1040NR Non-Resident Deductions

colinc · Post by **colinc** » Sun Jan 26, 2014 5:42 am

I'm filing 1040NR for 2013 and noticed that on Schedule A there's no general sales tax deductions. As a Canadian in the US is there any way to claim it (and any other deductions) through tax treaty? or is it similar to the standard deduction and I'd have to file a 1040 instead?

nelsona · Post by **nelsona** » Sun Jan 26, 2014 10:47 am

You always have the option of filing a 1040. If you are married, you have the option (by treaty) of calculating your taxrate on a joint 1040, and then applying it to a 1040NR.

But there is no provision to change the 1040NR.

And for a Cdn, this should not matter, since lowering US tax merely adds to Cdn tax.

You live in Canada, correct?

colinc · Post by **colinc** » Sun Jan 26, 2014 3:36 pm

I'd like the standard deduction but wouldn't I have to file 3520's for TFSAs I had this year? I'm single so not sure if 1040 yields that great of a savings.

I moved to Washington state in Nov 2013 with TN Status and am no longer a resident of Canada but also don't meet the substantial presence test. Since I don't have to report income after I moved lowering US taxes would be what I'm seeking.

nelsona · Post by **nelsona** » Mon Jan 27, 2014 11:06 am

It is unlikely, after including all your Cdn income for the year and applying 2555/1116, that 1040 would be much better if at all. Plus the reporting requirements.

I hope you took the opportunity in Nov/Dec to collapse your TFSA. Otherwise you will still have to file 3520 (and pay tax) on them on your 2014 return.