You may be tempted to forego reporting your foreign income to the CRA. If your employer fails to send you information or report any income on their end, you want to ensure that you protect yourself from any potential liability.
You must always report and pay taxes on all income earned. No matter if your employer does not send you a W-2 or if they do, you still have obligations to fulfill. Yes, you must report any and all income to the CRA. If my US employer did not send me a W-2 form, do I still need to report my foreign income? If this is the case, ensure that you have this information on line 207 of your CRA tax return, as you may be able to deduct these contributions under the Federal Foreign Tax Credit. Sometimes the W-2 form you are provided from your US employer includes information around deductions such as US taxes, benefits, or retirement plans.
You can use this list of annual average exchange rates when converting multiple amounts you've earned from throughout the year. Have you received various amounts of US income throughout the year? No problem. Exchange rates fluctuate and change depending on the day, but using an accredited institution can help you feel secure in the amounts that you report. We suggest using an accredited bank's exchange rate, such as the Bank of Canada. When filling out your T1 return, make sure to document all foreign income on line 104.
Don’t forget! You must report this in Canadian dollars when submitting your T1.įor US tax reporting, if a US company employs you, you will receive a W-2 form at the end of the year that outlines all your earned income in USD.Īs a Canadian, you must take these figures and convert them into CAD from USD to report them to the CRA.
Working remotely from another country canada how to#
How to report US income on your tax returnĪs a Canadian freelancer or business owner in Canada, you are required to report any and all income you earn throughout the year to the Canada Revenue Agency (CRA), regardless of the source, which means that no matter where you earn money: through contracts or full-time employment, you must report it to the CRA on your income taxes. There is one nuance here: if you work remotely, you do not need a work visa to work 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. In other cases, there could be specific services or education specializations that only a Canadian can provide, leading the US firm to seek out the individual for employment. One such reason could be that the US company is looking to take advantage of the change rate, capitalizing on the lower cost of hiring Canadian workers. Indeed, it's a bit unavoidable as we do have the world's longest land border! Many US companies may decide to employ Canadian workers for a myriad of reasons. Traditionally, Canadians and Americans have worked together with no issue. Canadians working for a US Companyįirst things first: can a Canadian legally work for a US company? Yes, they can. If you are an employer looking for information around hiring a contractor from Canada, find that information and more in this article. Never fear! Knit is here to help demystify and equip you with payroll and HR information. Where and how exactly do I pay taxes if I am a Canadian citizen working and living in the US?Īs a Canadian employee working remotely with US companies, all of these questions are important and probably have crossed your mind at some point.Should I be charging Canadian sales tax to my US clients?.When you begin working with a company based in the US, you may find yourself asking questions such as: Are you a Canadian working for a US company? Then you are probably wondering how you manage and navigate your tax obligations.
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