Help on W-4 for TN starting mid-March

atlanta2012 · Post by **atlanta2012** » Wed Mar 07, 2012 7:53 pm

I've secured a consulting job for a 12-18 month period in Georgia. My husband is staying in Canada in our home and we will travel back and forth throughout my contract to see each other.

My employer has given me a W-4 and G-4 to fill out for tax withholding. Here are my questions:
1. Given that I am maintaining a home and spouse in Canada, even though I meet the substantial presence test -- do my residential ties and "closer connection" to Canada allow me to present myself as a non-resident alien for tax purposes? Or the fact that I pass the substantial presence and will be employed by and maintaining a (2nd) residence in the US automatically make me a resident alien for taxation?

2. As an NRA or RA, I understand that as a Canadian I can claim similar deductions to those of a US citizen. I'll be maintaining a 2nd home in Atlanta (rented apartment) and flying back-and-forth to visit home. Would those be deductions that I can actually claim in order to make my W-4 score higher and thus reduce the tax withholding amount?

Help?

nelsona · Post by **nelsona** » Wed Mar 07, 2012 11:25 pm

1. I wouldn't waste any time worrying about W-4. Fill as single, and get tax back later. There is no way of saying how your taxes will breakout this year.

2.Again, any tax you ave in US will be taken in canada, so simplify your 1040NR.

atlanta2012 · Post by **atlanta2012** » Thu Mar 08, 2012 1:17 pm

Thank you.

So i just fill out my W-4 and G-4 as standard and worry about it at tax time I guess?

With the majority of the year (well over 183 days) in the US, I was hoping I could still claim the "closer connection to canada" (IRS Form 8840) given that my husband and home are still here? Are you saying I don't need to worry about that?

Will I then file as a dual status resident.Do both a US and Canadian tax filing and claim my US taxes paid on my Canadian Tax submission as foreign tax credits?

Do I need to advise the US (or Canada) that I will be will claim foreign tax credits in Canada or be filing in both places?

Am pretty confused on all this and want to do all possible to avoid paying dual taxes due to some oversight in paperwork before I start working.

Please advise.

nelsona · Post by **nelsona** » Thu Mar 08, 2012 2:00 pm

Unlike Canada, filing a non-resident return in US is usually HIGHER tax, so you will file a normal return.

Nothing to worry about until next spring. Focus on all the other things you need to do...

atlanta2012 · Post by **atlanta2012** » Thu Mar 08, 2012 2:42 pm

Alrighty then..

There are ALOT of other things to worry about, so good to know this is not one of them yet...

Just one other query then..

A friend in the US told me that I should keep all records of my travel back home (when i visit my lonely husband), as I should be able to claim those travel expenses. Does that sound right??

nelsona · Post by **nelsona** » Thu Mar 08, 2012 3:31 pm

No. Not as a W-4 employee.

nelsona · Post by **nelsona** » Thu Mar 08, 2012 3:31 pm

W-2 employee