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Old 11-29-2004, 04:12 PM
Bryan Kellar
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Default Re: US Canada Tax - H1B living in Canada

"swheat" <nicolelee001[at]yahoo.com> wrote:

- quote -

> This is pretty complicated:

Well, maybe a little bit complicated:

- quote -

> I was living in the US and working for a US company paid in
> US$.


And you were filing a Form 1040, presuming you were here for
a while. The currency you were paid in has little to do
with this.

- quote -

> I am now working remotely for the same US company in Canada,
> still being paid US$ working for the US entity, but now I
> live in Canada.


If you are gone from the US "permanently" (or, at least, not
returning in a short period of time) then there will be no
further need to file in the US. For the last year here, you
might need to file a final 1040, or a "Dual Status" return,
depending upon the timing.

- quote -

> I am not a US citizen, I am on a non-immigrant visa H1B. I
> am a permanent resident in Canada.


Since you are a Canadian PR, AND since you are physically
there and working, then you will be taxed in Canada on your
worldwide income from the time that you actually moved there
and became an actual resident.

The fact that you are working for a US company in Canada,
even if they are paying you in US dollars (remember, that's
not an issue) does not necessarily mean you are liable for
US tax. A Canadian PR is basically a Canadian for tax
purposes.

IF you are still holding your H1B visa, and IF you plan on
going back to work in the US on that visa, then agruably you
might be considered to have not left, but just temporarily
out of the country, and US tax MIGHT apply. Of course, if
that is the case, there is a Foreign Tax Credit available to
mitigate the effects of double taxation.

- quote -

> As I understand it, I should be paying US taxes (even local
> CA taxes) and due to the US Canada tax treaty, be paying
> Canada as well?


If you have left the US, and do not plan to return to be a
resident or a worker, then you should have no further tax
liability in the US. You are now Canadian, working for a
Canadian company, for tax purposes.

One thing to keep in mind: This is general information.
Residence rules (in both countries) are a sticky mess and it
would be best to make these decisions with a full set of
facts at hand: Dates you left, pland for returning to the
US, intent of those involved, etc.

- quote -

> What about my taxes next year? I won't be a resident of the
> US but still earning USD?


As I see this, you will have a Canadian return and not a US
return at all.

Good luck!

Bryan

--
------------------------ Bryan Kellar, EA
Oregon Tax Help, Inc. -- Portland, Oregon
www.oregontaxhelp.com
www.canadatax.org

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  #-1  
Old 11-26-2004, 02:49 PM
swheat
Guest
 
Posts: n/a
Default US Canada Tax - H1B living in Canada

This is pretty complicated:

I was living in the US and working for a US company paid in
US$.

I am now working remotely for the same US company in Canada,
still being paid US$ working for the US entity, but now I
live in Canada.

I am not a US citizen, I am on a non-immigrant visa H1B. I
am a permanent resident in Canada.

As I understand it, I should be paying US taxes (even local
CA taxes) and due to the US Canada tax treaty, be paying
Canada as well?

What about my taxes next year? I won't be a resident of the
US but still earning USD?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->
 

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