labren wrote:
Mountaineer42 wrote:
PackerBacker wrote:
dieharder wrote:
Brynjolf wrote:
Most importantly, from the instructions attached to the 8840 form itself:
Substantial Presence Test
You are considered a U.S. resident if you meet the substantial presence test for 2014. You meet this test if you were physically present in the United States for at least:
• 31 days during 2014 and
• 183 days during the period 2014, 2013, and 2012, counting all the days of physical presence in 2014 but only 1/3 the number of days of presence in 2013 and only 1/6 the number of days in 2012.
So, yes, 31 days or more in the US and you must file the form.
But what about the "AND" statement in there? It's not just if you spent 31 days in 2014.
Correct, the 31 day statement must be taken in context with the rest of the text.
... Eric
It is mathematically impossible to meet these conditions together (as in 'and') if you only spend 31 days in 2014. You would have had to exceed the limit of 183 days in the previous years 2013 and/or 2012.
So if I have this correct....most agree that if we have 121 days using the formula provided for 2012,2013,2014 then we do not have to file the form. 2014 we were in the USA for 66 days? The form is quite confusing, even though some said it was easy to understand, maybe it is...I just don't get it yet!
I think you are looking at this wrong....
As soon as you enter the US, the clock starts ticking. Once you meet the threshold of 31 days AND 183 days as calculated, then the IRS considers you a resident for tax purposes and technically, you are required to file and pay taxes. That is the law if you choose to enter the US.
However, the IRS recognizes that you may have a closer connection to Canada, and gives you the option of claiming this exeption by filing the 8840 form. It is strictly up to you. either file an 8840 form --OR-- file a 1040NR tax return and pay taxes.
Even if you don't meet the 31/183 threshold, it is a good idea to file the 8840 as it gives you the opportunity to formally register the days you are in the US and prove that you do not meet the criteria to be considered a resident for tax purposes.
The 8840 is very easy to fill out, and only takes a few minutes ... And a stamp.
It is not true as some people think that filling out the form will result in you having to pay taxes. It is the opposite .. If you are required to file and pay taxes according to the law, the 8840 allows you to avoid that.
