I moved in August 16,2010 to the US to work under a TN Visa. I am a non resident for tax purposes. I only have one job and will be receiving a salary from the Employer.

Thus:


1) Do I have to pay income tax? If yes (which I assume), Am I entitled to any benefit under double taxation treaty between Mexico and US?

2) Do I have to pay social sec. and md?

3) Can I get a refund? When and how?

Thanks!

1) Yes, you ARE liable for income taxes. The oinly question is whether you file as a resident alien (filing Form 1040 jointly with your spouse) or as a non-resident alien (filing as a single non-resident if you are not married);

2) Yes. The TNH visa is considered to be a work visa, so yo are liable for FICA (Social Security and Medicare) taxes.

3) You will probably get a partial refund, as foreign nationals are effectively require to over-withhold on their taxes.

Thanks!

I am a non-resident alien (filing as a single non-resident if you are not married). Which form should I use?

Probably Form 1040NR plus Form 3903 to claim your unreimbursed moving costs.

If all of your moving costs were reimbursed and you did NOT pay taxes on those reimbursements, then file Form 1040NR-EZ.

You will also need to file the state tax return for the state in which you worked.

How are foreign nationals "enforced" to over withhold? Is this something the EMPLOYER is required to do? Any special forms the employer needs to do for TN visa holders from Mexico?

It IS a requirement on the employer to NOT allow their foreign national employees to claim MORE than one allowance if they are SINGLE or MORE than TWO alloances if they are MARRIED and are eligible to file jointly.

No specila forms that I know of; it is just an enforcement of an IRS policy.

Thanks!