am I required to file US tax return?

sheri · Post by **sheri** » Thu Jun 10, 2010 9:55 am

I work on a TN visa in the US for a Canadian company which I own and is incorporated in Canada. I get paid in Canadian funds and file Canadian income tax. I travel back and forth weekly. My home and my family are in Canada.

I have two US bank accounts which I use when in the US. Currently I do not own any property in the US.

Do I have to file a US tax return?

thanks,
Sheri

nelsona · Post by **nelsona** » Thu Jun 10, 2010 10:08 am

New rules enacted in the canada/US treaty now make you taxable in US (federally) if you spend more than 183 days in any particular 365-day period. This is regardless of the visa status you work under.

The state in which you are working may require tax regardless of this 183-day threshhold.

nelsona · Post by **nelsona** » Thu Jun 10, 2010 10:09 am

asny US tax you would owe and pay would be creditable on your Cdn return.

sheri · Post by **sheri** » Thu Jun 10, 2010 10:20 am

my tax home is in Canada. will i not qualify for an exemption?

nelsona · Post by **nelsona** » Thu Jun 10, 2010 11:04 am

Your tax home being in canada merely allows you to be treated as a Cdn tax resident and US non-resident. It does not preclude the US from taxing US-sourced income.

The treaty now considers time spent in US in determining whether business income should be taxed by US.

If you were living in US, then ALL income you made would become taxable in US. With your home in Canada, only your US-sourced business income is taxable in US.

The exemption you may be referring to has been done away with, with the most recent treaty.