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psingh

Full Member
Jul 9, 2007
31
0
I recently got my PR approved and plan to move with my family by feb 2009. Myself and my wife are working on H1B visa in US. The company she is working with has offered her to work remotely from Canada. But I am not sure how are the taxes going to work. Should she be on the US company payroll or take salary as wire transfer to her account without paying any US taxes. I am the principle applicant on the PR. Please advise
 
If you get paid by a US company you have to pay taxes in US. If you live in Canada and have income from US you will have to file income tax in both US and Canada. The only option to avoid taxes in the US is if your US company has an office in Canada and you get paid thru the Canadian (legal) company - however, then you will loose your H1B as it is linked to the US company.
 
I believe US and Canada have a tax treaty so they will not double tax you.
 
You still have to file taxes in both countries and claim tax credit in Canada or US depending on where you live/work.