Serbinski Weinberg, Ltd., Certified Public AccountantsTax and other financial matters concerning Canadian professionals in the U.S. and U.S. citizens in Canada Includes income and estate taxation, social security, health insurance, retirement accounts, cross border tax issues, and other matters affecting your pocketbook. Topic Administrator: Mark T. Serbinski, CA, CPA of Serbinski Weinberg, Ltd. CPA's and Serbinski Partners, Chartered Accountants

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Topic: Tax and Financial

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Posted by JC on August 31, 2004 at 01:16:00:

In Reply to: Re: CDN on TN - tax forms and 401K questions posted by NelsoN on August 27, 2004 at 12:50:49:

Hi and thank you in advance for you help. I am a Canadian citizen living in Canada and crossing the border daily to work for in the US for a US company. I currently hold a TN visa and they take out the following deductions: - Federal Income tax - Social Security tax - Medicare tax - NY State Income tax - NY SUI/SDI tax - 401K (I have no personal 401k deductions) - Invest My questions are as follows: 1. What tax forms should my employer give me at the end of the year? 2. Which tax forms should I fill out to file my US taxes? 3. When/if can I can I claim/transfer my 401K to Canadian RRSP with minimal penalties? 4. How would I find out my total contributions to my 401K other than my pay stub? I would like to verify the amount 5. I contribute annualy to my Canadian RRSP, should I contribute to 401K too? Thank you again.
1. You will get a W-2 like every other employee at your firm.

2. Likely a 1040NR, although you can choose to fill a 1040, but will make a much more complex return, and likely not save you any overall taxes.

3. Your 401(K) is best left in US until you need it. I have a question about your statement that you have no 'personal' 410(k) deductions. Does this mean you are not contributing, but your company is?.

4. Ask any of your co-workers, they will no exactly how much they have in their accounts, they surely know how to track it. Again, you mention your 401(K) contributions, but you said you don't have any personal 401(k) deductions. Are you sure you have a 401(k) and not just a straight pension plan?,

5. 401(k) contributions are NOT deductible in Canada, so this would be a waste, unless your firm gives you matching amounts. Even then its not that great.

Please clarify what you and/or the company are contributing to your retirement plan.

If you're living in Canada, shouldn't you be filing as Canadian resident, with RRSP, and claim foreign tax credit on your US return? (but what about NY state tax? perhaps credit against Cdn tax?)

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