This means also filing Form W-4, Employee's Withholding Certificate, with their employers. federal income tax in the same way that the country’s citizens would, including applicable provisions for exemptions and medical status, among others. Those who are classified as resident aliens have the same tax responsibilities as citizens of the United States. TN visa holders pay their Federal income taxes based on their resident status. Which one the TN status worker actually pays will depend on relevant treaties and they are residents or nonresidents. There are three main tax categories that TN visa holders may be liable for - Federal Income Tax, Social Security and Medicare taxes and Federal Unemployment Tax. For Canadian citizens, keep in mind that the provisions contained in the Canada-United States Income Tax Convention do not allow for an outright exemption from filing an income tax return. and their respective home countries.Ĭonsidered among the most complex tax systems in the world, this system is administered by the U.S. The United States income tax system is based on either citizenship or residence, so TN visa holders may find themselves subject to taxation on their world income in both the U.S. However, the TN visa beneficiary must demonstrate their intention to return to their home country upon the expiration of their TN visa status even though they are allowed to renew it. for up to three years, with the option of renewing indefinitely upon expiry. TN Visa Duration of StayĪs a temporary visa, Canadian or Mexican citizens on TN status may stay in the U.S. Unlike many other dependent visas like the L-2 and H-4 visas, however, the TD visa does not allow spouses to seek employment in the U.S. Legal spouses and children (below 21 years old) of TN Visa holders may also enter and live in the United States on a derivative status visa, known as the TD visa. That being said, the specific eligibility criteria are quite different for Mexican and Canadian citizens. employer and must have received a job offer (whether part-time or full-time) before starting the TN visa application. One important thing to note here is that you must also have the necessary skills needed by a U.S. Common professions eligible on the list include accountants, attorneys, engineers, dentists and scientists. If you are a Mexican or Canadian citizen seeking entry into the United States for the purposes of employment and your profession falls under the NAFTA list of professions, then you may qualify for a TN Visa. NAFTA is the largest free trade agreement in the world since the gross domestic product of its three members exceeds $20 trillion. It was created under the terms of the North American Free Trade Agreement (NAFTA), an accord by the United States, Canada and Mexico set up to remove tariff barriers and increase investment opportunities among the three countries. nonimmigrant work visa that caters to only Canadian and Mexican citizens. That’s why we’ve put this guide together on the most important tax information for TN visa holders so you can that you file your taxes correctly before this year’s April 15th deadline. Calculating your tax burden and making sure all the proper forms have been submitted can prove to be a formidable task. But even more so as a TN visa holder as you have to figure out certain special considerations like residency status, income tax treaties and totalization agreements. tax filing season is here again and with it a fair amount of complex processes.
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