US citizen/PR working in usa getting the income from another country

[journadian 13]

I'm trying to understand this scenario (which is similar to myself).

 

If a US citizen/PR is working from home (in the USA) for a project coming from Canada, and therefore are receiving payment coming from Canada.  Do they do taxes just for the USA? or both? 

 

 

[Chardon Ne' 71]

You would file US taxes as a person who receives foreign income...

[NovaSprings 89]

My first answer would be that you need to file in both countries...however, it may depend on how you were paid.  Were you paid a salary or a consulting fee?  If you were paid a salary then you would need to file in both countries.

[journadian 13]

Thanks for the replies Chardon Ne' and NovaSprings

 

It makes sense to do the taxes for USA however if the taxes done for just USA would it be like siphoning money out of Canada?  I guess if I receive a tax form from the employer in Canada I would need to do the Canadian taxes.  But in the situation of Consulting, do I need to do the taxes for Canada then?

 

Would it be similar if merchant in the USA selling goods (eg, ebay) to Canada have to do Canadian taxes only because they are receiving payment from Canada?