Reclaiming withholding tax as a W2 employee

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sheri
Posts: 15
Joined: Thu Jun 10, 2010 9:53 am

Reclaiming withholding tax as a W2 employee

Post by sheri »

hello,
I am currently working in the US and receiving a W2 from the company I work for. I live in Canada and commute to the US. I am in the US less than 183 days so I will be filing a 1040NR and filing my Canadian taxes. Currently the company withholds roughly 25%. How much of the withheld taxes will I be able to recoup when I file in Canada?

thank you in advance!
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

If you worked in US and made more than $10K, you cannot be exempted from US taxation on that income, regardless of number of days in US. It is only if you were working for a CDN employer in US for less than 183 days that you could make such a claim.

In any case, you need to file a 1040NR (and perhaps a state return) to figure ut your tax (not claim an exemption from tax).

You then use the tax on these returns (plus fica) as a credit on your Cdn return.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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