E1 Visa, live in Canada, Worked more than 183 days in US

[FX004]

Hi,

I obtained an E1 visa to replace my L1b and have been working for a Canadian based company in the US and Canada. I split my time between the US and Canadian facilities since 2009. 2013 is the first year that I surpassed 183 working days in the US. I have never filed in the US. I am employed by our Toronto based Corporate office. Because we have Manufacturing plants in Michigan, am I safe to assume that means the company has a fixed base in the US? In that case, I beleive I have to file.

If so, what steps do I need to take? ie forms, itn etc... What is the typical timing to get all of this done? Also, how does the rolling calendar work? I reached 183 days in october and worked between oct and dec 2012, so does that mean need to file a 2012 return also?

thanks.

Sam

[nelsona]

You need to file a 1040NR, reporting your pro-rated wages for the days you worked in US in 2013. That is all that should aapear as income on 1040NR. You are not considered a resident, by treaty, as you will expalin on the 1040NR.

CRA will then give you credit for the US tax on your Cdn/prov return for the year.

If you cannot use all the US tax, and you are married, you may wish to avail yourself of the XXV(2) treaty provision to lower your 1040NR taxrate. I have explained this process in many other posts.

[FX004]

Thanks for your reply,

My company did not withhold any funds from me. Though, I do know that this will pose a cash flow issue for me, do you know if their is any repercussion for the company? Also, do you know if they need to be do anything different for my case? ie: forms, or seperate corporate filings? Just a broad answer is fine. The reason I am asking is that the corporate office is treating this like a hot potatoe, and no one wants to deal with it.

thanks.

[nelsona]

When corporate thinks it is a hot potato (note the spelling, Dan Quayle) then maybe corporate should hire a cross-border accountant instead of having you fish around the internet.

It shouldn't be much of a cash flow issue, if you calculate your 1040NR, and then immediately submit your CRA return accordingly, and then submit 1040NR in April.