tax claiming questions

canadiantraveler · Post by **canadiantraveler** » Fri Mar 25, 2016 2:19 am

Hi I am a travel nurse trying to figure out how to fill out forms and if it will affect my tax free money.
1. My permanent address is in Canada and I am working in the USA. However for certain forms such as W4 I have been told I have to put an American address on it and that it will not accept a canadian address. If I put my cousins address in WA where my assignment is for a mailing address and on my W4 will this flag me or make me pay taxes when I file at the end of the year?

2. Also for places I am unable to use a Canadian address such as my bank is it okay to have my address in WA without causing tax flags at the end of the year?

3. What does the IRS look for when determining your permanent home?

nelsona · Post by **nelsona** » Fri Mar 25, 2016 10:15 am

Realize that if you are a tax resident of Canada, you will need to report all income there, regardless if some of it is considered tax-free in US.

Which portion are you considering as tax-free?

As to your question about printed address, this should not pose an issue. What IRS uses to determine residency is primarily days spent in US. If you are over 183 days in US you are usually considered resident of US, and residednt of the locale in which your home was established first, and not given up. Yours seems to be in WA for US tax purposes, but it might be Canada.

nelsona · Post by **nelsona** » Fri Mar 25, 2016 10:18 am

The best indication of your residence is your driver's license.

canadiantraveler · Post by **canadiantraveler** » Fri Mar 25, 2016 11:19 am

The tax free money that I get is meals/incidentals and housing. I am primarily in the US but go home to Canada approximately every 3-6 months. Not 183 days worth however just the same as most travelers such as a week or two at a time. Previously to doing travel nursing I worked for a year and a half in Texas at a "permanent" job; I put it in quotations because I am on a TN visa and nothing can be permanent. So explaining this brings me to a question about my license. Since I no longer live in Texas nor have an address there I will need to change my license and car registration. I was going to change this to Washington as I will be on assignment here for 6 months and am able to use my cousins address to keep it registered to. So if I am understanding correctly I should have all income taxed if my drivers license is in Washington? Another question you had mentioned that if your permanent home is in Canada you need to claim all income. Does this mean I would need to pay dual taxes on my US income?

nelsona · Post by **nelsona** » Fri Mar 25, 2016 11:42 am

Be careful. From what I understand, if you actually up and move move to your new job(s) you are not traveling. For traveling expenses you MUST keep one place and not give it up. Simply put, if you move FROM texas (or Canada. or wherever) to Washington to work, you are not travelling for work. You MOVED for work. Only if you keep your other home, can you claim that you are travelling.

That place could indeed be Canada (although it doesn't sound like it), but if it is, then it doesn't really matter if your expenses are tax-free in US, they won't be tax-free in Canada. If you have not given up tax residency in canad, then you still need to report world income to Canada, regardless of where the money is earned.

Travelling nurses are often lured by their agents into thinking that all this money is tax-free (it saves them money if payroll tax). But there are strict rules, that the agent may not be required to enforce, that trip up the nurses, and they get stuck with the tax bill. Just a warning.

nelsona · Post by **nelsona** » Fri Mar 25, 2016 11:45 am

http://blog.bluepipes.com/travel-nursin ... eductions/

is a good discussion.

canadiantraveler · Post by **canadiantraveler** » Fri Mar 25, 2016 11:48 am

When I had crossed the boarder though and asked the boarder patrol they indicated to me that I am not considered a tax resident of Canada since I am primary in the Us and working here. When I am at a location it is temporary and my permanent home is in Canada. So from my understanding to them I was a tax resident of the US. See where I am confused?

nelsona · Post by **nelsona** » Fri Mar 25, 2016 3:08 pm

The border has no authority to decide if you are or are not a tax resident of Canada.
Only you and the tax depertment can decide that

If you no longer live in Canada, then you need to file your departure tax return (probably form 2013 or 2014).

And you cannot be a non-resident of Canada and also consider your permanent home as being in Canada. That doesn't make sense.

canadiantraveler · Post by **canadiantraveler** » Fri Mar 25, 2016 3:22 pm

hmm okay.. I also have a house I own in Canada that I currently rent out. Last year I filed taxes in the US on my US income and in canada my rental property income. I believe they also put my US income on there as an FYI but did not get taxed due to the treaty between Canada and the US. It is all so confusing. I am going to read more on that website you posted to read some more.

nelsona · Post by **nelsona** » Fri Mar 25, 2016 3:34 pm

Yeah, your not allowed to file in either country that way.

canadiantraveler · Post by **canadiantraveler** » Sat Mar 26, 2016 10:55 pm

Ohh shoot. How are you supposed to file if you have a rental property in Canada and also have a permanent address and work in the US?