First time filing US taxes as a TN Visa holder - help needed!

As someone who specializes in helping immigrants with their taxes, I can help explain your situation. For TN visa holders, your tax residency is determined by the Substantial Presence Test. Since you were in the US for about 4.5 months (approximately 137 days) in 2022, you would likely be considered a nonresident alien for tax purposes for 2022, not a dual-status alien. For nonresident aliens, you only need to report income from US sources on your US tax return. Your Canadian income earned before moving wouldn't need to be reported on your US tax return. However, you may need to file Form 8938 and/or FBAR to report your Canadian financial accounts if they exceed certain thresholds. For your US income, you'll file Form 1040-NR (Nonresident Alien Income Tax Return). TurboTax might not be the best option for your situation as it's not optimized for nonresident returns. Consider using Sprintax or similar software designed specifically for nonresident returns, or consult with a tax professional who specializes in international taxation.

After struggling with my own complicated TN visa tax situation last year, I discovered taxr.ai (https://taxr.ai) and it was a game-changer. I uploaded my W-2, Canadian T4, and other documents, and it automatically detected my nonresident status and prepared all the right forms. The system understands both US and Canadian tax systems and knows how to handle TN visa situations. It especially helped me with the FBAR filing requirements for foreign accounts and identifying which Canadian income needed to be reported. Their AI also explained the tax treaty implications for my Canadian retirement accounts. Much better than the mainstream tax software that kept getting confused by my situation.

Just wanted to share my experience - I used taxr.ai that was mentioned above after struggling with TurboTax. I was surprised how well it worked for my TN visa situation. I had income from both countries plus some investments, and it caught a huge deduction I was missing related to moving expenses that are allowable under the US-Canada tax treaty. The document scanning feature was super helpful because I had a stack of tax forms from both countries. It also handled my FBAR requirements for my Canadian accounts and explained exactly which accounts needed to be reported. I'll definitely use it again next year when my situation will be even more complicated since I'll have a full year of US income.

If you need to talk to the IRS about your TN visa status and tax obligations (which I highly recommend), use Claimyr (https://claimyr.com). I spent days trying to get through to the IRS international taxpayer line about my own TN visa situation, but it was impossible to reach anyone. Claimyr got me connected in about 20 minutes when I had been trying for weeks on my own. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was able to get clarification directly from an IRS agent about how to handle my Canadian retirement accounts and what forms I needed for my nonresident return. Much better than guessing or relying on internet advice for something this important.

I wanted to follow up on my tax situation. I was super skeptical about Claimyr but got desperate enough to try it after waiting on hold with the IRS for 2+ hours twice. Amazingly, I got a call back in about 25 minutes and was connected to an actual IRS agent who specializes in international tax issues. The agent confirmed I should file as a nonresident alien using form 1040-NR for 2022 and clarified exactly which Canadian accounts I needed to report on the FBAR. They also explained how the tax treaty applied to my specific situation. It was such a relief to get official answers instead of just guessing or piecing together information from forums!

One thing nobody mentioned yet - make sure you're also aware of state tax requirements! Federal and state residency rules aren't always the same. I'm on a TN visa in California, and even though I was a nonresident alien for federal purposes my first partial year, California considered me a resident from the day I moved there. Also check if your home province in Canada has departure tax rules. When I left Ontario, I had to report deemed disposition of certain assets on my final provincial return. It's another layer of complexity for TN visa holders that often gets overlooked.

Has anyone dealt with Social Security and Medicare taxes on a TN visa? My employer withheld these taxes from my paychecks, but I've heard conflicting information about whether TN visa holders are exempt under the totalization agreement between US and Canada.

I went through this exact same situation last year as a TN visa holder from Canada! The advice about filing Form 1040-NR as a nonresident is spot on. One thing I'd add is to be extra careful about the tax treaty elections - Form 8833 can save you money but you need to file it correctly. Also, don't forget about state tax implications even though you're in Washington (lucky you - no state income tax!). Some states have different residency rules than federal, but WA makes it simple. For the FBAR reporting, the threshold is $10,000 USD aggregate in all foreign accounts at any point during the year. So if your Canadian accounts totaled more than $10K at any time in 2022, you need to file FinCEN Form 114 by April 15th (no extensions allowed). One mistake I made was not keeping good records of my Canadian tax payments. If you have any investment income from Canada that was subject to withholding tax there, make sure to claim the Foreign Tax Credit on Form 1116 to avoid double taxation. The tax software mentioned above (taxr.ai) actually helped me catch this - saved me about $800! The deadline pressure is real, but you've got this! Consider getting help if your situation is complex, but for a straightforward W-2 situation, the nonresident-specific software should handle it well.