I am Canadian. I have no visa or green card. I have no US sourced income. I am self-employed in Canada.
In 2012, I was in the US for 2 months.
In 2013, I was in the US for 6 months.
In 2014, I was in the US for 6.5 months.
In 2015, I was in the US for 4 months.
My net income in Canada is $10,000 in each of 2013, 2014, and 2015.
My question is do I have to file a US tax return. Am I exempt through the US Canada tax treaty?
If I have to file, do I file Form 1040 or 1040NR?
If I am not exempt, do I have to pay self-employment tax in the US even though I do not have to pay in Canada because I am in the 0% tax bracket? Should I apply for a certificate of coverage? Would forms 8833 for tax treaty position or 8840 for closer connection help me?
Are there any other issues that I need to be worried about? Do I need to report foreign assets if I have closer connection to Canada?
Can the tax treaty help reduce my tax filings?
Thanks!
Do I have to file US tax returns?
Moderator: Mark T Serbinski CA CPA
You are exempt in most years if you do not meet SPT. Trouble is, you often meet SPT, so must rely on the treaty.
For 2012 you have nothing to file.
For 2013 and 2014 you would have filed 1040NR along with form 8833 , reporting no income but explaining why you should not have to file (ties in Canada).
For 2015 since you meet SPT but were not in US 6 months, you can file form 8840 by itself.
By filing 1040NR or 8840 none of your non-US income is taxable in US, so your other questions are moot.
For 2012 you have nothing to file.
For 2013 and 2014 you would have filed 1040NR along with form 8833 , reporting no income but explaining why you should not have to file (ties in Canada).
For 2015 since you meet SPT but were not in US 6 months, you can file form 8840 by itself.
By filing 1040NR or 8840 none of your non-US income is taxable in US, so your other questions are moot.
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
Thank you for your reply nelsona.
I was under the impression that meeting the SPT test made me a resident alien in the US and that I would have to file form 1040 to report worldwide income. I have also read about having to file a report of foreign assets.
Does filing Form 1040NR and 8840 mean that I do not need a certificate of coverage for social security taxes?
I was under the impression that meeting the SPT test made me a resident alien in the US and that I would have to file form 1040 to report worldwide income. I have also read about having to file a report of foreign assets.
Does filing Form 1040NR and 8840 mean that I do not need a certificate of coverage for social security taxes?
As I said, please red carefully, because youboth met SPT and were in US more than 180 days (in '13 and '14) you file a 1040NR and 8833 to EXPLAIN why, by treaty, you are not a US tax resident.
In 2015, you meet SPT, BUT you do NOT have 183 days, thus you use 8840 to explain that you are Cdn resident.
Since non of your income is from US.....why would you need a certificate of coverage. You are not reporting any US sourced self-employment income.
In 2015, you meet SPT, BUT you do NOT have 183 days, thus you use 8840 to explain that you are Cdn resident.
Since non of your income is from US.....why would you need a certificate of coverage. You are not reporting any US sourced self-employment income.
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