Hello Experts,
Would like to know if anything in Canada-US treaty that is applicable for my case.
I am a full-year Canadian Resident but US Non-resident. I telecommuted to work for a State University as an employee and earned Wages (more than $10,000). I calculated my 1040 NR and seem to get high Taxes.
Only deduction I have is my state tax withholdings & 2 exemptions (spouse doesn’t work). Can I deduct or exempt anything else?
Thanks!
Tax Treaty applicable for me?
Moderator: Mark T Serbinski CA CPA
Are you able to use up all your US tax on your CDn return? f so then there is no point doing anything more complex than what you have already.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
thanks Nelson, for your quick response. I am just going to calculate my Canadian taxes and i will reply if i was able to use all my US taxes. Meanwhile, from the other posts I see you guys discussing that Treaty will prevent US from taxing Canadian Residents anything more than what a resident will pay. So for comparison sake, i calculated my taxes as US resident (with only US income), my total taxes came as 7.2% of Total Income, but as non-resident it came as 11.8% of Total income, because of huge Standard deduction I guess. So, just curious if I am missing any treaty benefits like you mentioned in other posts “Article XXV(2) 1040NR, prepared by using pro forma 1040�?
The problem with this is that you would need to include your Cdn income to determine your US rate.
As Isaid, unless there is a need to reduce US taxes, there is no need to go thru the effort and expense of a XXV(2) claim.
As Isaid, unless there is a need to reduce US taxes, there is no need to go thru the effort and expense of a XXV(2) claim.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
today i completed my Canadian tax calculations and yes, I was able to deduct 100% of the taxes (US Non-Resident Fed & State total tax) from my Canadian Tax Payable. So, the only question left is, if there is any additional form that i need to file along with my 1040NR such as Form 8833 or something ??