VISA Taxes
Frequently Asked Questions
Tax Information for Canadian Professionals Working in the U.S.
No.
A TN visa does not determine your tax obligations.
Taxes are based on tax residency, which is determined separately by the United States and by Canada.
Yes.
If you work in the United States under a TN visa, you must pay U.S. taxes on income earned in the U.S. from day one.
This usually includes:
U.S. federal income tax
State income tax (depending on the state)
Social Security and Medicare (FICA), unless a specific exemption applies
- Non‑resident for tax purposes
- File Form 1040‑NR
- Report only U.S.‑source income
- Resident for tax purposes (based on days of presence)
- File Form 1040
- Report worldwide income
It depends on whether you remain a Canadian tax resident.
Canada taxes individuals based on residency, not visa type.
If you remain a Canadian tax resident:
You must file a Canadian tax return
You report worldwide income, including U.S. wages
You generally do not pay tax twice, because Canada allows foreign tax credits for taxes paid in the U.S.
This is the most common situation during the first year on a TN visa.
If you become a non‑resident of Canada:
You generally pay taxes only in the United States
You may still need to file in Canada only if you have Canadian‑source income (such as rental income or investments)
This typically happens when most residential ties to Canada are severed and the move to the U.S. is more permanent.
No.
The U.S.–Canada Tax Treaty exists to:
Preventing double taxation
Allow foreign tax credits
Resolve situations where both countries consider you a tax resident
Because of this treaty, the same income should not be taxed twice.
Each case is different. Factors that can affect tax obligations include:
Number of days spent in the U.S.
Housing and family location
Bank accounts and assets
Length and intent of stay
Yes , strongly recommended.
Working with a cross‑border tax professional (U.S.–Canada) during your first TN year can help:
Ensure correct filings
Avoid penalties
Prevent overpayment of taxes