Question regarding information on this site

Macnrayna · Post by **Macnrayna** » Thu Jun 05, 2008 3:13 pm

Hello,
I am about to file some paperwork from 2007 for work prefromed in the USA (less than 183 days with an exemption and a TN visa, etc).

This part of the Sebrinski site lists what paperwork is needed:

http://www.serbinski.com/CdnInUS/CdninU ... n_usa.html

It lists as a document that needs to be sumbitted a copy of the "Canadian T-1 Individual Income Tax Return - including world income and the employment income earned in the United States"

However, I can't find anywhere in the other listed documents where this is called for. I don't want to give the IRS too much information, so do I need to submit my T-1?

Thanks

nelsona · Post by **nelsona** » Thu Jun 05, 2008 3:40 pm

A copy of your Cdn tax return is NOT required for IRS.

Mark probably listed this as a reminder that the income, while earned in US, is indeed subject to Cdn taxation.

The converse however, is required: you do need to submit a coipy of your 1040NR and W-2 to CRA if claiming any US tax as a credit.

nelsona · Post by **nelsona** » Thu Jun 05, 2008 4:14 pm

I would hasten to point out that unless you made less than $10K (or are a contractor), you are NOT exempt from US taxation.

nelsona · Post by **nelsona** » Thu Jun 05, 2008 4:18 pm

The pas=ge you referred to also makes a mistake by saying that to be exempt from tax, the worker must have been paid by a Cdn company. This is not the case. Even if one works for and is paid by a US firm, he is exempt from taxation if he made less than $10K.

nelsona · Post by **nelsona** » Thu Jun 05, 2008 4:21 pm

sorry. Misread that page. His outline is correct.

So, back up to previous post:
<10K>10K: exempt if in US less than 183 days and Cdn employer.

You may still ahve to pay state tax, as they do not participate in the treaty.

Macnrayna · Post by **Macnrayna** » Fri Jun 06, 2008 8:52 am

Thanks Nelson,
But what about the part about not having a fixed base in the USA to work from, doesn't that give an exemption?

nelsona · Post by **nelsona** » Fri Jun 06, 2008 9:08 am

"Fixed base" only applies to contractors. If you are an employee of the US company, this exemption doesn't apply.

So, if you got p[aid wages reported on a W-2, you are an employee. The only way you can avoid US tax (but not FICA) is if your US wages were less than $10K US for the year.