Search found 63 matches

by nirvana_1959
Sun Feb 14, 2021 11:03 am
Forum: Canada / United States Tax & Accounting
Topic: 1040 XXV(1) with 8833
Replies: 22
Views: 6887

Re: 1040 XXV(1) with 8833

@Travel-ER-NURSE: Feel free :-). 1040NR (non-resident): Pay tax on US source income only (I think this is pretty much universal) 1040 (resident): Pay tax on all the (worldwide) income (I think this is also universal) Note: US treats citizens as "residents" for tax purposes immaterial of wh...
by nirvana_1959
Tue Feb 09, 2021 5:48 pm
Forum: Canada / United States Tax & Accounting
Topic: 1040 XXV(1) with 8833
Replies: 22
Views: 6887

Re: 1040 XXV(1) with 8833

Good point! I have plenty of room in RRSP. I have to contribute (roughly) $4000 USD equivalent to save $2000 USD taxes to USA. I expect to pay at the most 20% tax when I withdraw from RRSP which still gives me a saving of 30% yielding $1200 USD gain (under this scenario). So, IMO is worth it. Thanks...
by nirvana_1959
Tue Feb 09, 2021 3:31 pm
Forum: Canada / United States Tax & Accounting
Topic: 1040 XXV(1) with 8833
Replies: 22
Views: 6887

Re: 1040 XXV(1) with 8833

nelsona wrote: > When you apply the treaty, you do not use the taxrate on 1040NR, you use > the one determined on 1040 MFJ, and apply it to the US INCOME. That is the > whole point of the XXV(3). Hi Nelson, Yes, the tax rates are same. However, the difference is due to "standard deduction"...
by nirvana_1959
Tue Feb 09, 2021 1:38 pm
Forum: Canada / United States Tax & Accounting
Topic: Remote work on TN due to Pandemic. Can I continue filing using 1040NR using Article 25 Provision
Replies: 5
Views: 2075

Re: Remote work on TN due to Pandemic. Can I continue filing using 1040NR using Article 25 Provision

Hi Joseph. You will always be invoking XXV for your tax calculation. There is another article (I can't remember off the top of my head) that you invoke to claim Canadian residency. Since you don't meet SPT you don't have to do it this time.
by nirvana_1959
Tue Feb 09, 2021 1:26 pm
Forum: Canada / United States Tax & Accounting
Topic: Form W-9
Replies: 3
Views: 1412

Re: Form W-9

When you established Vanguard accounts in USA you must have given them your social security number for 1099. So, moving to Canada has no impact as you are a US citizen. W-9 submission is for the new accounts you re going to setup in Canada (basically telling them that you're a US person; this is use...
by nirvana_1959
Tue Feb 09, 2021 12:26 pm
Forum: Canada / United States Tax & Accounting
Topic: Form W-9
Replies: 3
Views: 1412

Re: Form W-9

Submit W-9 to your financial institutions outside US (i.e., in Canada). You will also need to file FBAR with US Treasury. Deadline is April 15th I think.

If you moved in 2021 you probably have to report in 2022 only.
by nirvana_1959
Tue Feb 09, 2021 12:08 pm
Forum: Canada / United States Tax & Accounting
Topic: 1040 XXV(1) with 8833
Replies: 22
Views: 6887

Re: 1040 XXV(1) with 8833

nelsona wrote: > If your wife has no income, then your 1040 and your 1040 proforma would be > identical, no? > > You would still have all the benefits of 1040, child tax credit, etc. Hi Nelson, Yes, 1040 proforma and 1040 are identical. However, the 1040NR tax is higher (please see below). =========...
by nirvana_1959
Fri Feb 05, 2021 7:33 pm
Forum: Canada / United States Tax & Accounting
Topic: 1040 XXV(1) with 8833
Replies: 22
Views: 6887

Re: 1040 XXV(1) with 8833

Hi nelsona,

My wife has no income. So, standard deduction using "real" 1040 (using XXV(1)) saves me 2K over 1040NR/1040 proforma (XXV(3))..
by nirvana_1959
Fri Feb 05, 2021 6:39 am
Forum: Canada / United States Tax & Accounting
Topic: 1040 XXV(1) with 8833
Replies: 22
Views: 6887

Re: 1040 XXV(1) with 8833

@nelsona: Good morning! Could you please have a quick look ? Thanks!
by nirvana_1959
Thu Feb 04, 2021 7:06 pm
Forum: Canada / United States Tax & Accounting
Topic: Canadian on TN Visa, pandemic, remote work
Replies: 13
Views: 4278

Re: Canadian on TN Visa, pandemic, remote work

b8res wrote: > Thank you for the clarification Nelsona and Nirvana. > > From what I just learned, only the canadian workers got told to go back > immediately, though the border remains closed for non essential travel, > while the American workers can transition to on site work according to > pandemi...
by nirvana_1959
Thu Feb 04, 2021 6:57 pm
Forum: Canada / United States Tax & Accounting
Topic: Canadian on TN Visa, pandemic, remote work
Replies: 13
Views: 4278

Re: Canadian on TN Visa, pandemic, remote work

nelsona wrote: > You do not need a TN to work in Canada, even for this US firm. However, it > could be raising issues for the company, but CRA has taken the position > that those US firms with employees "stuck" in canada due to COVID > are not going to be considered as having Cdn ties. Thi...
by nirvana_1959
Thu Feb 04, 2021 6:06 pm
Forum: Canada / United States Tax & Accounting
Topic: Dual citizen working remotely for US company in Canada
Replies: 1
Views: 985

Re: Dual citizen working remotely for US company in Canada

On the options you will have to talk a tax accountant. Much depends upon how the instrument is defined. For the rest if you're returning to Canada for good you can look into something called totalization. You can use the time spent in US to get credit in Canada. Check this out: https://www.ssa.gov/i...
by nirvana_1959
Thu Feb 04, 2021 6:00 pm
Forum: Canada / United States Tax & Accounting
Topic: 1040 XXV(1) with 8833
Replies: 22
Views: 6887

Re: 1040 XXV(1) with 8833

After digging deeper I realized 8833 is optional 301.6114-1(c) subsection (1)(iv). So answer to 5 is "No", However, I am going to submit it any way to make my treaty based filing explicit.

For the rest any assistance will be much appreciated.
by nirvana_1959
Thu Feb 04, 2021 5:55 pm
Forum: Canada / United States Tax & Accounting
Topic: Dual Citizen Residing and Working in USA
Replies: 2
Views: 1141

Re: Dual Citizen Residing and Working in USA

As a US person (i.e, US tax resident ) you have to report world wide income. Of course the treaty opens up lot of exceptions. Read IRS pub 597. I see this paragraph (see below) in 597 pertaining to your question: Pensions, Annuities, Social Security, and Alimony Under Article XVIII, pensions and ann...