I am a Canadian citizen with H1B and working in US for past 4 years. I have been filing taxes to US and have filed departure tax (no longer resident of Canada) in the first year of my move to US.My wife is on a dependent visa H4.
She is being offered lump sum work from Canada by a company for which she used to do work earlier when in Canada. They plan to give her projects on a as-required basis.
1) Can she accept the work being in US as a dependent?
2) If so, where does she file taxes? Canada or US? (already declared non-resident for tax purposes). I beleive it should be in Canada.
3) She is shown as a dependent in my US Return. Do I have to include the income she generates from Canada? or not report it at all?
Canadian citizen on H4 working as freelancer
Moderator: Mark T Serbinski CA CPA
1) is an immigration question, that only a US immig lawyer could answer; the Cdn firm would have to have absolutely no business in US, for them to use her sevices.
2) She would report and pay tax only in US. The Cdn fimr may have to withhold some tax, but this would all be recouped at thax time by filing a non-resident tax return, and excluding the income by treaty. She should not pay any CPP or EI. She will pay self-employment tax in US.
3). Of course. You are filing a joint return, which requires reporting WORLD income for both of you, regardless of where it is earned or how another country might tax it.
2) She would report and pay tax only in US. The Cdn fimr may have to withhold some tax, but this would all be recouped at thax time by filing a non-resident tax return, and excluding the income by treaty. She should not pay any CPP or EI. She will pay self-employment tax in US.
3). Of course. You are filing a joint return, which requires reporting WORLD income for both of you, regardless of where it is earned or how another country might tax it.
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
Thanks!
The company in Canada does not have any business in US.
For her to pay taxes in US, doesnt she require a SSN? How does she pay taxes? Currently she has an ITIN number which I used while filing the return?
As for the Canadian non resident return, she would file the return to show the income and then claim it/exlude under treaty?
The company in Canada does not have any business in US.
For her to pay taxes in US, doesnt she require a SSN? How does she pay taxes? Currently she has an ITIN number which I used while filing the return?
As for the Canadian non resident return, she would file the return to show the income and then claim it/exlude under treaty?
Her Cdn NR return would be filed as you stated. CRA usually requires a flat withholding on payments to NRs. She would get this back on that return.
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