How do you think tax residency would break in this scenario?
- Canadian Citizen/pensioner/resident considering working part-time 1099 TN stateside
- own homes Canada + USA and break lower substantial presence threshold due to snowbirding B2.
- scenario intention to stay under 183 day threshold in US and work the TN contract from Canada at least 183 days per year.
does substantial presence in USA (<183 days) + TN 1099 work automatically mean US residency for tax purposes, or can I argue closer connection and hold on to Canadian tax residency to avoid an exit filing and asset deeming?
the thinking is to try it out for a year, then pull the plug, sell the Canada house and do an exit filing once the relationship with the US employer stabilizes.
Tax Residency? - TN with Sub. Presence but <183 days
Moderator: Mark T Serbinski CA CPA
Unless you meet the 183 day in calendar year, you are still allowed to file 1040NR with closer connection, even if you meet SPT.
In your case, even if you exceeded 183 day you could file 1040NR with 8833 treaty position stating that you remain, by treaty, a CDn resident.
In your case, even if you exceeded 183 day you could file 1040NR with 8833 treaty position stating that you remain, by treaty, a CDn resident.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 