Residency or non resident?

TAXCPA4U · Post by **TAXCPA4U** » Thu Jan 27, 2011 9:01 pm

I have a client who is in the us on a j-1 status visa as a research scholar and is an exchange student for up to two years in calif from a canadian university He receives money from a us charity as an independent contractor. He receives all money in his canadian bank accounts. He rents out his home in canada but is temporarily here until the course work is complete. Is he a us resident and should he file a us tax return? he currently files and pays taxes in canada

nelsona · Post by **nelsona** » Fri Jan 28, 2011 2:51 pm

He is a Cdn resident, due to the fact that J-1 status does not counr towards SPT, and thus, even by treaty, he does not meet the initial requirement of tax residency in US to break Cdn tax residency.

He amy have to file a US tax retunr (1040NR) for any US-sourced income he recieves, but will report all world income on his Cdn return.

As you should know, where the money is deposited has absolutely no bearing on taxation or residency.

TAXCPA4U · Post by **TAXCPA4U** » Fri Jan 28, 2011 5:53 pm

Hi Nelsona. Thanks for your help and your reply. Can you provide sites for me please so that I can have the primary authority for your position. Also can you define SPT. Thanks

nelsona · Post by **nelsona** » Sat Jan 29, 2011 7:10 am

IRS.gov.

If you don't know what SPT is, you shouldn't be taking on US clients.