Canadian Living in US under TN Visa---Help with tax needed

nelsona · Post by **nelsona** » Wed Mar 25, 2009 2:32 pm

8833 is for ANY treaty-based position you are taking, not merely non-filing or non-payment of tax.

Pub 519, which outlines IRS regs applies to all alien tax-filers, strictly speaking does NOT permit you (a non-US citizen) from filing a full year joint tax return.

The US-Canada treaty does, and thus you are claiming a treaty benefit -- Form 8833.

jgoveas · Post by **jgoveas** » Wed Mar 25, 2009 2:42 pm

Sorry, you mean it does NOT permit you TO file a full year joint tax return?

nelsona · Post by **nelsona** » Wed Mar 25, 2009 2:49 pm

Did you understand what I said?

jgoveas · Post by **jgoveas** » Wed Mar 25, 2009 2:50 pm

No, sorry. If you meant it does not permit us to file a full year joint return then that makes sense. I just wanted to clarify.

jgoveas · Post by **jgoveas** » Wed Mar 25, 2009 2:55 pm

Actually, I'm completely confused. I thought you don't have to be US Citizens to file jointly but simply residents. And if you elect to be treated as residents for your first year of residents you can file jointly?

nelsona · Post by **nelsona** » Wed Mar 25, 2009 3:28 pm

Peters stated he arrived at the end of the yaer and does not meet SPT, thus he can't file full-year, by IRS regs, since he is not alien resident at year-end (he can choose to be treated as a dual-status to file a part-year 1040, but this does not make hime a resident at year-end). He can by treaty atricle xxv.

I'm addressing his situation.

If you, jgoveas, arrived early enough in 2008 to satisfy SPT, or if you got your GC in 2008, you can file 1040 MFJ without treaty.

jgoveas · Post by **jgoveas** » Wed Mar 25, 2009 3:30 pm

Sweet! Yes, I meet the 183 days test. As usual I was confusing myself. Thanks a million Nelsona!

peters · Post by **peters** » Thu Mar 26, 2009 7:51 am

I think that since you passed SPT you just file 1040 without 8833.

I did not pass the SPT so I would file 1040NR + 8833 referring to clause XXV.

nelsona · Post by **nelsona** » Thu Mar 26, 2009 8:00 am

No, if you want to file 1040NR, just file 1040NR. What does XXV have to do wit that?

You would file 8833 if you wished to file 1040 MFJ full year.

peters · Post by **peters** » Thu Mar 26, 2009 8:14 am

My mistake. I will file 1040NR, but calculate taxes as MFJ and attach 1040 with hypothetical calculation noting that I used clause XXV for the calculation.

peters · Post by **peters** » Thu Mar 26, 2009 9:06 pm

[quote="nelsona"]Peters stated he arrived at the end of the year and does not meet SPT, thus he can't file full-year, by IRS regs, since he is not alien resident at year-end (he can choose to be treated as a dual-status to file a part-year 1040, but this does not make hime a resident at year-end). He can by treaty atricle xxv.
[/quote]

Nelsona, would it be a big deal (with IRS) if I just go ahead and file 1040 MFJ for the whole year declaring my world income instead of this dual status filing? It would simplify things, moreover my income in Canada was mostly scholarship which is not taxable in either country.

nelsona · Post by **nelsona** » Sat Mar 28, 2009 2:29 am

I would file 1040 MFJ.

Your scholarship income is not taxable as long as you meet certainn criteria. Make sure you meet these. If the scholarship is from canada, amke sure you meet the Cdn criteria too.

peters · Post by **peters** » Mon Mar 30, 2009 9:39 pm

If I had a self-employed income in Canada, before I came to US. Do I simply include this on line 7 or I have to report it as business income on line 12?

nelsona · Post by **nelsona** » Tue Mar 31, 2009 5:28 am

Self employed income, schedule SE. You hould not have to pay SE tax on t however, just income tax. And you may be able to eclude it using 2555 if that is the route you choose.

peters · Post by **peters** » Wed Apr 01, 2009 4:30 am

I wanted to use 1040 + 2555. I had 10000 income from SE in canada and 15000 from scholarship. I figured out that I fill out the form 2555, and it turned out that i can exclude the whole amount I made in canada. Now I am puzzled how do I enter these two incomes into 1040. Do I need to file as self employed person?