Purchasing property in the US on TN & F1

[arc78]

My wife & I have been living & working in the US for the past year & a half. She is starting a PhD program in September & will switching from an H1-B to an F1. I am here on TN status. We thought since we'll be here for the next 5 years at least we would rather purchase a house rather than continue to rent.

Would this impact the chances of her changing to an F1 visa & my ability to renew my TN? From what I've read as long as we can show we still have ties to Canada it shouldn't be a problem.

Thanks for any suggestions/help.

[Steven]

TN-1 doesn't require an abode in Canada (you just have to prove your job is temporary), but F-1 does require proof of an abode outside the US. Generally speaking people on F-1 wouldn't establish residential ties to the US so you have to bear that in mind.

How F-1 is set up really is for people in their early 20s, because for example they're supposed to file 1040NR and 8843 every year with the IRS. The 8843 exempts the person from paying US FICA taxes and it also means any money sent from abroad is not subject to US income taxes.

If you're already filing jointly on 1040, you can carry on doing it that way, just bear in mind the system wasn't really set up that way. All of the advice the college will give your wife will be to do it a different way, but your circumstances are unusual.

But simply have a house in the US means nothing, anyone can buy a house in the US, the question as you say is whether you have residential ties abroad, or your wife does at any rate.