Personal Finance

2019 Income from Canada and US - taxes ?

  • Last Updated:
  • Apr 10th, 2020 10:00 am
[OP]
Newbie
Dec 9, 2014
45 posts
3 upvotes
Windsor, ON

2019 Income from Canada and US - taxes ?

Hello all! Question regarding filing for US income as a Canadian. For tax year 2018, I was working in Canada and filed taxes for myself and my family with Studio Tax for the first time and I really liked the software and had no issues filing for all of us. In 2019, I started the year working in Canada then took a job as a Canadian commuter working in the US for a US company making US funds (including Federal, State and Local taxes). I did some research online and from my understanding, Studio Tax will not file US income for Canadians (is this correct)? If it is, can anyone recommend software (ideally free) that will let me file for both US and Canadian taxes online? Also, any other recommendations? I assume the more tedious way to go is to file my Canadian Income using Studio Tax then filing for my US income using some other software?

I truly appreciate any help / feedback. Thanks in advance!
5 replies
Newbie
Aug 12, 2017
22 posts
9 upvotes
I am a CPA, and I do not think there are any off the shelf tax programs that can help you file the US return.

What I have done for clients, both at work and on the side, is to fill out the US returns on downloadable fillable PDF forms (all IRS forms are like this, most states are too).

In addition, I believe for the IRS your 1040NR signed form has to have the actual ink signature on it...photocopies get rejected.

So I would use Studio tax to file my Canadian return (making sure you account for the US credits available) and then do up the US return using your W-2 and submit that. Yes, you will wait about 4 months to get a refund, but it would be in US$. You will probably owe in Canada. Ultimately with the tax treaty most of the taxes should offset, however, I only do 5-6 a year so somebody else might be better to answer this.

C
Deal Addict
User avatar
Aug 7, 2010
1035 posts
392 upvotes
Graduate3232 wrote: Hello all! Question regarding filing for US income as a Canadian. For tax year 2018, I was working in Canada and filed taxes for myself and my family with Studio Tax for the first time and I really liked the software and had no issues filing for all of us. In 2019, I started the year working in Canada then took a job as a Canadian commuter working in the US for a US company making US funds (including Federal, State and Local taxes). I did some research online and from my understanding, Studio Tax will not file US income for Canadians (is this correct)? If it is, can anyone recommend software (ideally free) that will let me file for both US and Canadian taxes online? Also, any other recommendations? I assume the more tedious way to go is to file my Canadian Income using Studio Tax then filing for my US income using some other software?

I truly appreciate any help / feedback. Thanks in advance!
Where you present in the USA at least 183 days (not counting the days you were commuting to/from) to meet the Substantial Presence Test ? If yes, and depending on how much money you made you may qualify for free filing as a "US resident for tax purposes": check this tool.
[OP]
Newbie
Dec 9, 2014
45 posts
3 upvotes
Windsor, ON
Thecottager wrote: I am a CPA, and I do not think there are any off the shelf tax programs that can help you file the US return.

What I have done for clients, both at work and on the side, is to fill out the US returns on downloadable fillable PDF forms (all IRS forms are like this, most states are too).

In addition, I believe for the IRS your 1040NR signed form has to have the actual ink signature on it...photocopies get rejected.

So I would use Studio tax to file my Canadian return (making sure you account for the US credits available) and then do up the US return using your W-2 and submit that. Yes, you will wait about 4 months to get a refund, but it would be in US$. You will probably owe in Canada. Ultimately with the tax treaty most of the taxes should offset, however, I only do 5-6 a year so somebody else might be better to answer this.

C
Thanks Thecottager! My thinking was to do the US return first so you can determine how much US taxes to pay and use this on the Canadian return to determine credits, etc for the US taxes paid?
Last edited by Graduate3232 on Apr 9th, 2020 9:24 am, edited 1 time in total.
[OP]
Newbie
Dec 9, 2014
45 posts
3 upvotes
Windsor, ON
komodor wrote: Where you present in the USA at least 183 days (not counting the days you were commuting to/from) to meet the Substantial Presence Test ? If yes, and depending on how much money you made you may qualify for free filing as a "US resident for tax purposes": check this tool.
Thanks komodor. Actually no I wasn't. I did end up finding a site that does free filing (you have to have made under $63,000 for 2019). Not the most easiest site to navigate through but not impossible either: https://www.olt.com/main/oltfree/default.asp
Deal Addict
User avatar
Aug 7, 2010
1035 posts
392 upvotes
Graduate3232 wrote: Thanks komodor. Actually no I wasn't. I did end up finding a site that does free filing (you have to have made under $63,000 for 2019). Not the most easiest site to navigate through but not impossible either: https://www.olt.com/main/oltfree/default.asp
So you will be filing as a non resident. Does this site support the 1040-NR form?

Top