When I should use form 8833?

Alwaysdream · Post by **Alwaysdream** » Sat Mar 01, 2008 2:49 pm

I think 8833 is used when you get paid from foriegn country while you are working in USA, this means if I'm canadian and my canadian company sent me to USA where I did my work, my payment will be subjected to Tax Treaty.
But If I'm on TN and work for US company, I can't claim Tax treaty.
Am I right ?
So If I'm considered Resident of Canada, and Non-resident of USA for Tax year 2007 I should:
In USA: File 1040NR + 3903 for moving expenses (if any)
In Canada: Report USA income as world income for Canada

My last question, is there any rule said that per diem is non-taxable for 1 year, and after that year it will be taxable even if you maintain your foreign residenct place as primary resident?

nelsona · Post by **nelsona** » Sat Mar 01, 2008 4:22 pm

since you have moved to US, you are probably no longer resident of Canada and are resident of US

Alwaysdream · Post by **Alwaysdream** » Sat Mar 01, 2008 5:03 pm

for 2007 I elect to be treated to be resident of Canada and Non-resident of USA, do I need to file 8833 if I take my All my USA wages from US employer?

nelsona · Post by **nelsona** » Sun Mar 02, 2008 5:47 am

You can only elect to be a resident of canada if you actually live in canada. Do you ?

If so, filling a 1040NR and answering the questions (which ask to explain your residency and treaty positions) will take the place of anything you could write on 8833.

If you haven't met SPT, you don't have to elect US non-residency, you are non-residenty by definition and can file 1040NR.

Most TNers, though, prefer to file 1040, especially if married