US citizen living in the US, working remotely as a contractor for a Canadian company

Forum|Forum|3 years ago
April 8, 2023
1 reply
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I am a US citizen living in the US. I work remotely (from the US) as a contractor for a Canadian company. My income is reported on IRS Form 1099-NEC.

From the discussion in this older (August 2019) thread: US citizen in the US working remotely for Canadian company, it's my understanding that:
• From the perspective of the US, since my work is all done in the US, the IRS considers my income as US-sourced and so US-taxable (via Forms 1040 Schedules SE and C).
• And from the perspective of Canada, since I'm a US resident, and Canada taxes based on residency, my income is not taxable by Canada.

Is that (still) correct?

Best answer by MaryK4

Yes. As a U.S. citizen you are required to report worldwide income, but since you worked in the U.S., it is U.S. based income. For that reason, the Canadian company is not required to withhold Canadian taxes and you are not required to file a Canadian tax return. See Persons Employed by a Foreign Person for more information.

MaryK4Answer

Level 15

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IndependentContractor

Level 2

As a US resident working remotely as an independent contractor for a Canadian company, with income reported on 1099 NEC for US Tax purposes as 100% of my income is earned while working in USA. However, if I attend a two day meeting in Canada will I be subject to reporting Canadian income for only being in Canada 2 days out of the entire year? Do I have to report and file a Canadian tax return for the apportioned 2 days of income?