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USC resident in Canada, and first year with self-employed income.
Using tax software, SE tax is automatically added, and to override this tax requires paper filing. When filing, then I would include the form CPT-56 to exclude the SE tax, and should I also include a 8833?
The exemption of from SE tax is not a tax treaty issue, it is from the Totalization agreement. SE tax is not income tax, it is fica.
The inclusion of CPT-56 will be enough.
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
RE: would include the form CPT-56
note that you don't merely include the form with your tax return. You send the completed form to CRA to stamp and certify and then you include that certified copy with your IRS return.
The stamped form IS the CPT. It is merely a piece of paper until it is duly filled.
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
That was EXACTLY the point I made in my last post - before your last comment- to original poster's comment that "When filing, then I would include the form CPT-56 to exclude the SE tax"
Until it is stamped by Service Canada, it isn't a CPT. That was my original answer days before.
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
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