HELP: Tax Inquiries

[maryelize]

Hello,

I am an American citizen living in Canada as a permanent resident. I currently am paid through Paypal for providing online services through an American company. I'm confused about whether I am supposed to report the income I receive via PayPal for taxes with the IRS or with my Canadian tax report. I'm confused! I earn about $40-$80 a month through this online job, so not a lot. Thank you! 

[DPCreations]

What tax ID do you have registered wit PayPal, U. S. or Canadian?

[maryelize]

Hello, I can't find my paypal I.D. on my account anywhere...

[DPCreations]

I guess that means PayPal wont report it.

The service company which provides the compensantion would be the company to report the income.  What tax ID do they have?

[maryelize]

I don't see a tax ID on my account but my SIN is requested, so that means I have a Canadian account. The company I work for states that they do not give any tax advice to employees. If it's an American company paying me and I'm an American citizen I would think that I'd be reporting this extra income to the IRS but I've seen other threads which indicate that this would only be the case if I was living in America, which I do not.

[lancelotme]

if you are an American citizen,your income is taxable no matter where you live.

Do you work in Canada?

You will have to report your Canadian income on your 1094 as well,the tax you paid to Canada is deductible, 

[lancelotme]

Paypal sends out 1099 to US members who does 200 transactions AND $20,000 a year.

Not sure what it does in Canada,may be you can find some information on its website or consult with your tax accountant.

But if 40-80 US dollars is your only income ,it comes to under $1000/year,I wont worry about it. 

[DPCreations]

Your income/gross receipts is taxable whether reported by the employer or not.  It is reportable/taxable according to the regulations of your country of residence and your official address.  You need to get that information from tax advisors from both countries.  Your income must be included on you annual tax reports to governments.