1. Mexico
2. TN Visa
3. California
4. No other assets, besides several 0 balance bank accounts mostly fintech like CHIME, CASHAPP, or that kind of neobanks.
5. 3 years, or as long as I can renew the visa
I have pass the substantial presence test, and I'm aware that I'm taxable in US, but I'm also taxable in Mexico, that's why want know how to use the US-Mex tax treaty to avoid potential doble taxation.
According to IRS definition of non-resident alien
https://www.irs.gov/individuals/international-taxpayers/foreign-persons
Nonresident alien:
A nonresident alien is an individual who is not a U.S. citizen or a resident alien. A resident of a foreign country under the residence article of an income tax treaty is a nonresident alien individual for purposes of withholding.
and base on the residence article of UNITED STATES - MEXICO INCOME TAX CONVENTION:
https://www.irs.gov/pub/irs-trty/mexico.pdf
Article 4 subitem 2: Where by reason of the provisions of paragraph 1, an individual is a resident of both Contracting
States, then his residence shall be determined as follows:
a) he shall be deemed to be a resident of the State in which he has a permanent home.
Then I'm a resident of Mexico according to this treaty, and by extension a nonresident alien individual for purposes of withholding.
cant find the specific info for the TN Status, but I'm thinking it might apply same rules of the H1B Status.
https://www.irs.gov/individuals/international-taxpayers/taxation-of-aliens-by-visa-type-and-immigrat...
H-1B aliens who are nonresident aliens on the last day of the taxable year generally must report their U.S.-source fixed, determinable, annual, or periodical (FDAP) income (e.g., compensation earned from working in the United States) and income effectively connected with a U.S. trade or business (ECI) on Form 1040-NR, U.S. Nonresident Alien Income Tax Return. For details on these rules, refer to Taxation of Nonresident Aliens.
If claiming treaty benefits, H-1B aliens must report both the income and the treaty benefit on Form 1040-NR, with Form 8833 (if required). Please refer to Claiming Tax Treaty Benefits.
I'm understanding it correctly?
