Working in US for Canadian Company-How to File Tax

[thisisme 0]

My wife's situation is that she's on her K1 since the beginning of the year and in the process of getting her AOS. When she came to the US, she was fortunate to keep her job at a Canadian based company. She's been working from home as a consultant(pay as lump sum). My question is, where should she remit the tax to? I've read that once you're no longer in Canada, you're considered as non-resident. Therefore, you're no longer need to remit tax to Canada. However, the company she works for is in Canada. What is the correct way to do this?

[Nich-Nick 3,354]

Try reading this information provided by the IRS to get the information. https://www.irs.gov/pub/irs-pdf/p597.pdf

[templeton 120]

She is technically a US business. As such, it makes no difference where the company that hires her is located. She's not their employee - she's self-employed. She would claim her income as such on her US taxes.

If she hasn't already, she needs to submit NR73 to officially let CRA determine that she's no longer a Canadian resident for tax purposes: http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

Assuming they agree and confirm, she doesn't need to file Canadian taxes anymore.

Edited June 22, 2016 by templeton

[Lemonslice 4,841]

She'll want to submit the NR 73 to the CRA to determine her tax status in Canada. http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

For example, I'm a non resident with taxable income in Canada, non taxable in the USA or my state - depends on many factors. You might want to consult with a tax professional (not a generic tax preparation office... ) the first year to figure it out.