US Citizen Freelancing for company in Canada

Hi,

I am a US citizen. I have been offered the opportunity to freelance for a company in Canada. I've freelanced before, so I understand how those taxes work. But my two questions are, (1) Are there any penalties or additional taxes I'll have to pay on the US side for gaining foreign income? (2) Do I need to file Canadian taxes since the income I'm gaining is from that country?

The company will be paying me in USD over paypal.

640

Moderator

Jan 29, 2022 1:00:41 PM

In Canada, your tax obligations are based on residency, so if you are a non-resident who doesn’t reside in Canada, you likely don’t need to file a return. However, it may be best to confirm this with the Canada Revenue Agency (CRA). If you are in Canada or the United States, you can call the CRA at 1-800-959-8281. If you are elsewhere, you can call 613-940-8495. This page has more ways to contact the CRA: Contact the Canada Revenue Agency

For assistance with U.S. taxes and U.S. versions of TurboTax, please visit the website for TurboTax USA.

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US Citizen Freelancing for company in Canada