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Level 2
April 6, 2022
Question

Totalization Agreement

  • April 6, 2022
  • 1 reply
  • 0 views

Hello,

I am under a TN Visa from Canada and read the below:

"Totalization Agreements are agreements that the United States has with a number of countries that exempt citizens of these countries from U.S. Social Security and Medicare taxes. These agreements prevent citizens of these countries from paying social security taxes in both their home country and the U.S. Since the U.S. has a Totalization Agreement with Canada, Canadian citizens on TN visas do not have to pay Social Security and Medicare taxes, but Mexican citizens are still liable for these taxes."

 

My W-2 has both Social security taxes and Medicare taxes withheld. Does it mean I should not be taxed on those? Please provide some clarifications and what needs to be done.

Many thanks.

    1 reply

    DaveF1006
    Level 15
    April 6, 2022

    Your wife would be exempt if she was filing as a non-resident. Since you are thinking about filing a joint return, she is a US person for tax filing purposes and need to report her Social Security and Medicare taxes without any regard for a refund.

     

    @kav bee 

     

     

     

     

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