American who worked in Canada Tax Questions

TimNielsen · Post by **TimNielsen** » Thu Feb 21, 2008 2:34 pm

First of all, this is a great forum, and I'm learning a lot. Here's my situation in a nutshell:

I lived in Vancouver for almost all of 2007 working on a film project. The project should have taken 5 months, it took a year. I was paid in US dollars through a US payroll company, but they withheld 15% for Canadian taxes.

I'm now looking into my tax liability for Canada. There seems to be some information that leads me to think that because I'm basically a contractor, I might be able to get that money back? Even though I was payrolled through a company, it was only for that job, and that company is a entertainment payrolling company. No other Canadian taxes were withheld. According to the payroll company, I was designated 'on location'. I was hired only for that film project, hadn't worked for that company before or since.

So my questions, in case anyone has experience with something similar:

1) How does one determine if one fits the 'contractor' status, as opposed to 'employee' status?

2) I'm wondering if this is something I can file myself from the US, or if this is something I should hire someone like the firm who runs this forum to help with? I have an accountant in the US already who will handle my US taxes. But if it's a simple form to claim a refund on my Canadian taxes, maybe I can do that myself?

I've filed for a Canadian tax identiy number to be ready. But obviously since i don't live in Canada, don't expect to, I'd prefer to give them as little money as possible tax-wise...

nelsona · Post by **nelsona** » Fri Feb 22, 2008 10:41 am

I guess the question becomes: Is your income reported to your on a 1099 or a W-2?

TimNielsen · Post by **TimNielsen** » Fri Feb 22, 2008 12:46 pm

Well my income is reported usually both ways, but on this job, because I'm a union member, and was paid through a payroll company, it was reported on a W2. Is that in and of itself enough to say I was an 'employee' and not a contractor?

Tim

nelsona · Post by **nelsona** » Fri Feb 22, 2008 1:45 pm

To me it is. I question why any money would have been withheld for Canada in this case.

nelsona · Post by **nelsona** » Fri Feb 22, 2008 1:46 pm

... however, because you stayed in canada so long, you can't exclude it from Cdn taxation, soi you will need to file in canada and pay tax on these wages.

TimNielsen · Post by **TimNielsen** » Fri Feb 22, 2008 1:53 pm

Thanks. That's about what I expected. They withheld 15% on the payroll company because they realized I would be in Canada more than that length of time, that's my guess.

I was just reading some of the rules about 'independent contractors' and trying to figure out if that applied to me.

Guess I need to hire someone to help minimize the damage.

Here is one more question, I'm trying to figure out which I should file first, my Canadian or my US taxes? I understand that they can offset each other, but I can't figure out which I should deal with first.

nelsona · Post by **nelsona** » Fri Feb 22, 2008 1:56 pm

There is no specific order.

But given that you will not have any foreign tax credit on your Cdn return, since it will have only the Cdn wages on it -- since you are non-resident -- I would complete this one first.

Then use whatever tax you come up with as your basis for form 1116 on your 1040.