I work for a client in US on a contract basis. For CRA this is income through my sole proprietorship and I registered a GST number (zero rated, as it's services for export). I travel once a month for 4-5days to meet and collect data and instructions (on a TN).
My understanding is that for IRS this (the income that's paid while I am in US) is a Non-resident income (as it's US sourced) and I should file 1040NR and report to CRA to foreign tax paid on that amount. Is that correct? Do I need to stay under 31 days this year (I was tax resident of USA for last 3 years) - what happens if I go over: I have to declare world income to US and claim taxes I paid to Canada?
Canadian working for US Company from Canada
Moderator: Mark T Serbinski CA CPA
If you are a Cdn resident, and you do not have a fixed base in US, you should not be reporting or paying any US tax on this contrat income.
So CRA will not grant you any tax credit, as there is no need to pay US tax.
The Substantial presence test does not apply to you, by treaty.
So CRA will not grant you any tax credit, as there is no need to pay US tax.
The Substantial presence test does not apply to you, by treaty.
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