Paying US taxes as a Canadian resident.

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turandot
Posts: 2
Joined: Sat Mar 03, 2007 12:17 am
Location: Canada

Paying US taxes as a Canadian resident.

Post by turandot »

Dear Experts,
I am a Canadian citizen, residing in Canada, and was working in the US for one month in 2006, As such, I would be considered a non US resident, and I do not have dependents.

1. The employer deducted federal, local, state, social security and medicare taxes from my wage. For me, will filling forms 1040NR-EZ and 540NR be enough or will I need to fill other forms?

2. I do have dividend income in Canada and it is claimed on my Canadian Income Tax filing. Do I need to mention it on my US filing?

3. Can I expect Social Security tax I paid to be returned?



Thank you,
Clair
Carson
Posts: 183
Joined: Wed Oct 27, 2004 1:00 pm
Location: Toronto

Post by Carson »

1. I don't myself use EZ forms, but since all you will be reporting is the US W-2 wages, those should do fine.

2. No.

3. No, though the SS and Medicare can be claimed as "tax paid" for foreign tax credit purposes (along with the US Federal and State tax calculated on your US returns) on your Canadian tax return.
turandot
Posts: 2
Joined: Sat Mar 03, 2007 12:17 am
Location: Canada

Post by turandot »

Thank you, Carson for the answer.

One more question, please.
My husband never visited the US in 2006, and he does not have an SSN nor

an ITIN (his SSN or ITIN is required for 540NR, the state tax form). Is

it acceptable for me to fill forms as a single?
Sincerely,
Clair
Carson
Posts: 183
Joined: Wed Oct 27, 2004 1:00 pm
Location: Toronto

Post by Carson »

No.

Show that you are married, but do not claim an exemption for him, just yourself. An exemption for him will likely reduce your US tax, so getting an ITIN might be worth the effort.

BUT, if the lower US tax just results in a lower foreign tax credit on your Canadian return, the savings will be paid to CRA instead. So, no win for you.
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