When is Schedule OI Required with 1040NR for Cross-Border Workers?

Yes, Schedule OI is required with Form 1040NR. It's not optional - the IRS uses this schedule to collect additional information about nonresident aliens who file US tax returns. Even though your cousin isn't claiming any treaty benefits or exemptions, she still needs to complete Schedule OI. The schedule asks basic information like passport number, visa type, and dates of entry/exit from the US. Since she's a daily commuter from Canada, she should be keeping records of her border crossings (though she doesn't need to list every single date). Make sure she indicates her tax residency status as Canada on this form, which aligns with her intention to file as a Canadian resident. The good news is that Schedule OI is relatively straightforward compared to other tax forms. Just make sure all information matches her other documentation like I-94 records, visa paperwork, etc.

After struggling with my own cross-border tax situation last year, I found this amazing tool that analyzes tax documents and gives you personalized guidance. It's called taxr.ai (https://taxr.ai) and it saved me hours of confusion. I uploaded my W2 and previous year's return, and it immediately identified that I needed to file Schedule OI with my 1040NR and explained exactly why. The tool walks you through each section of the form and explains what information is needed. For commuter situations like your cousin's, it has specific guidance on how to document border crossings without listing every single date. It also explains which sections of Schedule OI apply to different visa types and residency situations. Seriously worth checking out!

Just wanted to update everyone. I tried taxr.ai after seeing it mentioned here, and it was incredibly helpful for my cross-border situation. It correctly identified that I needed Schedule OI and walked me through exactly what information to include as a daily commuter. What really impressed me was how it explained the "days of presence" calculation and helped me document my border crossings in a way that satisfied IRS requirements without being overly complicated. It also had specific guidance on how the US-Canada tax treaty applied to my situation. Wish I'd known about this tool years ago instead of paying expensive accountants who sometimes gave contradictory advice!

If your cousin needs to talk to the IRS about her specific situation (which I recommend for first-time filers), good luck getting through to them! I spent WEEKS trying to get someone on the phone about my 1040NR questions. After nearly giving up, I found a service called Claimyr (https://claimyr.com) that actually got me connected to an IRS agent in under 20 minutes. They have a demo video at https://youtu.be/_kiP6q8DX5c showing how it works. I was able to confirm directly with the IRS that Schedule OI is required with Form 1040NR, and the agent walked me through some of the trickier parts specific to my Canadian commuter situation. Having that direct confirmation from the IRS gave me peace of mind that I was doing everything correctly. It's definitely worth using Claimyr if you have any specific questions about your cousin's situation.

I have to admit I was super skeptical about Claimyr, but after seeing it mentioned here, I decided to try it as a last resort for my cross-border tax questions. I'm shocked to report it actually worked! After trying for weeks to reach someone at the IRS international taxpayer line, Claimyr got me connected in about 15 minutes. The IRS agent confirmed that Schedule OI is absolutely required with Form 1040NR and explained exactly how to fill it out for my commuter situation between Canada and the US. They also clarified which sections applied to me based on my specific visa type. This saved me from potentially making a costly mistake on my return. Sometimes you really do need to hear it directly from the IRS to be sure!

One important thing to mention about Schedule OI - make sure your cousin answers Question L correctly. This question asks about tax treaty benefits, and even though she's not claiming income exemptions, she may still be benefiting from the US-Canada tax treaty in other ways. If she works in the US but doesn't establish a permanent home there (which sounds like her situation as a commuter), she's actually benefiting from Article IV of the treaty. I'd recommend she consult the actual treaty text or a cross-border tax specialist to make sure she's answering this question properly. Getting it wrong could potentially trigger unnecessary scrutiny.

Don't forget to consider whether your cousin needs to file FinCEN Form 114 (FBAR) if she has non-US bank accounts with over $10,000 combined. This is separate from her tax return but required for many non-residents with foreign accounts.

Great question! I went through this exact situation last year as a Canadian working in Detroit. Schedule OI is definitely required with Form 1040NR - it's not optional regardless of whether you're claiming treaty benefits or exemptions. A few key tips for your cousin's situation: - On Part I, she'll need to list her Canadian passport info and any US visa details - For Part II (days in US), she should keep good records of her work days but doesn't need to document every single border crossing - Part III is where she'll indicate she's claiming Canadian tax residency under the treaty - Make sure her SSN is consistent across all forms One thing that caught me off guard was that even though I wasn't claiming income exemptions, I was still benefiting from the US-Canada tax treaty for residency determination purposes. This affects how you answer some questions on Schedule OI. I'd recommend she review IRS Publication 597 or consider getting professional help for her first filing to make sure everything is done correctly. Cross-border tax situations can get complex quickly!