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BeanLou
New Member

Canadian living in US wanting to work remote for Canadian Company

Im a Canadian and my spouse is dual. We both live in US for family reasons; my spouse  has a job that maintains both our lifestyle comfortably, I am unemployed (stay at home). 
My previous Canadian employer is hiring and some of my ex co-workers are encouraging me to apply. I still have my own bank account in Canada and my spouse and I are looking to retire back there someday. 
I know I will pay taxes with Canada Revenue,  how will this affect (paying) taxes with US as well?

Thanks in advance! 

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2 Replies
pk
Level 15
Level 15

Canadian living in US wanting to work remote for Canadian Company

@BeanLou , since you did not elaborate , I am going to assume that (a) you both have SSN, ; (b) both have work permit; (c) you both have lived in the USA long enough to meet the substantial Presence Test.

In such a case , your working for a Candian entity and performing the work in the USA, would mean that for US purposes, your income is sourced to USA..

You file form 1040 , jointly with your spouse  ( for max tax benefit, usually ). TurboTax supports the preparation and filing of such returns.

You will also be subject to US Social Security & medicare taxes ---- Canada and US have  Totalization agreement and thus you will pay  such taxes to only one taxing authority with a certificate  from that authority showing that you are covered.

Note that because you will be working for a Candain entity,  if you choose to pay Social Security & Medicare to the USA, you will have to pay the full 15.3% as a self-employed -- you file Schedule-C  and Schedule-SE.

 

Does this make sense ?  Is there more I can do for you ?

 

pk

BeanLou
New Member

Canadian living in US wanting to work remote for Canadian Company

Yes I do have SIN and SSN and all legal docs for both countries. 

The pay would be in Canadian $ I would likely pay into CPP (Canadian Pension Plan),  and my spouse already covers us through their insurance, that would be covered as well.

Thank you for the reply, truly appreciate it!

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