If a U.S. resident earns less than $10,000 in Canadian employment income, the employment income will not be taxed in Canada even if the income is paid by a Canadian business that deducts the payments.

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Quizplus · Accepted Answer

This is because the Canada-US tax treaty provides an exemption for individuals who are residents of one country but employed in the other country and earn less than a certain amount of income. For US residents working in Canada, the exemption threshold for 2021 is CAD $10,000. Therefore, if a US resident earns less than $10,000 in Canadian employment income, the income will not be taxed in Canada.

If a US Resident Earns Less Than $10,000 in Canadian Employment Income