A Canadian resident reports their world-wide income on their Canadian tax return. If they immigrated during the year, you note the date of immigration (ie. date they moved to Canada and became a permanent resident) and report their world-wide income from that date forward. If working from home on a contract basis, it is considered to be Canadian business income. As a US Citizen, they will also be reporting their world-wide income on their US tax return. You will have foreign tax credits to record on one or the other tax return, depending upon the source of the income.
