Tax Implications Of Living In Canada But Being US Employee TN Status

[bluespanic]

I am a Canadian who recently received a TN visa in order to work for a US company. The work is entirely remote and, as the lawyer who prepared my TN application told me, I would be able to remain in Canada while being registered as a US employee from an immigration standpoint.

My question is on how this affects taxes. Is it legal to remain a Canadian tax resident while living in Canada but working for a US company and commuting into the country for 4 months of the year?

[nelsona]

You will continue to need to report all your income in Canada, and the income you earn while in US to IRS.

[bluespanic]

Thanks for answering. But that is allowed from a tax standpoint? I wouldn't be violating tax laws by living primarily in Canada?

[bluespanic]

nelsona wrote:
> You will continue to need to report all your income in Canada, and the
> income you earn while in US to IRS.

Thanks for answering. But is my plan allowed from a tax standpoint? I wouldn't be in violation of tax laws by choosing to live primarily in Canada?

[nelsona]

If you stayed in Canada and never went to work in US, then yes, you would be required to be on a CDn payroll.

If you comute however, you can be on US payroll. BUT you must report the wages earned while in Canada as Cdn wages, and pay Cdn tax first.

[bluespanic]

nelsona wrote:
> If you stayed in Canada and never went to work in US, then yes, you would
> be required to be on a CDn payroll.
>
> If you comute however, you can be on US payroll. BUT you must report the
> wages earned while in Canada as Cdn wages, and pay Cdn tax first.

Thank you for your help!