Employment/Source of Income

[canadiangirlz]

Hi guys!

I am a Canadian citizen and am currently working on sponsoring my common-law partner to Canada and I am at the section that asks whether I am working in Canada or out of Canada. My questions is, if I am physically living in Canada at a job that is based in the U.S. (I would be doing remote work), is this considered working in Canada, or working outside of Canada? I only ask because I would have to get documents issued by the CRA if it is considered working in Canada. I do not want to make a mistake like this.

Thank you in advance!

 

[YVR123]

Hi guys!

I am a Canadian citizen and am currently working on sponsoring my common-law partner to Canada and I am at the section that asks whether I am working in Canada or out of Canada. My questions is, if I am physically living in Canada at a job that is based in the U.S. (I would be doing remote work), is this considered working in Canada, or working outside of Canada? I only ask because I would have to get documents issued by the CRA if it is considered working in Canada. I do not want to make a mistake like this.

Thank you in advance!

If you are working in Canada for a US company, you still have to file your tax return and report your income.

I do not understand your question of "documents issued by CRA". Did you live in Canada and work for the US company in 2021? If so, you would have filed your 2021 tax return and have your NOA.

 

[canadiangirlz]

If you are working in Canada for a US company, you still have to file your tax return and report your income.

I do not understand your question of "documents issued by CRA". Did you live in Canada and work for the US company in 2021? If so, you would have filed your 2021 tax return and have your NOA.

Thank you for your reply. So, essentially I would select "working outside of Canada" and submit tax documents that were provided by the IRS and report my income?

And as for the second part, I did not live in Canada and work for the US company - I have no Canadian work history. I was just asking because if I was considered to be working in Canada (since I am physically working in Canada, even though it's a U.S. company), I would need to reach out to the CRA. But, now I know that I should select "working outside of Canada" and I don't need to reach out to them.

 

[YVR123]

Thank you for your reply. So, essentially I would select "working outside of Canada" and submit tax documents that were provided by the IRS and report my income?

And as for the second part, I did not live in Canada and work for the US company - I have no Canadian work history. I was just asking because if I was considered to be working in Canada (since I am physically working in Canada, even though it's a U.S. company), I would need to reach out to the CRA. But, now I know that I should select "working outside of Canada" and I don't need to reach out to them.

I don't understand your reply. If you live in Canada (reside, physically in a house/apartment) or have significant tie to Canada (e.g. family living in Canada), you need to file your tax return for international income. (does not matter if your employer is US based or Canadian based)

I think the answer of the applicantion is correct for now to provide the IRS documents (since that's what you have).
But you need to look into your tax and maybe file any in the future or any that you missed if it's in the past year(s).

 

[canadiangirlz]

I don't understand your reply. If you live in Canada (reside, physically in a house/apartment) or have significant tie to Canada (e.g. family living in Canada), you need to file your tax return for international income. (does not matter if your employer is US based or Canadian based)

I think the answer of the applicantion is correct for now to provide the IRS documents (since that's what you have).
But you need to look into your tax and maybe file any in the future or any that you missed if it's in the past year(s).

Ah, okay I see. So, I would select "Working In Canada," submit IRS documents, and be sure to file taxes with CRA for upcoming years?

 

[ramu_rokey]

Ah, okay I see. So, I would select "Working In Canada," submit IRS documents, and be sure to file taxes with CRA for upcoming years?

If your company has a office in Canada , though working remotely, then it is considered as working in Canada , as the company is filing income tax in Canada and you would receive a T4. But if you are saying you physically being in Canada , but remotely working for a US company and have no tax information to support your employment in Canada , then you need to put as un employed. But as previous member mentioned if you filed your tax returns in Canada , then you can show you are employed (working remotely for a US based company) as all the duck are in row and have the proof of notice of assessment you should be okay . Also on side note give explanation of when attaching the document from IRS.

 

[yoli85]

You don't provide details of long you have been working for the US company, but according to this link below, you still have to file taxes with the CRA every year you have been employed by a foreign employer and have resided in Canada:
Report your foreign income in Canadian dollars

My guess is that if you have been working long enough for a US employer to get IRS documents you also should have filed with the CRA.

But, if you moved back to Canada recently then with only the IRS filing docs and an explanation in a letter that you just moved back, I think it should be good.

