You may have to file a U.S. tax return if you’re a Canadian that received money from a U.S. source while here in 2020. Since travel here last year was presumably limited due to border closures this may not be much of an issue this year. But those who worked in the U.S. a limited amount of time may be able to establish their tax “home” as Canada. If so any sums would avoid U.S. requirements and only be reportable under a Canadian tax return. The test to determine whether a Canadian qualifies is based in part on time spent in the U.S. If Canada is the appropriate tax authority, international tax experts advise you file a Form 8840, “Closer Connection Exception Statement For Aliens”, with the IRS. It establishes that your proper tax jurisdiction is Canada, and that a U.S. tax return is not necessary. To determine if this is right for you, contact your tax professional or contact me for a referral to an international tax expert at mark@simplysoldaz.com.
