Canadian employee on L1 visa, got paid in the Canada

[lysia]

Hi, I am an Canadian work for Canada Co. The Canada co has US company, so I got L1 visa to work in the US sometimes at request. My salary was paid through Canadian company. So I got T4. However, my company also issued W2 to me which stated a salary that I never received.

To add complication to this case, my husband is an US citizen lives and works in the US, I lived half year in the US and half year in Canada. My company requested me to file US tax return separately from my husband's one. It seems that by doing so, we would suffer huge loss ( less refund or incur tax payment) comparing to filing jointly.

Question:

1) Is it right that company would issue a T4 with salary amount that's triple to my actual salary?
2) Is it correct that my company issue W2 even though I never received those?
3) Can I file joint filing in my case to avoid the loss?

Thanks very much.

[nelsona]

1. one or the other of the T4 or W-2 would be informational, helping you to determine what was US-sourced, and what was Cdn. But it should be accurate.
2. See 1.
3, Your company cannot force you to file separately, unless they are willing to incur the payment of the extra tax and penalty.

[lysia]

Thanks for the quick reply. Its very helpful to hear the confirmation from professional tax experts.

1) Is it common practice that company issue T4 with much higher salary than I actual
salary ?
Based on your experience, would you be able to understand and explain the logic why my co would "gross up" my salary in T4, way higher than my actual salary?

Thanks a lot.

[nelsona]

1. No it is not common, you should obviously question this (and there should be notes and codes on your T4 that explain all this. it may include moving expenses. Or it may include groiss up to cover any extra tax. But it should only be money that YOU received, either in salary or expense reimbursement.

[lysia]

Thanks very much for confirming that. Its very helpful.

I will check with canadian company on that.