TN in USA + freelance income in Canada : how to file taxes?

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penny
Posts: 4
Joined: Tue May 14, 2013 10:50 pm

TN in USA + freelance income in Canada : how to file taxes?

Post by penny »

Hi all,

I am currently a full-time salaried employee living and working in the US on a TN visa (I moved to US from Canada a few months ago).

Due to the nature of my work, I still have some freelance clients in Canada, for whom I do occasional work and get paid in Canada. (I travel to Canada to do the work, if necessary, but this doesn't happen very frequently). In addition, I have property back in Canada, which I am planning to rent out.

What would be the proper way of filing my freelance Canadian income, and my rental income? Do I have to file them in Canada? If so, would I also have to report my US income here in Canada? Is there a way to avoid being double taxed?
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

All this income will be reported on your 1040 of course.

As to your Cdn filings, the freelance income need not be reported, since you do not spend either enough time, not have a premises in Canada.

The rent however, must have monthly withholding remitted to CRA. There is a page on the CRA international site which explains 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
penny
Posts: 4
Joined: Tue May 14, 2013 10:50 pm

Post by penny »

[quote="nelsona"]All this income will be reported on your 1040 of course.

As to your Cdn filings, the freelance income need not be reported, since you do not spend either enough time, not have a premises in Canada.

The rent however, must have monthly withholding remitted to CRA. There is a page on the CRA international site which explains this.[/quote]

Thank you for the reply nelsona. The freelance jobs I do for clients in Canada is not related to my salaried position here in the US, for which I have a TN visa. If I travel to Canada to do the freelance work, I wonder if I should still report my freelance Canadian income in the US on my 1040?
nelsona
Posts: 18688
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You live in US, therefore you report ALL income to IRS on 1040, regardless of whether it is or should be reported in canada. Bank interest, RRSP income. self-employment. etc. From anywhere. That is what a 1040 means.

To CRA, you would only report Cdn-source income that does not have NR tax automatically withheld, but since you do not live in Canada, and don't have a premises in Canada, even that Cdn income is not reported in canada.

There is no such notion that reporting income in one place absolves you of reporting it elsewhere, especially when the elsewhere is your tax home, the US.
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
can484
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Joined: Fri Feb 07, 2014 12:25 am

Post by can484 »

Just to clarify, is it legal (not a violation of your TN status) for a Canadian citizen to freelance for a Canadian company in Canada, while in the US on a TN visa ?

If so specifically where on your 1040 do you declare this income ?
nelsona
Posts: 18688
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

It is legal, and it is self-employed income. Statr twith schedule C, and the software will guide you.
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
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