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Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2429
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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I am Canadian, and I possess a J1 Visa which indicates that

Customer Question

I am Canadian, and I possess a J1 Visa which indicates that I am a trainee. I am doing my internship for a private company in USA for four months. I have the following tax questions. Please help. I am very confused by US's complex tax system.

1. What form do I file the tax with? (I think I should use a 1040 NREZ)
2. I believe US and Canada have a tax treaty. Am I exempted from paying the US tax?
Submitted: 7 years ago.
Category: Tax
Expert:  Anne replied 7 years ago.
HiCustomerbr />
Thank you for using justanswer. You are correct in that you will file as a Non Resident alien (1040NR or 1040NREZ) under the terms of your J1 visa.

Siince you will be filing as a Non Resident Alien, you will only report the income you earned in the US on your 1040NR or 1040NREZ.

The US and Canada do have a tax treaty. Most Non Resident Aliens may claim a personal exemption only for themselves. See line 13 of

Form 1040NR-EZ

They may not claim any tax exemptions for their spouses or their children (unless the child was born in the US) this means that as married person filing as a Non Resident Alien, they pay higher taxes than most married US Citizens.

Due to the treaty between the US and Canada, if you are married, and your spouse had no US income, you may claim not only yourself, but your spouse and any children as your dependent as long as your spouse and children have no US income. Since each exemption is worth $3650 this year, if you are married and have children, this could mean that your taxable income is reduced by quite a bit. Please see line 13 of Form 1040NR EZ

The treaty also covers Social Security tax. As a Canadian Citizen, you would only be responsible for paying into the Canadian social security system.

You will still have to complay with the Canadian tax laws since you will still be considered a Canadian citizen.

Please see below for more indepth information.

J-1 visa holders.

Publication 519 (2008) U.S. Tax Guide for Aliens

I hope this helps.
Customer: replied 7 years ago.
I was unable to wait for your reply and found the answer to my question on my own using google and visiting many sites. sorry for wasting your time however time was of the essence and i need to look the information up for immediate use. thank you
Expert:  Anne replied 7 years ago.
I'm glad you found the information you needed. I hope you will come back to Just Answer in the future.