TransWikia.com

I am a Canadian, living in Canada, doing an internship remotely for a U.S. company. Do I pay U.S. taxes?

Personal Finance & Money Asked on October 31, 2021

Main question in the title.

I already received a "bonus" (was supposed to be a relocation stipend before the internship got moved to virtual). For that check, the following taxes were removed: Federal and NY withholding tax, Social Security, and Medicare tax. All in all, about 40% of the check went to taxes.

At the end of the month, I should receive a large check with all my wages for the month of July, so I want to make sure that the tax situation is worked out.

If I do have to pay U.S. tax, do I also have to pay Canadian taxes on top of that?

Any advice would be welcomed, as I never had to deal with taxes before.

One Answer

This PDF will provide some insight into international taxation policies, but like the comments said, consult a tax professional.

Per Wikipedia, Canada taxes local income, and foreign income of residents.

Also from Wikipedia:

Countries that tax income generally use one of two systems: territorial or residence-based. In the territorial system, only local income – income from a source inside the country – is taxed. In the residence-based system, residents of the country are taxed on their worldwide (local and foreign) income, while nonresidents are taxed only on their local income. In addition, a small number of countries also tax the worldwide income of their nonresident citizens in some cases.

Answered by rocky on October 31, 2021

Add your own answers!

Ask a Question

Get help from others!

© 2024 TransWikia.com. All rights reserved. Sites we Love: PCI Database, UKBizDB, Menu Kuliner, Sharing RPP