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October 16th, 2008, 09:54 AM #1
income reporting to Canada
- Join Date
- February 7th, 2006
I am looking into signing up with an affiliate network called Maxbounty which, to my understaning, is based out of Canada. Since they don't ask for a SS# I assume (correct me if i'm wrong) I would report my income to the US myself using a 1040form with a scheduleC.
My main question is this: Do I have to report my income to Canada also, and where do I find information on how to do this?
January 15th, 2009, 08:55 PM #2
- Join Date
- January 13th, 2009
I am not a lawyer but generally you are only supposed to pay taxes to the country you live in. (unless you have a registered business in another country)
January 16th, 2009, 12:13 PM #3Originally Posted by nobugs--
February 10th, 2009, 12:15 PM #4
- Join Date
- February 10th, 2009
The US has a tax treaty with Canada. You must be aware of what this means.
If you earn money in Canada, you may be liable for taxes in Canada. Determining matters such as whether or not your business is actually required to pay Candian taxes gets a bit technical. For instance, are you a sole proprietor, corporation, LLC? Do you have a presence in Canada or agents (affiliates) working there. When it comes to eCommerce, these matters may not be so clear. Perhaps you're really a US agent for a Canadian company if you're just an network affiliate. Determining who's who in the eCommerce world is a challenge even for my international tax experts.
However, you always report all income to the IRS. We are the only nation in the world that taxes its citizens on worldwide income--whether earned inside the US or not. Ahhh, its great to be in the land of the "free."
Now, the IRS in its generosity (lol) allows certain foreign income exclusions provided you meet certain residency requirements, or if the exclusion is defined IRS code. Here's the IRS link with more info for you.
Hope this helps.
BTW, if anyone else has better insight into what an network affiliate means in terms of tax liability in foreign countries, I'd like to hear it. I've investigated incorporating offshore ecommerce companies, but not affiliate marketing relationships.
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