Hello,
What are the reporting requirements to US or CN for work done as an Independed Contractor for a US firm while a resident of Canada?
Thanks,
Reporting for CDN resident working for US firm as Ind Cont.
Moderator: Mark T Serbinski CA CPA
So, let me rephrase your question, in light of the information you neglected to mention, which I took to be from a Cdn worker, not a US employer:
What does a firm need to report when contracting a US citizen living in Canada to do work solely in canada?
Is that your question?
If so, you have no more or less to report than for any other US contractor. If they were not US citizens, and thus did not have an SSN, you would not issue 1099, but since they do have 1099, you should issue 1099.
Tho contractor will then use this income on both his 1040 and his Cdn return, as self-employed income. It would be considered foreign income by IRS in terms of Foreign Earned Income exclusion or foreign tax credit purposes.
What does a firm need to report when contracting a US citizen living in Canada to do work solely in canada?
Is that your question?
If so, you have no more or less to report than for any other US contractor. If they were not US citizens, and thus did not have an SSN, you would not issue 1099, but since they do have 1099, you should issue 1099.
Tho contractor will then use this income on both his 1040 and his Cdn return, as self-employed income. It would be considered foreign income by IRS in terms of Foreign Earned Income exclusion or foreign tax credit purposes.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best