Canadian working online for US company, how do taxes work?

I am an independent contractor for a US company, working out of my home in canada (all work is online). I am paid by direct deposit, and am wondering how taxes work. Am i taxed on the money i earn?

As a cdn independent contractor without a fixed base or permanent establishment per the Canada-US tax treaty, you should not be subject to US income taxes. However, you have to report the US income into your Cdn tax return, and make instalment tax payments for your earnings during the year.

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