TIN number or Social Seccurity Number
Moderator: Mark T Serbinski CA CPA
TIN number or Social Seccurity Number
I will be in the US working as an independent Contractor for more than 183 days in 2015. As i understand it, i will be considered a resident alien in the US and will need to file tax returns in the US. Should I file for a TIN number or a Social Security Number? And what are the advantages and/or disadvantages of either?
Well, you *might* be considered a US resident. By treaty, even if you exceed the 183 days, you can remain a Cdn resident if the preponderance of your residential, social and financial ties are in canada.
By staying 183 days you are triggering US taxation on your contractor income, which you could avoid by being in US less than 183 days. But this in itself does not make you a US tax resident.
Because you will have US taxation ,you will require either an SSN or, if you cannot get a n SSN. an ITIN.
You only get an ITIN if you get an immigration working status, like TN. Otherwise, you are ineligible, and apply for ITIN when submitting your first non-resident tax return, 1040NR, presumably in spring 2015.
So, what status will you be working in?
By staying 183 days you are triggering US taxation on your contractor income, which you could avoid by being in US less than 183 days. But this in itself does not make you a US tax resident.
Because you will have US taxation ,you will require either an SSN or, if you cannot get a n SSN. an ITIN.
You only get an ITIN if you get an immigration working status, like TN. Otherwise, you are ineligible, and apply for ITIN when submitting your first non-resident tax return, 1040NR, presumably in spring 2015.
So, what status will you be working in?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
I will have TN status.
It is my understanding that I will be issued a 1099 by the company that is contracting me in the US. They are going to ask for a W-9 from me which provides a Social security number or ITN number. I am just wondering which may be better to have. If I have a Social Security number does that mean i have to pay Social Security taxes in the US, while if I have an ITIN number I don't - just the income tax
It is my understanding that I will be issued a 1099 by the company that is contracting me in the US. They are going to ask for a W-9 from me which provides a Social security number or ITN number. I am just wondering which may be better to have. If I have a Social Security number does that mean i have to pay Social Security taxes in the US, while if I have an ITIN number I don't - just the income tax
As I said, there is a difference between tax residency and taxation. Same for Social security (which in your case would be called self-employment tax),. If you remain Cdn resident, you will not have to pay SS or SE, regardless of having an SSN.
An SSN will be issued if you have TN. You should thus get it. There is great advantage to having it over an ITIN.
Is it possible for you to be in US less tnan 183 days, this would make your life so much easier.
An SSN will be issued if you have TN. You should thus get it. There is great advantage to having it over an ITIN.
Is it possible for you to be in US less tnan 183 days, this would make your life so much easier.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing