TN works for Canadian company on the side?

[fordtaurus]

Hi,

I currently work in US and plan to claim non-resident status this year. However, there's a small Canadian company wants me to do some small projects for them. So I have two questions:

1. Is this ok/legal for a TN worker?
2. How would this impact my Canadian tax return? Can I still be a non-resident and just file income tax for the small amount of cash I would get from that company?

Thanks a lot!

[nelsona]

They can hire a non-resident without problem, and pay you

However, if this enterprose has any US affilaites, or if you or they are benefitting from your physical location in US, you do not have work authorization to do this legally, abd cannot get such authorization unless they get you another TN.

It become an immigration issue, not tax.

[fordtaurus]

Thanks Nelsona. No, the projects will be in BC, not in US. And it's a 100% Canadian company.


[quote="nelsona"]They can hire a non-resident without problem, and pay you

However, if this enterprose has any US affilaites, or if you or they are benefitting from your physical location in US, you do not have work authorization to do this legally, abd cannot get such authorization unless they get you another TN.

It become an immigration issue, not tax.[/quote]

[nelsona]

Then you are fine immigration-wise.

Tax-wise, you will only pay tax in uS. The Cdn firm *might* withhold tax because you are non-resident (they shouldn't), but you would get this back by filing a non-redisent return and applying the treaty exemption.

[fordtaurus]

Thanks.

[quote="nelsona"]Then you are fine immigration-wise.

Tax-wise, you will only pay tax in uS. The Cdn firm *might* withhold tax because you are non-resident (they shouldn't), but you would get this back by filing a non-redisent return and applying the treaty exemption.[/quote]