Hello,
I have been living in the U.S since August 2015. From August 2015-February 2016 I was on a J-1 Visa, from my understanding these days are exempt from the substantial presence test (because of J1 status) and therefore do not count towards my substantial presence test. I filed an 8843 with with my 2015 return so these are excluded days. I have been working on a TN visa since March 2016, these days are now counting for my substantial presence.
1. Will I become a resident for tax purposes in August 2016 (183 days this year)?
2. My US bank is requesting a W9 or W8BEN, which one should I submit since my tax resident status will change during this year? W8-BEN for now and then a W9 in August?
3. On the W8-BEN, should I complete Part 2 requesting tax treaty benefits?
4. Will I be able to file my 2016 taxes as a US resident alien and not pay any Canadian taxes?
Thanks for all the help, I know this is a lot of questions in one post.
:?:
W8-BEN or W9 - Substantial Presence - Tax Residency
Moderator: Mark T Serbinski CA CPA
When you pass the SPT, your "residency starting date" becomes the first day you were in US.
You will not be availing yourself of any treaty benefits, so you should file a W-9. That is all.
Your departure date from Canada will be the day you became TN (assuming you have no spouse living in Canada), and will file a DEPARTURE return for 2016, with March departure date.
In US you will file full year 1040, as is your right.
You will not be availing yourself of any treaty benefits, so you should file a W-9. That is all.
Your departure date from Canada will be the day you became TN (assuming you have no spouse living in Canada), and will file a DEPARTURE return for 2016, with March departure date.
In US you will file full year 1040, as is your right.
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
Will my "residency starting date" be the first day I was in the US or the first day I was not an exempt individual? In my case March 2016, as opposed to January 2016.
The W-9 form states that I must be a "US person" to sign the form, is it OK to sign it under the pretext that I will be a US person in that year?
The W-9 form states that I must be a "US person" to sign the form, is it OK to sign it under the pretext that I will be a US person in that year?
You ARE a US person already. File W-9.
Your residency starting date is by default the first day that you were in US, but whether you choose it to be Jan 1 or March doesn't matter as to how you will file in US, (which does not depend on residency starting date), since you will file full year, since (a) this is the better way to file for tax rate, and (b) all your income is from US anyway, so all has to be reported. Cdns are ALWAYS allowed to file a full year 1040 without regard to SPT, exclusions, etc -- by treaty.
You do NOT want to file dual-status. thus ignore anything about non-resident alien that you read.
Your residency starting date is by default the first day that you were in US, but whether you choose it to be Jan 1 or March doesn't matter as to how you will file in US, (which does not depend on residency starting date), since you will file full year, since (a) this is the better way to file for tax rate, and (b) all your income is from US anyway, so all has to be reported. Cdns are ALWAYS allowed to file a full year 1040 without regard to SPT, exclusions, etc -- by treaty.
You do NOT want to file dual-status. thus ignore anything about non-resident alien that you read.
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
How am I already a U.S. Person?
[quote]Definition of a U.S. person:
For federal tax purposes, you are considered a U.S. person if you are:
• An individual who is a U.S. citizen or U.S. resident alien;
• A partnership, corporation, company, or association created or organized in the
United States or under the laws of the United States;
• An estate (other than a foreign estate); or
• A domestic trust (as defined in Regulations section 301.7701-7[/quote]
I am none of these at the present moment. I will become a US person when I pass the substantial presence test and become a resident alien in August? Or am I missing something? Are these requirements in terms of what could happen in this calendar year?
[quote]Definition of a U.S. person:
For federal tax purposes, you are considered a U.S. person if you are:
• An individual who is a U.S. citizen or U.S. resident alien;
• A partnership, corporation, company, or association created or organized in the
United States or under the laws of the United States;
• An estate (other than a foreign estate); or
• A domestic trust (as defined in Regulations section 301.7701-7[/quote]
I am none of these at the present moment. I will become a US person when I pass the substantial presence test and become a resident alien in August? Or am I missing something? Are these requirements in terms of what could happen in this calendar year?
I'm quite aware of these definitions, and so are you -- now. So why are you asking?
If you wish to file a W8-BEN, go ahead. Your bank simply wants a form to put in their file. They don't want 2 forms. I presume you opened this account months ago, and they are just now asking for this form. Show what importance it has.
HOWEVER, Since you meet the treaty definition of US resident (which overrides IRS regs, btw), and you are not claiming a treaty benefit, and you are not subject to back-up withholding, and you will file a 1040 this year, and you are a Cdn invoking your treaty right to file as any US citizen would, and you have an SSN and you are no longer resident of another country! All these things make filing a W-9 the 'more' correct form. (which I presume is why you bothered to ask).
Have you filed in either yet? because this is way too much time to spend on this matter.
If you wish to file a W8-BEN, go ahead. Your bank simply wants a form to put in their file. They don't want 2 forms. I presume you opened this account months ago, and they are just now asking for this form. Show what importance it has.
HOWEVER, Since you meet the treaty definition of US resident (which overrides IRS regs, btw), and you are not claiming a treaty benefit, and you are not subject to back-up withholding, and you will file a 1040 this year, and you are a Cdn invoking your treaty right to file as any US citizen would, and you have an SSN and you are no longer resident of another country! All these things make filing a W-9 the 'more' correct form. (which I presume is why you bothered to ask).
Have you filed in either yet? because this is way too much time to spend on this matter.
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
One should never file an NR73 unless asked for it by CRA.
Your departure return filed next spring will be enough. what you do need to do now I to notify anyone in Canada that you deal with financially (bank, RRSP. etc) that you are now living in US
Your departure return filed next spring will be enough. what you do need to do now I to notify anyone in Canada that you deal with financially (bank, RRSP. etc) that you are now living in US
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