Hi,
Currently telecommute from USA and would like to continue when settled in Canada. However, my status will change from an employee to a 1099 consultant beginning in 2010.
Can you experts direct me to links where I can research the tax implications
from working at home. I need to know what type of income/payroll tax impacts are there from a Canadian perspective. Probably need advice from an appropriate Canadian Tax Attorney who specializes in such things.
Does anyone know if Revenue Canada would be helpful in this regard?
Also, if anyone knows a reputable Canadian Tax Attorney I could contact, I would appreciate it.
Will settle in Montreal by May 2010.
Thank you in advance.
Have you tried contacting the Canada Revenue Agency? I wonder if they can help you. They are usually pretty helpful.
I know a couple who moved here from Montana, she works for the University and works from home. Her paycheque is deposited to her account and they file their Canadian taxes like normal and you also file US taxes (you do that anyway if you love outside the US). The 2 countries have some sort of tax treaty.
Best bet is to check out the IRS and CRA sites
U.S. Citizens and Resident Aliens Abroad
Since you'll be living in Canada, I'm pretty sure they don't care where you're earning the money from & you'd just file & pay like you regularly would
Etoile42 Wrote:Have you tried contacting the Canada Revenue Agency? I wonder if they can help you. They are usually pretty helpful.
Hi,
Have found their website, but haven't dug into it yet.
Will see what is there before asking relevant questions.
Thanks for the tip!
DerbyGirl Wrote:I know a couple who moved here from Montana, she works for the University and works from home. Her paycheque is deposited to her account and they file their Canadian taxes like normal and you also file US taxes (you do that anyway if you love outside the US). The 2 countries have some sort of tax treaty.
Best bet is to check out the IRS and CRA sites
U.S. Citizens and Resident Aliens Abroad
Since you'll be living in Canada, I'm pretty sure they don't care where you're earning the money from & you'd just file & pay like you regularly would
Thanks for this link.
Do you know whether or not for Canada, if one has to file quarterly similar to USA? (In the big picture, one has to file for both countries). I need to find specifics for 1099 types.
Does Canada Revenue have anything similar to 1099 types?
Such as what type of taxes must I set aside from gross pay?
USA: Federal, FICA (full percentage), etc.
Canada: What are the Canadian equivalents?
Thanks again DerbyGirl!
Hopefully, after your Medicals are completed, may you have a favorable outcome.
I honestly don't know if you can file quarterly, I'd assume so
We have a corporation, and our corporate taxes are paid yearly, my guy takes his "management fees" and just pays his taxes yearly.
You'd have basically the same here - Fed, Prov, CPP (Canada Pension Plan), EI (unemployment) - those are the ones I can think of off the top of my head
fsrfs6572 Wrote:Thanks for this link.
Do you know whether or not for Canada, if one has to file quarterly similar to USA? (In the big picture, one has to file for both countries). I need to find specifics for 1099 types.
Does Canada Revenue have anything similar to 1099 types?
Such as what type of taxes must I set aside from gross pay?
USA: Federal, FICA (full percentage), etc.
Canada: What are the Canadian equivalents?
Thanks again DerbyGirl!
Hopefully, after your Medicals are completed, may you have a favorable outcome.
DerbyGirl Wrote:I honestly don't know if you can file quarterly, I'd assume so
We have a corporation, and our corporate taxes are paid yearly, my guy takes his "management fees" and just pays his taxes yearly.
You'd have basically the same here - Fed, Prov, CPP (Canada Pension Plan), EI (unemployment) - those are the ones I can think of off the top of my head
Been digging through CRA site and found some gems to digest:
Forms RC4110: Employee or Self Employed,
RC4070: Canadian Small Business, and
T4002: Business and Professional Income Guide
From what is provided, one who is self employed is considered to have a business by the CRA. In essence, I would be a sole proprietor. It seems I would be responsible for paying all associated taxes including any taxes imposed from Quebec(MRQ). I will use these forms as a foundation to find some answers and then determine if its financially and administratively feasible to
work from home in Canada for a US company. Intuitively, it's a no go. Now, I just need to confirm this with facts.
