US citizen living and working in US for a Canadian company. - KamilTaylan.blog
18 June 2022 8:09

US citizen living and working in US for a Canadian company.

Can I work for a Canadian company and live in the US?

To legally live and work in the US, Canadians must obtain a work visa unless they have dual citizenship with both countries. There is one nuance here: if you work remotely, you do not need a work visa to work in the US.

Can Americans work for Canadian companies remotely?

Yes, you can live in Canada and work remotely for a US company. However, you need to pay taxes. There are three ways to work remotely from Canada; as an independent contractor, foreign employee, or through a PEO. If you choose to be a foreign employee, you need to be familiar with the tax obligations.

Can I work for a Canadian company while living abroad?

Employees interested in working remotely from abroad are encouraged to be mindful of the tax implications. While an employee may remain on the Canadian payroll, their presence in another country could subject them to additional tax obligations.

Do US citizens working in Canada pay taxes to both countries?

Yes! US citizens are required to file US taxes in Canada on worldwide income. It does not matter if you have already paid taxes in Canada. You still must file US expat taxes.

Is it illegal to work remotely in the US?

As a US citizen, you can work for a US company and live abroad so long as you comply with local visa regulations. An American citizen will continue to pay taxes in the US as usual. For US citizens, as long as you are in good standing with your employer, remote work from abroad should be possible.

Do I need to report Canadian income on US taxes?

All American citizens and green card holders are required to report their worldwide income, regardless of whether they live in the US or abroad, so Americans living in Canada are required to file US taxes reporting their Canadian income alongside any income they may have in the US or any other country, too.

How can you avoid double taxation between US and Canada?

The US – Canada Tax Treaty

The solution for US expats to avoid double taxation on their income arising in Canada is to claim US tax credits to the same value as Canadian incometaxes that they’ve already paid.