Got TN however working from Canada most of the time

[seansai23]

Hi

Trying to understand how and from where to file taxes.

Got TN and worked from US about 2 months than client allowed me to work from home i.e Canada.

I have 401k from employer, now want to buy some etf and options; USA does not allow to open trading account for non us citizen. I am thinking to open account trading account (not decided in RRSP, TFSA or not in either just trading account)

Now year end is coming so question is my payroll setup in USA and pay taxes there as employer setup that way after getting my I94 and TN.

How to file taxes and where?

[nelsona]

You have made it complicated, but you will report ALL world income in Canada, and report wages earned while physically in US on a 1040NR.

Canada will give you credit for the tax you calculate on your 1040NR, plus sny state taxes, as well as SS and medicare.

Be careful with the 401(k), since Canada will only credit you with 401(K) made during time you work in US.

[nelsona]

Since you live in Canada, you can only have investment/trading account in Canada.

[seansai23]

Thanks, Nelsona.

I did little reasearch on 401k, as it will reduce my RRSP. Thinking to stop it after Dec 31, 2023.

I need to do some more reseacrh 401k and RRSP.

[nelsona]

Look more carefully.

Form RCA268, allows 401(K) contributions to be deductible in Canada ONLY when contributed while working physically in the US.