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I am a US citizen currently living in Canada and going through the Permanent Residency process. I was recently approved for a work permit. While I've been here, to keep busy and to maintain an income, I have been working as an independent contractor for a company in the US. I have been paying US federal taxes every quarter, but I am curious if now that I have a work permit, do I also need to pay taxes to Canada? Or does that happen when I receive my PR status? Thank you.
If you are living and working in Canada then you have to file and pay taxes in Canada. When you file taxes in Canada, you need to file for your worldwide income - not just the income you make in Canada. There's an agreement in place between Canada and the US to ensure you're not double taxed (e.g. if you file your Canadian taxes first, you'll declare any taxes you've paid in your US taxes to avoid double taxation). Note that even if you stop working as an independent contractor for the company in the US, you will still have to file US taxes annually. This is a legal requirement of all US citizens, regardless of where they are living and working.
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