 

[YVR123]

If your company has a office in Canada , though working remotely, then it is considered as working in Canada , as the company is filing income tax in Canada and you would receive a T4. But if you are saying you physically being in Canada , but remotely working for a US company and have no tax information to support your employment in Canada , then you need to put as un employed. But as previous member mentioned if you filed your tax returns in Canada , then you can show you are employed (working remotely for a US based company) as all the duck are in row and have the proof of notice of assessment you should be okay . Also on side note give explanation of when attaching the document from IRS.

OP was NOT unemployed. Do not mislead.
With or without the CRA tax return, OP was employed.

 

[canuck78]

Thank you for your reply. So, essentially I would select "working outside of Canada" and submit tax documents that were provided by the IRS and report my income?

And as for the second part, I did not live in Canada and work for the US company - I have no Canadian work history. I was just asking because if I was considered to be working in Canada (since I am physically working in Canada, even though it's a U.S. company), I would need to reach out to the CRA. But, now I know that I should select "working outside of Canada" and I don't need to reach out to them.

How are you being paid? Are you a US citizen? Do you have H1B? Have you started consulting for the company from Canada? You likely also have to prove that you your sponsor will not just land in Canada and then you both will return to your US jobs and homes.

 

[canadiangirlz]

How are you being paid? Are you a US citizen? Do you have H1B? Have you started consulting for the company from Canada? You likely also have to prove that you your sponsor will not just land in Canada and then you both will return to your US jobs and homes.

Yep, I am a dual citizen. I do not have H1B. What would be good proof that we don't plan on landing in Canada and returning? I would be terminating my lease and renting an apartment in Canada. Would this be sufficient?

 

[nedvert]

Yep, I am a dual citizen. I do not have H1B. What would be good proof that we don't plan on landing in Canada and returning? I would be terminating my lease and renting an apartment in Canada. Would this be sufficient?

Maybe, it would be a start. But it really depends on the totality of your circumstances and some RNG perhaps based on the reaction from whomever reviews your application.

Showing the lease in Canada would be solid as well as perhaps some details on what you will do their, some other evidence of a plan to reside, etc. (Setting up utilities, etc. )

 

[ramu_rokey]

OP was NOT unemployed. Do not mislead.
With or without the CRA tax return, OP was employed.

I explained myself i said not employed only when not able to show proof of work in Canada in terms with CRA. As sponsor they want your financial status to support your sponsor, showing working in other country and say employed, how will Canada government know your legitimacy of your Job in other country if you not doing tax filing in Canada for the earning and say you can support the family.

 

[YVR123]

I explained myself i said not employed only when not able to show proof of work in Canada in terms with CRA. As sponsor they want your financial status to support your sponsor, showing working in other country and say employed, how will Canada government know your legitimacy of your Job in other country if you not doing tax filing in Canada for the earning and say you can support the family.

If OP can continue to work remotely, then OP needs to file tax with CRA (and maybe to amend what wasn't done). IRS tax return can be used as some level of proof. There's tax treaty between the 2 countries and OP can write a letter of explanation if he/she plans to continue to use that as source of income.
(legitimacy of a US job can be easily varified)

BTW we have no information about "YOUR case". I was just replying to OP's situation.

 

[canadiangirlz]

If OP can continue to work remotely, then OP needs to file tax with CRA (and maybe to amend what wasn't done). IRS tax return can be used as some level of proof. There's tax treaty between the 2 countries and OP can write a letter of explanation if he/she plans to continue to use that as source of income.
(legitimacy of a US job can be easily varified)

BTW we have no information about "YOUR case". I was just replying to OP's situation.

Thank you all for your help. I will select "working in Canada," submit IRS documentation and also include the reason why I cannot provide tax documents from CRA (because I recently have moved and have not had an opportunity to file with CRA). Does this sound correct?

 

[ramu_rokey]

If OP can continue to work remotely, then OP needs to file tax with CRA (and maybe to amend what wasn't done). IRS tax return can be used as some level of proof. There's tax treaty between the 2 countries and OP can write a letter of explanation if he/she plans to continue to use that as source of income.
(legitimacy of a US job can be easily varified)

BTW we have no information about "YOUR case". I was just replying to OP's situation.

Thanks for your concern, my application is all done and complete i am giving advice so as to avoid application being sent back on any grounds. I am not enforcing any suggestion, Its one discretion to take it or not . Be what ever treaty as you mentioned hope work best for them