Hello,
I appreciate if you help me with my question or refer me to a thread where I can find answers.
I am a Canadian citizen who moved to California in 2015 as a J1 dependent, i.e. J2 visa. I got a job in California on a contract for 3 months with no withholding on income, then I got a permanent offer and become an employee of the company with annual income of 100K. Now the employer withholds taxes on my income. Since during 2015 and 2016 I hold J2 visa I am considered non-resident alien for tax purposes. withholding will be done based on filing as Single with only 1 allowance. I realized that I have to pay ssn taxes (FICA) since I'm on J2. I wonder if I can use any tax treaty to lower my withholding rate. I am considered non-resident for Canadian tax purposes as well. Shall I fill form 8233? what article shall I refer to?
Canadian on J2 visa working in California
Moderator: Mark T Serbinski CA CPA
There is no treaty rate on withholding for wages. 8233 doesn't apply in this case.
Besides, withholding is really unimportant in the long run: it is the tax return at the end of the year that will determine your taxes. As long as you have a reasonable amount of tax withheld, you will be fine at year end, even if you owe.
While indeed you are non-resident because of J status, you are of course liable for tax on US-source income
May I ask how you are considered non-resident of Canada? If you were not previously a non-resident of Canada, moving to US on J2 means your REMIAN Cdn tax resident. Canada does not relinquish your tax status unless and until you become one elsewhere, which you have not.
As such you will still be reporting in canada
Besides, withholding is really unimportant in the long run: it is the tax return at the end of the year that will determine your taxes. As long as you have a reasonable amount of tax withheld, you will be fine at year end, even if you owe.
While indeed you are non-resident because of J status, you are of course liable for tax on US-source income
May I ask how you are considered non-resident of Canada? If you were not previously a non-resident of Canada, moving to US on J2 means your REMIAN Cdn tax resident. Canada does not relinquish your tax status unless and until you become one elsewhere, which you have not.
As such you will still be reporting in canada
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 for your reply nelsona. I appreciate it.
My husband called CRA and they told us that we are considered non-resident. We also have a property in Canada which is rented and for that we are also withholding 25% of rent income as nonresidents.
Based on what you said if I am considered resident of Canada, does it mean that I have to report my US income and pay taxes to Canada as well?
My husband called CRA and they told us that we are considered non-resident. We also have a property in Canada which is rented and for that we are also withholding 25% of rent income as nonresidents.
Based on what you said if I am considered resident of Canada, does it mean that I have to report my US income and pay taxes to Canada as well?
If CRA 'told you' that you were non-resident, that should be enough.
However, they only 'tell' you based on what you 'tell' them.
I don't know what you said to CRA. Did you mention you were on J status and are not considered resident on US?
Officially, they have said nothing. An NR73 or result of your departure return for 2015, where you put a departure date, would be better proof.
If you are still Cdn resident, then yes, you would have to report all world income, and pay Cdn tax, but get credit for the tax you calculate in US, including IRS tax, your fica and California taxes.
However, they only 'tell' you based on what you 'tell' them.
I don't know what you said to CRA. Did you mention you were on J status and are not considered resident on US?
Officially, they have said nothing. An NR73 or result of your departure return for 2015, where you put a departure date, would be better proof.
If you are still Cdn resident, then yes, you would have to report all world income, and pay Cdn tax, but get credit for the tax you calculate in US, including IRS tax, your fica and California taxes.
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