I was in Canada for a business trip for 50 days in 2022. This was solely a business trip and I was paid no per diem

Forum|Forum|3 years ago
December 19, 2022
3 replies
45 views

However, my company sent me personal income tax for me working in Canada. My expenses were paid by my employers, I didn’t earn any money in Canada so how I am liable to pay personal income tax in Canada?
This is big amount of taxes which company is saying that they will pay on my behalf but when I get my IRS refund I will have to pay my company back.
How this all works?

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Mike9241

Level 15

this forum is for US income taxes. your question should be posted in the Canada tax forum

https://turbotax.community.intuit.ca/community/forums/discussion/03/350

Mike9241

SusanY1

Level 15

It sounds like you worked in Canada long enough to be subject to their rules for taxable income. This is common for work assignments out of the country, especially for multi-national companies.

Your Canadian tax obligation is separate from your U.S. obligation, however, as a U.S. Citizen or tax resident you are required to report and pay taxes to the U.S. for your worldwide income. What this will mean when you file your U.S. tax return is that you'll report both the income earned and the tax paid on that income on your U.S. tax return and you will be able to take a credit for some (or all) of the taxes paid to Canada.

TurboTax can help you get the credit you are entitled to. Please feel free to come back to this forum with any questions about how to handle this in TurboTax once you get started on your return in a few weeks (for the best results, post a new question when that time comes!)

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rjs

Level 15

@1405715 wrote:
I didn’t earn any money in Canada

You certainly did earn money in Canada. The salary that your employer paid you for the time that you were in Canada is money that you earned in Canada.