I'm Canadian on TN commuting to the USA daily. Since the border closure I've been working remotely from Canada. I understand that I now need to claim back all the taxes I paid via my employers withholds while performing my job from Canada and I'll owe that to CRA.
My question is about going forward in 2021. I believe that CRA will require me to pay quarterly installments due to owing so much in 2020 but my employer is still submitting my taxes to IRS. How should I deal with this? I'm not clear on how I would stop my employer from withholding taxes and there's no way I can afford to lend all that money to the IRS until 2021 tax time.
Any advice would be appreciated.
Canada -> USA commuter 2021
Moderator: Mark T Serbinski CA CPA
Re: Canada -> USA commuter 2021
You need to file a W-4 with your employer, lowering the withholding as much as you can. As long as you have withheld 90% of your yearly tax owing, there is no problem.
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