I am in US on a TN Visa for 1 year term. My husband remains in Canada and we maintain a home there. My employer is designating a portion of my hourly wage as "per diem" since I am working away from home (basically maintaining a second residence while I am here). This will reduce my US taxes fairly substantially from what they have shown me. I am told this is ok as long as it only lasts for the 1-year. If they extend my term that will end.
Questions:
1. While it reduces my US taxes, i will file in Canada as well. Does Canada honour that as non-taxable income as well?
2. Since the per diem is a daily allowance they are giving me an hourly pay rate + the daily maximum per diem if I work more than 4 hours in a day. However, if I work overtime that is paid only at the low hourly rate as I am considered exempt from overtime given the position I'm holding. Is it better to have them just pay me a higher hourly rate and then claim the per diem on my own when i file my taxes?
Per Diem Allowance for work in US
Moderator: Mark T Serbinski CA CPA
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