Lunchtime takeaway: When U.S. tax matters

We’re committed to making your practice better, so all this month, we’re delivering you a daily takeaway.

Today’s takeaway is…

When U.S. tax matters

As of 2010, a Canadian self-employed person who works in the U.S.; earns more than 50% of his or her income from U.S. sources; and is present in the U.S. for more than 183 days in a twelve-month period is subject to American taxation laws.

That person must file Form 1040NR, an income tax form for non-U.S. residents to claim U.S. income and expenses, by the April 15 U.S. tax deadline; claim income and allowable expenses from U.S. sources; and pay U.S. federal tax on net income.

Want more? Read: Ask clients about cross-border activities

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The staff of Advisor.ca have been covering news for financial advisors since 1998.