Canadian working as employee in US Income tax return 2017

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juca64
Posts: 6
Joined: Fri Feb 03, 2017 5:54 pm

Canadian working as employee in US Income tax return 2017

Post by juca64 »

Hi, and apologies if this question is rhetoric or it has been answered before (please direct me to the link)
I am a Canadian resident working as a employee for an American company, where should I fill my income tax return in both countries or in the one I am getting payed or the one I am resident?

Thanks for any clue, I appreciate any help.
nelsona
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Post by nelsona »

Where do you physically work, and what type of payroll are you on (US or Cdn)?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
juca64
Posts: 6
Joined: Fri Feb 03, 2017 5:54 pm

Post by juca64 »

[quote="nelsona"]Where do you physically work, and what type of payroll are you on (US or Cdn)?[/quote]
Thanks for your answer, I worked in New Jersey the whole 2017, and I am inside the American Company Payroll as an employee, still working for them as a regular employee.
Should I do my incometax return, there, and also redo it in Canada?
Thanks for your help
nelsona
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Post by nelsona »

So, what makes you a Cdn resident? Are you commuting weekly from NJ?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
juca64
Posts: 6
Joined: Fri Feb 03, 2017 5:54 pm

Post by juca64 »

[quote="nelsona"]So, what makes you a Cdn resident? Are you commuting weekly from NJ?[/quote]
Well since I am allowed to work there thru the TN visa, but I cannot say I am an American resident, I only work there and yes I am Canadian citizen and flying home (Toronto) once a month every month during the year. So all my duties are in Canada the only different thing I do is working for this american company.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
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Post by nelsona »

So, yes, by flying back to US, you are making yourself Cdn resident, so need to file a Cdn tax return as resident of Ontario.

You also meet the IRS definition of tax resident (you can be so on TN) because you meet SPT, and thus either need to file a 1040, OR, file a 1040NR with treaty claim for non-residency, using form 8833.

I would suggest, if you cannot use up all your tax from IRS/NJ/SS/Medicare, etc. that you look at filing an Treaty article XXV 1040NR (which we have discussed here many times, please search).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
juca64
Posts: 6
Joined: Fri Feb 03, 2017 5:54 pm

Post by juca64 »

[quote="nelsona"]So, yes, by flying back to US, you are making yourself Cdn resident, so need to file a Cdn tax return as resident of Ontario.

You also meet the IRS definition of tax resident (you can be so on TN) because you meet SPT, and thus either need to file a 1040, OR, file a 1040NR with treaty claim for non-residency, using form 8833.

I would suggest, if you cannot use up all your tax from IRS/NJ/SS/Medicare, etc. that you look at filing an Treaty article XXV 1040NR (which we have discussed here many times, please search).[/quote]


Thanks Nelsona for your help is a bit very technical for me all these terminologies and abbreviations, but I will figure it out. previous years I use Turbotax to do my IncomeTax returns, Should I keep doing in the same way or should I consult an Taxes specialist?
I shouldn't do any paperwork, (taxes related) in USA?

Thanks again I really appreciate your help.
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