I need help with my unique situation. I am a Canadian Resident and I work as an employee for a US company full time. I work from Texas every second week (mon-friday) and from my home in Canada every second week. I do not meet the requirements to be considered a resident of the USA.
The US company I work for withheld the full taxes (Income + FICA) on my income as if the entire amount was Source income to the US. I filed my US taxes using Form 1040NR and claimed only the income for when I was physically in USA as source income (tax person put in a negative credit for NON SOURCE INCOME so it would calculate the correct income tax on only the source income earnings amount). I received a refund on the US income tax that was withheld on the earnings that were not considered Source income (for the dollars earned the portion of the time I worked from Canada only). I plan on doing my Canadian taxes based on my entire US income (converted to CAD as per the rules) and claiming the tax credits for the income taxes I did pay Net to the IRS. I found that I ended up paying FICA taxes on the entire US Income not just the source income (all withheld by my employer).
What is the tax credit amount to use on my Canadian Taxes, is it just the Net Income Tax paid, or does it include the FICA taxes paid also?
Do I need to file a Form 843 to get back the portion of the FICA that was on the Non Source Income?
Do I need to fill out any other tax forms with the USA other than the 1040NR?
When I go to do my Canadian Taxes will I owe CPP on the Income that was earned while in Canada from my US employer?
If so, is my employer suppose to be contributing a portion to the Canadian government for the earnings while I was in Canada?
I appreciate any help in regards to my questions,
This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.
Moderator: Mark T Serbinski CA CPA
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