit the payment or receive a refund to/from the IRS before 30th April 2014.

Now I will need to submit a tax return on the Canada side as well by 30th April. Since I do not have T4 from my employer, how can i file the tax return on Canada?

Do I use my W2 to submit my tax returns on the Canada side? If I had to paid more when i do my tax returns in USA then how do I let CRA know how much tax I had paid in total on the USA side?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Since you reside in Canada, you must report ALL world in come to Canada (regardless of any other country's tax requirements)>

So, you will report (in CDn $) your US earnings, as well as all other income, on your Cdn return. You will be allowed to take credit for the tax you accrued on your 1040NR, plus any state tax, and your FICA payments.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
taxiscomplicated
Posts: 19
Joined: Mon Dec 09, 2013 9:22 pm

Post by taxiscomplicated »

Hi Nelsona,

thank you from your response.

I am very new to North America (Canada and USA), so it will be my first time doing tax reporting here.

I have read online on the tax filing but I need some confirmation regarding the general process.

[u]USA Side[/u]
1) Receive W2 from employer
2) File 1040NR and send it via post before April 30th.
3) Pay extra money online if I owe the tax before April 30th

[u]Canada Side[/u]
1) File Canadian tax return using some free software?
2) Put a copy of W2 and 1040NR into the tax return forms
3) Submit the canadian tax return using the software before April 30th.
4) Receive a notice of assessment from CRA
5) Based on the notice of assessment, pay the tax required.

Is this correct?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You pay the required tax to canada when you submit your tax return, you do not wait until the assessment.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
taxiscomplicated
Posts: 19
Joined: Mon Dec 09, 2013 9:22 pm

Post by taxiscomplicated »

Hi,

So I need to fill up my Canadian address in 1040NR and IRS will communicate via this address with me if i need to pay more?

If there was a mistake in my 1040NR (i actually need to pay more tax), then how do I correct the tax credits after I submitted my tax returns to CRA?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

I think you need to go thru the process before asking anymore questions about the mechanics.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Mark T Serbinski CA CPA
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Post by Mark T Serbinski CA CPA »

NOTE: Your return in the U.S. will depend on the overall time spent in the U.S. in any 12 month period. If you spend over 183 days in the U.S., you may also be considered a resident of the U.S., and this will mean that you will file in the U.S. in the same way as a U.S. resident. Your tax due and the degree of reporting in the U.S. will be determined by your time in the U.S.
Mark
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