Freelancing for Canadian clients while on TN Status

F

F C

New Member
Hello,

I haven't been able to find an answer to this question on the forums...

I'm a graphic designer in the US on TN status, working for an American company. I've been asked by a Canadian client to work on a project. Is accepting this work while living in the US a violation of my TN status? I already have rental income to report to the IRS from Canada, as well as annual royalties from a business sale - both of which should be considered "passive" income.

As a Canadian nonimmigrant, is it really the US' worry that I make income from a Canadian company and spend that money within the US?

Thank you,
Frank
 
Also, if my wife is on TD status, is she able to freelance for Canadian clients?

Cheers,
Frank
 
Working in US is a violation of your status (either TN. TD, H1-B, H4, etc) unless (a) the overseas client you work for has no business in US, and (b) neither they nor you are "benefitting" from your presence in US (ie. you are not using resources, locations, etc, that would not be available to you if you were not in the US.)
This would be self-employment income, subject to US income tax and self-employment tax, but not any Cdn tax or CPP.
 
@nelsona is there somewhere I can get more information about the conditions you mention?

I am a Canadian moving to the US on a TN visa, and my wife will accompany me on a TD visa. She currently works for a provincial health authority within Canada, and they asked her if she could finish up some work remotely over the next year, after we move. The BC health authority has no business in the US, and our presence in the US will definitely not benefit them. I have asked elsewhere, but seem to get the standard response of "any work in the US is disallowed".
 
That work would seem OK. Remember that since it is Govt work, she would continue to pay CDn tax on the income, and would be exempt from US tax by treaty.
 
Thanks @nelsona, though I was hoping you would have more specific references. The only thing I can find in the Code of Federal Regulations Title 8, Section 214.6, is:

(4) The spouse and unmarried minor children of a citizen of Canada or Mexico admitted in TN nonimmigrant status shall not accept employment in the United States unless otherwise authorized under the Act.

It uses the expression "accept employment in the United States", which is not defined directly in this section or title.

The best I can find is the term "employment" from Title 26 Section 31.3121(b)-3 - Employment; services performed after 1954:

(b) Services performed within the United States. Services performed after 1954 within the United States by an employee for his employer, unless specifically excepted by section 3121(b), constitute employment. With respect to services performed within the United States, the place where the contract of service is entered into is immaterial. The citizenship or residence of the employee or of the employer also is immaterial except to the extent provided in any specific exception from employment. Thus, the employee and the employer may be citizens and residents of a foreign country and the contract of service may be entered into in a foreign country, and yet, if the employee under such contract performs services within the United States, there may be to that extent employment.

This would seem to suggest that working for a Canadian organization is not allowed.
 
I've given you my opinion, based on years of following such cases. You can always seek a legal opinion, or two, or three. You will get different answers.
 
I found this :
"Dependents of TN Nonimmigrants
Any accompanying or “following to join” spouse and children under the age of 21 may be eligible for TD non-immigrant status. Spouses and children are:

Not permitted to work while in the United States, but they are permitted to study."

Also found this :
TN visa workers must file and obtain a new TN employment authorization in order to work for a different employer, or for an additional employer. 8 CFR § 214.6 (h) (2). Engaging in unauthorized employment constitutes a failure to maintain status. 8 CFR § 214.1 (e).

You can check this out for your wife. Coz as far as I've read, I think it's considered illegal for her to work here. And for you, I think you need to obtain another TN (but not sure if this applies since your client is in Canada). Better check with an attorney since there would be immigration and tax issues. But I'm sure there's a way out since you're not doing anything illegal.
 
You must log in or register to reply here.
Top