Filing 2025 Taxes on TN Visa as Non-Resident Alien (NRA) with IRS - Any Forms Missing?

Based on what you've described, you've got most of the important forms covered for your situation as a non-resident alien on a TN visa. Since you're maintaining substantial Canadian connections and have been in the US less than 183 days, your approach with the 1040-NR seems correct. A couple things you might be missing: You should also file FinCEN Form 114 (FBAR) since your Canadian bank account exceeds $10,000. This is filed separately from your tax return through the BSA E-Filing System. Consider Form 8833 if you're claiming any benefits under the US-Canada tax treaty. This might help reduce your tax burden. For your underpayment penalty concern - you might qualify for a waiver. Check if you meet the requirements for the "first-time penalty abatement" if you've had a good compliance history in previous years. You can request this when you file or after receiving a penalty notice. Another option is to see if you qualify for any of the statutory exceptions on Form 2210. Particularly look at whether your withholding equals at least 90% of the current year tax or 100% of your previous year's tax (though this might not apply if you weren't filing US taxes last year).

After struggling with a similar situation last year (TN visa holder from Canada), I discovered taxr.ai (https://taxr.ai) which saved me a ton of headaches. It specializes in analyzing documents for international tax situations like yours. I uploaded my documents and answered a few questions about my Canadian accounts and property. It flagged that I was missing Form 8938 (Statement of Foreign Financial Assets) since my TFSA and Canadian accounts together exceeded the threshold. Without that form, I could have faced serious penalties. It also helped me identify tax treaty benefits I could claim on Form 8833 that reduced what I owed by about $2,000. The system provided all the specific treaty articles to reference, which I wouldn't have known about otherwise.

I have to follow up on my skeptical comment from before. I decided to try taxr.ai after getting quoted $1,800 by a cross-border tax specialist for my TN visa situation. The platform actually identified several forms I was completely unaware of, including Form 8621 for my Canadian mutual funds (apparently they're considered PFICs). What impressed me most was the detail on exemptions under the US-Canada tax treaty that applied specifically to my situation. I was able to exclude certain types of income and reduce my tax bill significantly. The documentation it provided with specific treaty articles gave me confidence that I could defend these positions if audited. It also correctly flagged that my employer had been withholding at resident alien rates instead of non-resident rates, which explained why I was facing an unexpected tax bill.

Hey, I was in your exact situation last year with the underpayment penalty issue. After trying for WEEKS to reach someone at the IRS for guidance, I found Claimyr (https://claimyr.com). I was super doubtful but watched their demo (https://youtu.be/_kiP6q8DX5c) and decided to try it. They got me connected to an actual IRS agent in about 20 minutes when I had been trying for days on my own. The agent confirmed I qualified for first-time penalty abatement and processed it right there on the phone. She also explained that my employer should have been using different withholding tables for non-resident aliens on TN visas. The agent also helped me understand which treaty benefits I could claim to reduce my tax burden going forward. This was stuff I couldn't find clear answers to anywhere online.

I have to eat my words and follow up here. After my skeptical comment, I tried Claimyr out of desperation because I needed answers about my TN visa tax situation before the filing deadline. I got connected to an IRS agent in about 15 minutes. The agent confirmed I qualified for the first-time penalty abatement AND explained exactly how to document my Canadian connections properly on Form 8840 to ensure my non-resident status wouldn't be questioned. The agent also walked me through how treaty benefits apply specifically to TN visa holders and which forms I needed to file to claim them. This saved me about $3,200 in taxes I would have otherwise paid. I'm still shocked at how much clearer everything is after one actual conversation with an IRS representative instead of trying to piece together information from various websites.

Don't forget Form 8992 if you have any investments in Canadian corporations that might be considered "controlled foreign corporations." This tripped me up last year on my TN visa and resulted in a letter from the IRS. Also, if your TFSA has any mutual funds or ETFs, you likely need Form 8621 for each one as they're considered PFICs (Passive Foreign Investment Companies). This form is extremely complicated and might be worth getting professional help with. For your penalty issue, make sure to attach a statement explaining that you're a first-time filer as a non-resident alien and that your employer applied incorrect withholding based on resident status. In my experience, a clear explanation can help avoid the penalty entirely.

I was in this situation a few years ago. Make sure your employer is using the correct withholding tables for nonresident aliens! Many HR departments just default to the regular withholding without understanding that NRAs can't claim the standard deduction. For the penalty, file Form 2210 and check the box in Part II that says "The taxpayer requests a waiver of the penalty." Attach a statement explaining that you're new to the US tax system, on a TN visa, and that your employer was withholding incorrectly despite your best efforts. I did this and the IRS waived my penalty completely. It's worth a try!