Tax Treaty Question

Canadian Expats and travelers in the USA can communicate with each other here!

Moderator: visaplace.com

AnniemayNew Member
Topic author
Posts: 1
Joined: 12 Apr 2009

Tax Treaty Question

Post Sun Apr 12, 2009 10:52 am

I hope this is a quick and easy question.
I'm filling out my 1040NR-EZ form and will also include the 8843.
I've made more than $10,000 in California under OPT as part of my F1 visa.
Am I able to take advantage of any sort of tax treaty? And if so, do I indicate $10,000 on line 6 on the 1040?
I know I've left this to the last minute so I apologize! THANKS!
Top
StevenCanuckAbroad VIP
Posts: 3637
Topics: 2
Joined: 28 Sep 2007
Location: Calgary

Re: Tax Treaty Question

Post Sun Apr 12, 2009 10:59 pm

Depends on the source, you're a bit vague on how you've "made" the money, but rarely would you have something that fits on that line.

You use the W-2 to fill in line 3. However if you're able to file an 8843 bear in mind you are exempt from FICA withholding. If your employer withheld it you should have informed them on your W-4 that you are a non-resident alien student (and if you can find the instructions that tell you to do that I will be very impressed).

If they have withheld FICA you can recover it by filing Form 843.
Steve.
Top
hmzNew Member
Posts: 1
Joined: 12 Apr 2010

Re: Tax Treaty Question

Post Mon Apr 12, 2010 9:30 pm

Hi,

I have a question on the tax treaty between canada-us as well.

I am a permanent resident of Canada. I worked for a company in US for 111 days and my income reported on W2 form was 30370 USD. I want to know if I'm eligible to take advantage of the treaty benefits. I read the relevant document in IRS website saying that

"remuneration derived by a resident of a Contracting State in respect of an employment exercised in a calendar year in the other Contracting
State shall be taxable only in the first-mentioned State if:

The recipient is present in the other Contracting State for a period or periods not exceeding in the aggregate 183 days in that year and the remuneration is not borne by an employer who is a resident of that other State or by a permanent establishment or a fixed base
which the employer has in that other State."

, but I don't understand the following part

"remuneration is not borne by an employer who is a resident of that other State or by a permanent establishment or a fixed base
which the employer has in that other State"

Is a US company a resident of US? am I eligible to apply for the treaty?

thanks a lot
Top
agnelsonCanuckAbroad VIP
Posts: 3264
Topics: 1
Joined: 26 Aug 2009

Re: Tax Treaty Question

Post Tue Apr 13, 2010 6:28 am

No. All employemnt wages from US company are taxable in US. Only if the total wages was less than $10K would treaty come into play.
This site is a travel site and not best source for these topics:
TN and TD info: http://forums.immigration.com/forumdisp ... -TN-Status
For US/Cdn taxes and SS/CPP:forums.serbinski.com/index.php
US Marriage-based Immigration: visajourney.com
Top

Did you enjoy this post? Share it!

 
  • Related topics
    Replies
    Views
    Last post