I guess this is where the confusion comes in.
When I work in Canada I turn in an invoice to the US firm that sends me a check.
I work for an hourly fee.
When I work in the US I do exactly the same, other than I am at one of the client's facilities for the work and staying in a hotel. I turn in invoice and expense report to the US firm and they pay the invoice and reimburse the travel expenses.
The US firm bills the client.
So the interpretation by the accountants that did my 2010 and 2013 returns appears to be US wages paid by a US firm for work performed on US soil for when I was in the US.
And then they didn't apply the treaty?
And accountant that did my 2011/2012 returns was just out to lunch?
I have not claimed any Foreign tax credit that I didn't pay.
I even got a refund from the IRS on a reassessment in 2012, and shortly later I got a letter from the CRA indicating that i owed them that money plus interest since I had claimed it on my T1 as Foreign Tax paid.
From that I believed the IRS and CRA talk to each other on cross border taxes.
Changed from 1040 to 1040NR - CRA Foreign Tax Credit
Moderator: Mark T Serbinski CA CPA
Where you perform the work makes ALL the difference in the worrld! Its called SOURCE. FTC is always based on SOURCE.
And, yes, the 2 authorities communicate as to taxes PAID, but not on how those taxes were determined. Without a W-2, a 1099, or a T4, they are left to "guess" where you performed the work, or simply take your word for it.
What you are wanting to do now is in essence tell them: "You know when I said I was working in US all this time (by the fact I claimed all this income was US-sourced)? I lied, I was in canada most of the time. Sorry that you trusted me. Don't do that anymore"
And, just to reiterate, its not that 1040 was filed instead of 1040NR that caused this. US citizens in canada always , and Cdns residents working in US, file 1040 sometimes do. It is that you claimed that the income was earned in US when it wasn't. the proof of that is that even when you file 1040NR, it's not being done correctly.
As you said in your original thread, any presumed tax savings on your US etunr would have gladly been sopped up by CRA.
And, yes, the 2 authorities communicate as to taxes PAID, but not on how those taxes were determined. Without a W-2, a 1099, or a T4, they are left to "guess" where you performed the work, or simply take your word for it.
What you are wanting to do now is in essence tell them: "You know when I said I was working in US all this time (by the fact I claimed all this income was US-sourced)? I lied, I was in canada most of the time. Sorry that you trusted me. Don't do that anymore"
And, just to reiterate, its not that 1040 was filed instead of 1040NR that caused this. US citizens in canada always , and Cdns residents working in US, file 1040 sometimes do. It is that you claimed that the income was earned in US when it wasn't. the proof of that is that even when you file 1040NR, it's not being done correctly.
As you said in your original thread, any presumed tax savings on your US etunr would have gladly been sopped up by CRA.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Your help is much appreciated.
That leaves me with 2014 US return. I get it - I shouldn't be filing in the US anyways.
However when they did my 2013 return I had paid substantial installments in 2013 (due to the high taxes paid in 2012), and since they only claimed what I made while in the US I got a substantial refund.
The accountant applied several thousand of my US refund towards my 2014 return to cover the calculated installments for expected 2014 taxes on line 72 of the 1040NR. So helpful.
I only worked a week in the US in 2014 and earned less than the personal exemption that week, so even if I filed a 1040NR and claimed the income I wouldn't owe anything, and even under following the 2013 accountant logic I shouldn't have to file since earnings are under the personal exemption. However, to get back the several thousand I assume I will have to?
That leaves me with 2014 US return. I get it - I shouldn't be filing in the US anyways.
However when they did my 2013 return I had paid substantial installments in 2013 (due to the high taxes paid in 2012), and since they only claimed what I made while in the US I got a substantial refund.
The accountant applied several thousand of my US refund towards my 2014 return to cover the calculated installments for expected 2014 taxes on line 72 of the 1040NR. So helpful.
I only worked a week in the US in 2014 and earned less than the personal exemption that week, so even if I filed a 1040NR and claimed the income I wouldn't owe anything, and even under following the 2013 accountant logic I shouldn't have to file since earnings are under the personal exemption. However, to get back the several thousand I assume I will have to?
In cross-border maters, NEVER forego filing something simply on the basis tah tyou are below the filing threshold. You always want your income (and all important SOURCE) on record.
So even if you were not owing anything and not getting anything back, I would file the 1040NR, report muy US-source income, and be done with it.
So even if you were not owing anything and not getting anything back, I would file the 1040NR, report muy US-source income, and be done with it.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
As to why they would make me pay up front - they said I would be paying installment(s) if I didn't, and this would save the hassle.
I will take your advice in the 2nd comment to heart.
Not the advice I got from the current accountant - they said don't file for 2014 - apparently they forgot they already had me pay.
Know any good tax accountants?
I will take your advice in the 2nd comment to heart.
Not the advice I got from the current accountant - they said don't file for 2014 - apparently they forgot they already had me pay.
Know any good tax accountants?