TN Visa Professional

You work in the US under a TN visa issued through the USMCA (formerly NAFTA) agreement. As a US tax resident you must report worldwide income to the IRS while managing Canadian departure or deemed-residency obligations.

Complexity3/5Medium-High

US Status

Resident alien (passes SPT or elects first-year choice)

Canada Status

Non-resident or deemed non-resident (factual ties severed)

Typical Forms Required

  • Form 1040 (US Individual Income Tax Return)
  • FinCEN 114 / FBAR (foreign bank accounts over $10,000)
  • Form 8938 / FATCA (specified foreign financial assets)
  • Form 8833 (treaty-based return position, if claiming treaty benefits)
  • Form 3520 / 3520-A (if TFSA held)
  • T1 General (Canadian final or departure return)
  • T1135 (Canadian foreign income verification, if applicable)

Key Risks

Failing to file FBAR for Canadian bank and investment accounts

Not reporting TFSA as a foreign trust (Forms 3520/3520-A)

Missing the Canadian departure return or deemed disposition

Holding Canadian mutual funds classified as PFICs under US tax law

Step-by-Step Filing Guide

  1. 1

    Determine your US residency start date using the Substantial Presence Test or first-year choice election.

  2. 2

    File a Canadian departure return (T1) reporting deemed disposition of assets up to your departure date.

  3. 3

    Gather all Canadian bank and investment account peak balances for FBAR filing.

  4. 4

    Prepare Form 1040 reporting worldwide income from your residency start date onward.

  5. 5

    Complete Form 8938 if your foreign financial assets exceed the reporting thresholds.

  6. 6

    File Forms 3520 and 3520-A if you held a TFSA at any point during the tax year.

  7. 7

    Claim the Foreign Tax Credit (Form 1116) for any Canadian taxes paid on the same income.

  8. 8

    E-file FBAR separately through the FinCEN BSA website by the April 15 deadline (auto-extended to October 15).

Frequently Asked Questions

Do TN visa holders need to file US taxes?

Yes. Once you pass the Substantial Presence Test (typically after your first full calendar year), you are a US tax resident and must file Form 1040 reporting worldwide income.

Can I still contribute to my TFSA while on a TN visa?

Legally you can if you have Canadian contribution room, but the US treats a TFSA as a foreign trust. The annual reporting burden (Forms 3520/3520-A) and potential tax on growth usually make it impractical.

What happens if my TN visa is denied at the border on renewal?

Your US tax residency does not depend on visa validity. If you were physically present long enough to pass the SPT, you are still a US tax resident for that year regardless of visa status.

Do I need to file a Canadian return after I leave Canada?

You must file a departure return for the year you leave. After that, you only file Canadian returns if you have Canadian-source income such as rental income, pensions, or capital gains on taxable Canadian property.

Find Your Exact Filing Requirements

Answer a few questions in our guided wizard to get a personalized checklist of every form, deadline, and risk specific to your cross-border situation.

Start the Wizard