1040NR Exemptions

sjantzi · Post by **sjantzi** » Sun Mar 02, 2014 7:31 pm

My income on the 1040 is higher than the 1040NR since it includes my wifes canadian income and the 1040NR does not.

My TAXABLE income is higher on the 1040NR cause of fewer deductions

nelsona · Post by **nelsona** » Sun Mar 02, 2014 7:43 pm

Yes, but now the taxrate must be so much more favourable on 1040 than on 1040NR.

Are you using the correct 1040NR tax table and the correct 1040 tax tables?

There is something about your story that doesn't sound right. You do get deductions on 1040NR.

I think you are using the terms MORE tax and less tax not quite right.

The goal of this exercise is for you to lower your 1040NR taxrate to the same as a married couple. Once that is accomplished, that should be sufficient to make you slightly taxable in Canada

sjantzi · Post by **sjantzi** » Sun Mar 02, 2014 8:02 pm

1040:
Income (same as AGI): 113893
Taxable income: 76469
Tax: 9176 (12%)

1040NR:
Income (same as AGI): 105334
Taxable income: 78316
Tax using 12% rate from pro-forma: 9397.92

This is the correct way I assume.

nelsona · Post by **nelsona** » Sun Mar 02, 2014 8:32 pm

Exactly.

And what would have been your 1040NR tax without the treaty?

sjantzi · Post by **sjantzi** » Sun Mar 02, 2014 8:37 pm

About $15,664.

Thank you very much for making this clearer. Your time is appreciated!

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