nelsona post question

sjantzi · Post by **sjantzi** » Wed Feb 20, 2013 11:59 am

In this thread

http://forums.serbinski.com/viewtopic.php?t=6951

nelsona states:

"The Cdn/US person should be allowed to file the same as a US citizen "in the same circumstances" (which covers whether he moves to US or not)."

"What it means is that Cdns, regardless of where they live, can file a full year 1040, whether they must or not."

Am I understanding this correctly that as a Canadian living in Canada commuting to the USA everyday for work on a TN visa I can file a 1040 instead of a 1040NR?

sjantzi · Post by **sjantzi** » Wed Feb 20, 2013 12:04 pm

Also if it matters, I'm a direct hire to the US company and I receive a W2

nelsona · Post by **nelsona** » Wed Feb 20, 2013 1:38 pm

of course.

However, once you file 1040, you must also adhere tp all the other filing requirements like FATCA, FBAR, 8891, 3520, etc. it may simply not be worth it.

besides, if you are married there are other provisions that allow you to file a 1040NR with all the benefits of 1040, but not the other headaches mentionned above.

And, of course, exotic filing in US just to save some US tax, merely sends more of your money to the waiting hands of your province, due to lower foreign tax credit.

1040NR is usually sufficient.

sjantzi · Post by **sjantzi** » Wed Feb 20, 2013 2:03 pm

Nelsona thank you very much for the reply.

I know you can file a 1040NR with all the benefits of the 1040 but I have not been able to find instructions on doing so. I believe its something like filling out a 1040 and transferring the tax amount to the 1040NR but there must be more to it. Can you expand on this please?

nelsona · Post by **nelsona** » Thu Feb 21, 2013 8:14 am

This is only if your are married.

I have dealt with this in pther posts look for xxv or xxv(2) or d=non-discrimination or pro forma

sjantzi · Post by **sjantzi** » Thu Feb 21, 2013 3:22 pm

Thank you very much for the replies. I think I'm getting this. Just to make sure I'm clear this is what I'm going to do:

- Fill out a 1040 using my spouses and my world income up to the point of line 61 (total tax), use this to get my effective tax rate.

- Fill out a 1040NR as normal but use the effective tax rate from the 1040 above

-Write on the top of the 1040 "Pro Forma 1040 for XXV(4) calculation"

-Fill out a 8833 stating country of Canada and Article XXV(3).

Do I enter anything in 8833 line 5?
Line 2, 3 and 4 blank?

Thank you for the help

sjantzi · Post by **sjantzi** » Thu Feb 21, 2013 3:25 pm

Typo, I meant:

-Write on the top of the 1040 "Pro Forma 1040 for XXV(3) calculation"

sjantzi · Post by **sjantzi** » Fri Feb 22, 2013 11:04 am

Anyone?

nelsona · Post by **nelsona** » Fri Feb 22, 2013 12:09 pm

bumping posts is bad form. Go with what you've found.

sjantzi · Post by **sjantzi** » Fri Feb 22, 2013 12:31 pm

Sorry I'm not trying to do something wrong. I did search for a few hours and pieced this together from multiple threads. I havent found anything concrete on how to do this, if i had I would not be asking.

The IRS had made my life a living hell a few years back and I'm afraid to do anything wrong. From my experience given any excuse they treat you like garbage and they are relentless.

nelsona I appreciate your help, I really do and if you dont want to answer thats ok, thank you for the info you gave me.

Can someone else who has done this please let me know if this is the correct way to do this.