Tax rates for Telecommuting

[rohitnar]

Hi

I plan to live in BC for 6 months to a year on an open work permit. My wife will be on Student permit. During this time I do not have plans for a job in Canada but I will be telecommuting for a US company out of BC. My questions are

1) What tax rates will I be subject to? Example if I was paid an annual salary of $50,000 US per year can some one give a break up of taxes.

2) Any online resources with help on the tax rates specific to my scenario?

3) Since my wife will be studying will I be eligible for any tax exemptions on her study cost?

Thanks

 

[rohitnar]

More information on the above. I plan to open a bank account in Canada, so I will get paid in Canada. Any information on the above will be appreciated.

 

[dbss]

Hi

I plan to live in BC for 6 months to a year on an open work permit. My wife will be on Student permit. During this time I do not have plans for a job in Canada but I will be telecommuting for a US company out of BC. My questions are

1) What tax rates will I be subject to? Example if I was paid an annual salary of $50,000 US per year can some one give a break up of taxes.

2) Any online resources with help on the tax rates specific to my scenario?

3) Since my wife will be studying will I be eligible for any tax exemptions on her study cost?

Thanks

1. you will be taxed federal tax and provincial tax as given in the link below

2.http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

3. Not unless you file taxes as a family which I guess will be the case for you.

 

[rohitnar]

Thanks. What if I got paid in a US bank? Then I assume I would not need to pay taxes in Canada, right?

 

[seton]

Thanks. What if I got paid in a US bank? Then I assume I would not need to pay taxes in Canada, right?

Since you're living in BC, you income is taxed in Canada regardless of where the money is actually held - this doesn't change anything (on the Canadian side).

To your question #3 (wife tax exemptions), your wife will be able to transfer up to $5,000 worth of tax deductions annually on her return from her eligible tuition deductions.

 

[Alurra71]

Thanks. What if I got paid in a US bank? Then I assume I would not need to pay taxes in Canada, right?

From what I understand, and I could be wrong, while you live in Canada you are required to file a tax return, HOWEVER, if you are paying taxes in another country, those taxes are taken into consideration and USUALLY there are not further, or extra taxes required to be paid to your resident country. Now, because Canada taxes at a different rate and such, it is possible that when you file your taxes that there may be something due, but again, they will/should take into account the taxes you already paid on that income in the US.

Please be aware though, that even if you are paid into a Canadian account, you must must MUST file taxes in the US as well using the tax form for out of country income. They do take into account the taxes you paid in Canada as they have a reciprocal sort of agreement. Just be sure to file taxes in both Canada and US to keep it all above board.

 

[diaswrd]

Hello guys!
This post really caught my attention because it's exactly my case for next year.
I'm currently living in Brazil, working from home to an USA company. And next year I'll move to Winnipeg and start a 2-year diploma in a college there.

So, based on the link posted by dbss (thanks!) and having an income of CAD44,000 via USA invoices, should I pay 22% of federal taxes PLUS 12.75% of Manitoba taxes? This payment is made by year or in a monthly basis?

Thank so much you guys!