working with my canadian company while waiting for green card

[jeannyd03 0]

Hi everyone

So we got approved for our fiance visa in april! =my current employer is considering allowing me to continue working for our company (based in canada) part time remotely from california when i move there. i would be taken off their pay roll, and have to invoice the company.. therefore i'm not being taxed or anything... my question is.. can i do this in the US while waiting for my adjustment of status to permanent resident? i know i'm not supposed to be working in the US, but i'd be working for a canadian company getting paid canadian dollars?

any input would be great..thx!

[Cyteen 0]

I would have a consult with an accountant and a lawyer on this one. While thousands and thousands of people do contract work for foreign companies all over the world,it might be ill advised to do it "under the table" while you are under scrutiny of the K-1 process. Governments have increasingly started to apply regulations and the law with presumptive reverse onus. In other words, they will make a ruling that you are guilty until you prove yourself innocent and it doesn't look like there are a lot of people with the stomach or the money to actually challenge these actions in courts. The lawyer and the accountant will tell you that everything hinges on "intent" and it is up to you to be able to show and document your intent. I'd say that at a minimum, doing work that way, you should have your contractee withhold. income tax [both federal and provincial and CPP. In that way, you are not avoiding taxation, which is the big part of the no-no. You will then have to file both Canadian and US tax returns, but nobody will be able to say that you are trying to hide income from taxation. Oh - and don't forget - in some jurisdictions, you will also have state and city taxes to consider. If you don't set things up right, you could end up in a ball of red tape the size of the Moon.

[eebee 0]

Hi, when I asked the immigration lawyer we used for our K1 application, I was told that as long as I was working for a Canadian company and being paid to my Canadian bank account, there was no problem with this. You do need to look into reporting the income in the US, though, as I believe there are still tax implications in both countries. The opportunity for me to work never did work out, though, so I'm afraid I can't give you any information based on actual experience. Maybe someone else on the board can?

Good luck!

[Samuel5028 2]

Better to consult with a lawyer. As they will guide you about the tax returns.