Hello again claudie,
If you are working for a contractor here in the US who will be sending the payments on your behalf to Canada, then the contractor is obligated to withhold 30% tax from those payments to cover your federal tax
obligations. The contractor you are working for may or may not be aware of these requirements.
If the contractor does withhold the required tax, then when you do eventually file your US return next year, you will be given credit for the taxes already withheld from these payments. If the contractor does not withhold any tax, then when you file your US return next year, you will end up owing the full amount of any tax that might be due.
I know it probably seems like a complicated issue for you at this point, but the botXXXXX XXXXXne really is that you will only end up paying tax to one country on the income you earned, because of the taxation
agreement that the US and Canada have in place. It will just be a matter of filing a tax return with both countries, and it is more of a paperwork issue than anything.
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