[ymy]

Hello,

I am a Canadian and hold TN visa works in the U.S. MI since last Oct.2005 as an independent contractor. I live in windsor Ontario Canada and commute everyday across border to work at MI. My payor did not hold any tax from me, and he asked me to file a form 8233 because of the treaty benefit. I got 1042-S form my payor for about $9400 at year end. I am working on my form 1040NR but confused for a few things:

1. Do I get exemption for U.S tax or even MI state tax because of the treaty benefit ? And only need to pay Canada tax? How about if my income is more than $50k next year?
2. What other form do I need to fill? 1040 schedule C or 1040-C?
3. I figure out my income should go 1010NR line 22, is this right? And Line 23 and line 35 all go zero?
4. If I have some work related expenses, like laptop and some tools, do I need to claim these expenses from U.S tax return or Canada tax return?

Thanks a lot!
I really appreciate your answer.

YMY

[AtlantaTaxExpert]

VMY:

Sorry, but you need to consult with a tax professional who has experience with both Canadian and U.S. tax law.

I have no experience with the TN visa. Logically, it seems to me that you would file Form 1040NR with a Schedule C. You claim the work expenses on the Schedule C. You would pay the income tax (I do not think SE tax would apply to you), then claim the tax paid as a credit on your Canadian tax return.