H1B and Federal Tax Exempt ?
 

Dear Friends,

Is Canadian Citizen working in U.S on H1B exempt from Federal Tax?


Regards

Armas

Re: H1B and Federal Tax Exempt ?
 

armas wrote:

    > Dear Friends,
    >
    > Is Canadian Citizen working in U.S on H1B exempt from
    > Federal Tax?
    >
    >
    > Regards
    >
    > Armas

No ... He must pay ALL US taxes. Only people eligible to work in the US
on a visa that requires that they maintain their residence abroad *may*
be eligible for US tax relief. The majority of visas that permit work
in the US do not permit such relief.

Re: H1B and Federal Tax Exempt ?
 

Delete

Re: H1B and Federal Tax Exempt ?
 

grasmick.com

check out the tax forum. There are tax treaties and certain provisions for canadians working in the us signed years ago. Many Canadians (almost 99% of them) are not aware of them and rarely if ever, exploit them.

In fact, IRS rarely themselves ever encounter those canadian provisions on tax returns. Therefore, you can pretty much write off every expense during your "temporary" stay if you can figure out the use of those provisions to their upmost advantage and will rarely get challenged.

Of course, it's an honor system that you'll then use your refund to pay Canadian taxes and retirement benefits. :)

-= nav =-

Re: H1B and Federal Tax Exempt ?
 

On Fri, 21 May 2004 12:38:01 +0000, armas
<member896@british_expats.com> wrote:

    >Dear Friends,
    >Is Canadian Citizen working in U.S on H1B exempt from
    >Federal Tax?
    >Regards
    >Armas

If you pay your Canadian taxes your foreign tax credit will likely
zero out your US federal income tax (income taxes are higher in
Canada). You will have to file, however.