Paying Tax in Canada if you work on TN visa in USA


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spaceman   
Member since: Feb 07
Posts: 108
Location:

Post ID: #PID Posted on: 22-02-08 22:15:20

Dear Friends,

Just wanted to know if a Canadian Citizen should pay taxes in Canada if he is working on TN visa in USA and paying taxes in USA.

Thanks



sudesingh   
Member since: Jul 04
Posts: 2085
Location: Toronto

Post ID: #PID Posted on: 23-02-08 00:23:37

Quote:
Originally posted by spaceman

Dear Friends,

Just wanted to know if a Canadian Citizen should pay taxes in Canada if he is working on TN visa in USA and paying taxes in USA.

Thanks



Yes. You'll get credit for the taxes paid in US, so you'll land up paying the difference (due to different tax rates)


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ash_canada   
Member since: Jan 07
Posts: 121
Location:

Post ID: #PID Posted on: 23-02-08 08:31:06

You need to pay Canadian taxes on your US income only if the CRA considers you a "resident" for tax purposes. You are considered a resident if you have significant ties like maintaining a house, spouse/family in Canada to Canada when you are working abroad.

You may need to fill out a form and CRA can evaluate your residency status.

Check out the CRA website for more information.



cdn_dude   
Member since: Dec 05
Posts: 942
Location:

Post ID: #PID Posted on: 25-02-08 12:27:53

Quote:
Originally posted by spaceman

Dear Friends,

Just wanted to know if a Canadian Citizen should pay taxes in Canada if he is working on TN visa in USA and paying taxes in USA.

Thanks



If you do not have a house or spouse in Canada (and no significant ties to Canada), declare yourself as a NR of Canada by writing a departure date on your tax return (or by calling the CRA). Once you are a NR of Canada, you do not need to file cdn taxes. This will save you money!



AshwaniG   
Member since: Jul 04
Posts: 1484
Location: Convinient

Post ID: #PID Posted on: 25-02-08 13:02:50

Most of the people on TN avoid to declare NR status as they want to enjoy BENEFITS of Canada ..;)


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cdn_dude   
Member since: Dec 05
Posts: 942
Location:

Post ID: #PID Posted on: 25-02-08 13:21:55

Quote:
Originally posted by AshwaniG

Most of the people on TN avoid to declare NR status as they want to enjoy BENEFITS of Canada ..;)



May be because (mostly) either of this is true: 1) they do not know/realize that the money they save with declaring cdn NR status is far more than the cdn benefits they want, OR 2) they file the tax returns in a wrong way either by mistake or on purpose.



brown_bear   
Member since: Nov 06
Posts: 542
Location: Somewhere in dreamland

Post ID: #PID Posted on: 26-02-08 19:55:49

Quote:
Originally posted by AshwaniG

Most of the people on TN avoid to declare NR status as they want to enjoy BENEFITS of Canada ..;)



What are those benefits?





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