Important
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For information call now:
(347) 989-4566
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Additional information
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Internal Revenue Service
Austin Service Center
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342
IN
1-800-829-1040
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Canada -
Personal Services Income
Income that residents of Canada receive for personal services as independent
contractors or self-employed individuals is subject of the treaty. Business
profits are exempt from U.S. income tax unless the individual has a permanent
establishment in the United States. If they have a permanent establishment in
the United States, they are taxed on the profit attributable to the permanent
establishment. You may be considered to provide services through a permanent
establishment in the United States even if you do not have a fixed place of
business.
Income that residents of Canada receive for personal services performed as
employees (dependent personal services) in the United States is exempt from U.S.
tax if it is not more than $10,000 for the year. If the income is more than
$10,000 for the year, it is exempt only if:
- The residents are present in the United States for no more than 183 days in
any 12-month period beginning or ending in the tax year, and
- The income is not paid by, or on behalf of, a U.S. resident, and is not borne
by a permanent establishment in the United States.
Public entertainers (such as theater, motion picture, radio, or television
artists, musicians, or athletes) from Canada who derive more than $15,000 in
gross receipts, including reimbursed expenses, from their entertainment
activities in the United States during the calendar year are subject to U.S.
tax. However, this article does not apply to athletes participating in team
sports in leagues with regularly scheduled games in both Canada and the United
States.
Pay received by a resident of Canada for employment regularly done in more than
one country on a ship, aircraft, motor vehicle, or train operated by a Canadian
resident is exempt from U.S. tax.
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