Hi Experts,

I am a citizen and current (since Jan 2007) resident of Canada. I have been transferred here by my Danish based company and current employment via L1 visa is out of our subsidiary in Atlanta GA.

Must I have US social security and medicare deducted from my Paychecks which are issues in US dollars and wired to my canadian bank account? If so, can I and how do I claim these payments back?

I travel in the US frequently but less than 100 days/year.

Thanks!
Scott

Scott:

As an L-1 visa holder in the U.S. for less than 100 days, you should be totally exempt from U.S. FICA or income taxes.

As for Canadian taxes, you need to get advice from a Canada tax expert.

Scott:

As an L-1 visa holder in the U.S. for less than 100 days, you should be totally exempt from U.S. FICA or income taxes.

As for Canadian taxes, you need to get advice from a Canada tax expert.


Thank YOU!
Wow - this was not the reply I had anticipated as I have been told that I would be required to pay US federal Income tax and file a tax return and then I could claim fullly the US taxes when filing my Canadian return.

Do I then NOT need to file a US tax return?

Can you embellish slightly so that I can refer to something with my employer or point me to a document? I assume it has to do with my status as 'non-resident' in the US.
Appreciate your work on this site!

Scott:

Based on the information provided, you are in the U.S. for less than 183 days and have NO permament base in the U.S.

On that basis, I believe that you are exempt from taxes for 2006.

However, if you continue to be paid from the Atlanta-based subsidiary, you probably WILL be liable for U.S. taxes for 2007 and beyond.