Non Resident Tax Filing

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sl269
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Joined: Thu Mar 19, 2020 10:44 pm

Non Resident Tax Filing

Post by sl269 » Thu Mar 19, 2020 10:55 pm

I am Canadian who started working in the US with TN visa starting late August of 2019 - from what I've learned, I don't pass substantial residence test, and therefore must file tax refund as non-resident for this year.

That said, according to the US-Canada Tax treaty (https://www.irs.gov/pub/irs-pdf/p901.pdf), it says "Income that residents of Canada receive for personal services performed as employees (dependent personal services) in the United States is exempt from U.S. tax if....the residents are present in the United States for no more than 183 days in any 12 ­month period beginning or ending in the tax year".

My questions are:

1) Does this treaty mean I am exempt from paying U.S. tax this year? If so, how could I get refund for income that was already withheld as tax (would I have to file 1040-NR Form, along with Form 8833)?
2) How is the treaty applicable to the State tax, if it is? Are non-residents liable for state tax?
3) Is there any benefit in filing 1040NR vs. 1040NR-EZ?

Thank you so much in advance for the help!

nelsona
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Re: Non Resident Tax Filing

Post by nelsona » Mon Mar 23, 2020 8:18 pm

if you moved to US, you cannot avail yourself of that portion of treaty. It is for Cdn residents commuting to US. Stater always taxes work done in that state, no treaty exception.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

sl269
Posts: 7
Joined: Thu Mar 19, 2020 10:44 pm

Re: Non Resident Tax Filing

Post by sl269 » Tue Mar 24, 2020 4:40 pm

Thanks for the reply. Very helpful. Just for clarification, I would just file NR this year and regular 1040 from next year on? Thank you once again.

sl269
Posts: 7
Joined: Thu Mar 19, 2020 10:44 pm

Re: Non Resident Tax Filing

Post by sl269 » Tue Mar 24, 2020 4:45 pm

nelsona wrote:
> if you moved to US, you cannot avail yourself of that portion of treaty. It
> is for Cdn residents commuting to US. Stater always taxes work done in that
> state, no treaty exception.

Should I file 1040-NR or would I benefit by filing full year 1040 (as per viewtopic.php?t=12471) since I can claim standard deduction? If I do file 1040 (article xxv non-discrimination), does this mean I would have to attach some form along with 1040 (maybe 8843..?) to indicate this? Thank you

sl269
Posts: 7
Joined: Thu Mar 19, 2020 10:44 pm

Re: Non Resident Tax Filing

Post by sl269 » Tue Mar 24, 2020 4:46 pm

sl269 wrote:
> nelsona wrote:
> > if you moved to US, you cannot avail yourself of that portion of treaty. It
> > is for Cdn residents commuting to US. Stater always taxes work done in that
> > state, no treaty exception.
>
> Should I file 1040-NR or would I benefit by filing full year 1040 (as per
> viewtopic.php?t=12471) since I can claim standard
> deduction? If I do file 1040 (article xxv non-discrimination), does this mean I would
> have to attach some form along with 1040 (maybe 8843..?) to indicate this? Thank you

Just to add, I did not have any income in Canada before I moved to US. Thank you

nelsona
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Re: Non Resident Tax Filing

Post by nelsona » Wed Mar 25, 2020 9:34 am

It is always an option to file full year.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

sl269
Posts: 7
Joined: Thu Mar 19, 2020 10:44 pm

Re: Non Resident Tax Filing

Post by sl269 » Wed Mar 25, 2020 2:16 pm

nelsona wrote:
> It is always an option to file full year.

Thank you so much nelsona for your contribution on this forum.
This is first time filing tax in my life, so I am struggling a lot.

So, is it possible to file full year 1040 instead of 1040-NR even if I don't pass SPT? Could you kindly help elaborate whether I would have to file extra form that allows me to do this? Would you suggest I file full year given I did not have any income in Canada before I moved to US in Aug 2019 - would I be eligible for standard reduction (I am not married and just filing for myself)?

Thanks again for your kind help.

nelsona
Posts: 16452
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Non Resident Tax Filing

Post by nelsona » Wed Mar 25, 2020 4:53 pm

No extra form. Treaty Article XXV. Covered here many times, so happy browsing.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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