CDN on TN Tax and 401(k) Questions
Moderator: Mark T Serbinski CA CPA
CDN on TN Tax and 401(k) Questions
Hi and thank you in advance for you help. I am a Canadian citizen living in Canada and crossing the border daily to work for in the US for a US company. I currently hold a TN visa and they take out the following deductions: - Federal Income tax - Social Security tax - Medicare tax - NY State Income tax - NY SUI/SDI tax - 401K (I have no personal 401k deductions) - Invest My questions are as follows: 1. What tax forms should my employer give me at the end of the year? 2. Which tax forms should I fill out to file my US taxes? 3. When/if can I can I claim/transfer my 401K to Canadian RRSP with minimal penalties? 4. How would I find out my total contributions to my 401K other than my pay stub? I would like to verify the amount 5. I contribute annualy to my Canadian RRSP, should I contribute to 401K too? Thank you again.
1. You will get a W-2 like every other employee at your firm.
2. Likely a 1040NR, although you can choose to fill a 1040, but will make a much more complex return, and likely not save you any overall taxes.
3. Your 401(K) is best left in US until you need it. I have a question about your statement that you have no 'personal' 410(k) deductions. Does this mean you are not contributing, but your company is?.
4. Ask any of your co-workers, they will no exactly how much they have in their accounts, they surely know how to track it. Again, you mention your 401(K) contributions, but you said you don't have any personal 401(k) deductions. Are you sure you have a 401(k) and not just a straight pension plan?,
5. 401(k) contributions are NOT deductible in Canada, so this would be a waste, unless your firm gives you matching amounts. Even then its not that great.
Please clarify what you and/or the company are contributing to your retirement plan.
2. Likely a 1040NR, although you can choose to fill a 1040, but will make a much more complex return, and likely not save you any overall taxes.
3. Your 401(K) is best left in US until you need it. I have a question about your statement that you have no 'personal' 410(k) deductions. Does this mean you are not contributing, but your company is?.
4. Ask any of your co-workers, they will no exactly how much they have in their accounts, they surely know how to track it. Again, you mention your 401(K) contributions, but you said you don't have any personal 401(k) deductions. Are you sure you have a 401(k) and not just a straight pension plan?,
5. 401(k) contributions are NOT deductible in Canada, so this would be a waste, unless your firm gives you matching amounts. Even then its not that great.
Please clarify what you and/or the company are contributing to your retirement plan.
As an employee working in US, he still has to file US and State tax returns, AS WELL AS Cdn tax return (There will be no tax credit on the US tax return, since the income is US-sourced).
The RRSP is of course the way to go for retirement income.
What we are discussing here however is the employer and worker contributions to a 401(k), which are certainly not as beneficial to a US worker living in Canada as one living in US.
The RRSP is of course the way to go for retirement income.
What we are discussing here however is the employer and worker contributions to a 401(k), which are certainly not as beneficial to a US worker living in Canada as one living in US.