Hello,
I am a Canadian Engineer on assignment for a year in the U.S. My company is a registered Canadian Corporation with a U.S. office branch. I have been living in the USA where the client site is and I come home to Canada occasionally. I will be in the USA for more than 183 days. I am paid in Canadian funds that is deposited into my Canadian bank account. I have been issued a T4 where taxes, CPP, and EI contributions are deducted from my pay as if I'm living/working in Canada. I
1. For U.S. Tax purposes, what is my status? Resident Alien or Non-Resident Alien?
2. What are my first steps?
i. File a 1040NR Form with a W-7 (for an ITIN) and an 8840 forms (Closer Connection Exception Statement for Aliens)
ii. File my Canadian Tax return
3. What is the proper procedure in filing a U.S. tax return?
4. In my Canadian tax return, how do I claim foreign taxes paid or where do I enter this information?
Thank you for your help in advance.
Canadian on a TN Visa living in the USA
Moderator: Mark T Serbinski CA CPA
1. To be considered resident you need to pass the SPT test. If the 183 days are in one calendar year then yes you are considered resident from the 1st day you were in US that year. If not in one year you have to do the SPT math
2. Because you are still a resident of canada also, you can elect to be treated as an non-resident by filing a 1040NR. 8840 cant apply if you meet 183 days in one year. Form 8833 would instead be used to claim treaty non-resident. In any event you would apply for a ITIN with your tax return.
3. Too vague. You follow instructions like you do in canada.
4. Well, first you have to determine what foreign taxes you owe. It is possi le that even though you are non-resident and are being paid by a Cdn employer, you name still have to report your wages on a US and state return. I would be making your compny determine if that is the case. Then whatever taxes you paid on your us returns would be claimed on your cdn return. There are lines in the T1 for that.
2. Because you are still a resident of canada also, you can elect to be treated as an non-resident by filing a 1040NR. 8840 cant apply if you meet 183 days in one year. Form 8833 would instead be used to claim treaty non-resident. In any event you would apply for a ITIN with your tax return.
3. Too vague. You follow instructions like you do in canada.
4. Well, first you have to determine what foreign taxes you owe. It is possi le that even though you are non-resident and are being paid by a Cdn employer, you name still have to report your wages on a US and state return. I would be making your compny determine if that is the case. Then whatever taxes you paid on your us returns would be claimed on your cdn return. There are lines in the T1 for that.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Re: Form 8833
Which checkbox applies to my situation?
-The taxpayer is disclosing a treaty-based return position as required by section 6114
-The taxpayer is a dual-resident taxpayer and is disclosing a treaty-based return position as required by Regulations section 301.7701(b)-7
1.b.Which Treaty provision is applicable?
or just leave everything blank and explain in Section 6.?
Which checkbox applies to my situation?
-The taxpayer is disclosing a treaty-based return position as required by section 6114
-The taxpayer is a dual-resident taxpayer and is disclosing a treaty-based return position as required by Regulations section 301.7701(b)-7
1.b.Which Treaty provision is applicable?
or just leave everything blank and explain in Section 6.?