1 : This is regarding resident status for tax purposes. If
my husband works in the US on a TN visa and is paid by the US company under a
W2 status, which I believe makes him an alien resident of the US, but I remain
a Canadian resident for tax, does that make him a dual resident?
2 : Does he file a
Canadian tax return and claim income tax credits for the tax paid on the US
income?
Answer :
1 : The TN status is sometimes informally referred to as a
TN visa. However, because a Canadian does not formally need to request a TN
visa at a US consulate, it is technically not a visa, but rather a status. So,
regardless of your Canadian resident status, as long as he, as a TN status, is
treated as a US resident for tax purposes.he needs to report his worldwide
income and US source income on his US returns as a US resident.
NOTE : He is a dual status alien when he has been both a resident alien and a nonresident alien in the same tax year. Dual status does not refer to US citizenship, only to his resident status for tax purposes in the US. In determining his U.S. income tax liability for a dual-status tax year, different rules apply for the part of the year he is a resident of the US for even tax purposes and the part of the year he is a nonresident. The most common dual-status tax years are the years of arrival and departure.For example, for the part of the year he is a resident alien, he is taxed on income from all sources. Income from sources outside the US is taxable if he receives it while he is a resident alien. The income is taxable even if he earned it while he was a nonresident alien or if he became a nonresident alien after receiving it and before the end of the year.For the part of the year he is a nonresident alien, he is taxed on income from U.S. sources only. Income from U.S. sources is taxable whether he receives it while a nonresident alien or a resident alien unless specifically exempt under the Internal Revenue Code or a tax treaty provision. Generally, tax treaty provisions apply only to the part of the year he was a nonresident. However, an exception to this rule exists. Taxation of Dual-Status Aliens
NOTE : He is a dual status alien when he has been both a resident alien and a nonresident alien in the same tax year. Dual status does not refer to US citizenship, only to his resident status for tax purposes in the US. In determining his U.S. income tax liability for a dual-status tax year, different rules apply for the part of the year he is a resident of the US for even tax purposes and the part of the year he is a nonresident. The most common dual-status tax years are the years of arrival and departure.For example, for the part of the year he is a resident alien, he is taxed on income from all sources. Income from sources outside the US is taxable if he receives it while he is a resident alien. The income is taxable even if he earned it while he was a nonresident alien or if he became a nonresident alien after receiving it and before the end of the year.For the part of the year he is a nonresident alien, he is taxed on income from U.S. sources only. Income from U.S. sources is taxable whether he receives it while a nonresident alien or a resident alien unless specifically exempt under the Internal Revenue Code or a tax treaty provision. Generally, tax treaty provisions apply only to the part of the year he was a nonresident. However, an exception to this rule exists. Taxation of Dual-Status Aliens
2 : Yes; he, as a US resident for tax purposes, needs to report his world wide income and US source income on his US returns, fed and state, returns as long as he is treated as a YUS resident for tax purposes however, he can claim…Readmore…
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