I file 1040-NR. Do I require to file form 8938 and FBAR (FinCEN form-114) ?

[asitamin]

Hello,

I am a Canadian Citizen and now I have acquired a US Green Card. Now, I work for a US company, however working remotely from Canada.

My employer deducts only US Federal tax from my pay and not a state tax as I am not residing in US. I will receive W-2.

I will be filing my 1040-NR return.

My question is, do I need to file Form 8938 and/or FBAR (FinCEN form 114)?

[Anonymous_]

@pk ?

[pk]

@asitamin ,  from your post, I understand  that :

(a) your are a Canadian citizen working remotely for US entity;

(b) you are having US federal taxes withheld ( + FICA ?   ) but not State Taxes  because you are domiciled  in Canada;

(c) you have been approved  for Green Card ( did you enter US post that approval to consummate your status ? )

The issue is whether you ARE a resident of US or  NOT.

If you are a resident, then you are subject to US taxes ( even if domiciled abroad) and you file a form 1040. You are also subject to  FBAR ( Fincen form 114) and FATCA regs ( form 8938 ).

If you are NOT a resident, then you are not subject to US taxes  and NOT subject to FBAR and FATCA regs -- generally.

So the whole thing hangs on your immigration status .

Please answer my questions, including if you are  married ( and filing a joint return) and if so to a US person or not ?

In the meantime  i list below  a page from IRS covering the generalities of  Green Card and as it affects residency --:

https://www.irs.gov/individuals/international-taxpayers/residency-starting-and-ending-dates.

I will circle back once I hear back from you.

pk

@Anonymous_   -- thank you 

[asitamin]

Thanks @pk 

(c) Yes, I had entered US after receiving green card, and returned back in Canada in 1 week. I applied for my SSN in US but have it mailed to me and received it in Canada.

After receiving SSN, I got a job with US company but working remotely from Canada. So my employer deducts Federal deductions (Tax +FICA). However state tax is not deducted as I am working remotely from Canada.

I will not be physically staying in US for the whole of 2022, except few days (at the most 15 days during 2022).

[pk]

@asitamin , in such a case, you are a resident of the USA from the day you were admitted with the GreenCard by the USIS and thus   you need / needed to file your US return on form 1040 (NOT 1040-NR). You are therefore also subject to FBAR and FATCA regulations -- just note however while FBAR threshold remains at US$10,000 the  FATCA ( form 8938 ) is based on your filing status  and tax-home ( domestic  or foreign).   Also because you have a foreign tax home , you can avail yourself of "foreign earned income' exclusion eligibility and/or foreign tax credit ( for taxes paid to Canadian tax authorities) -- you will obviously have to "resource" your remote earnings  to Canada ( where the work is done) -- you may indeed have no US sourced income.

It is not hard to do this , but it may be easier  ( at least for the first year ) to have a tax professional  ( whom is familiar with international taxation) do this for you.  There must be tons of such people in Canada -- lots of Canadians must be working remotely for US entities.

Is there more I can do for you ?

pk

[asitamin]

@pk So, even though I am not physically residing in US, I am required to file 1040?

[pk]

@asitamin , that is right -- as a resident  ( passing the Green Card test), you file form 1040 and are taxed on your world income.

Is there more I can do for you ?

k