Taxes for Canadian in Canada working for US employer

canstudent · Post by **canstudent** » Sun Oct 09, 2011 12:03 am

Hello,

I'm a Canadian citizen who worked a consulting contract for a self-employed American employer while I was physically in Canada. I received under $5,000.

I understand that I am subject to Canadian taxes, exempt from US taxes but still need to report the income and exemption claim to the IRS.

Is this correct? Any advice would be appreciated, including which forms I may need to file stateside.

Thanks for your help.

nelsona · Post by **nelsona** » Sun Oct 09, 2011 12:43 am

If you are simply cut a check for your services, there is no US filing obligation.

canstudent · Post by **canstudent** » Sun Oct 09, 2011 1:21 am

Thanks for the swift response, nelsona.

To give a little more context, my US-based employer was working as a consultant on this project for a large international NGO. He then contracted me and wired the money directly to my Canadian bank account. Under advice from his accountant (who I'm not sure has expertise in US-Canada cross-border tax issues), he is currently under the impression, after having paid me in full, that he should have withheld taxes and that I also need to file in the US.

If I'm not subject to US taxes though, and don't need to file as nelsona suggests, then there would be no need for him to have withheld and I will just be responsible for any applicable taxes in Canada, yes?

Thanks.

nelsona · Post by **nelsona** » Sun Oct 09, 2011 9:18 am

He *should* have withheld until yoy filed (with him) an 8233 form.

But since he did not withhold, and since theservices were not even performed in US, there is nothing you (or even he) need to do now.

canstudent · Post by **canstudent** » Sun Oct 09, 2011 1:31 pm

Thanks so much, nelsona.