U.S. Taxes for TN Visa Holders: What You Need to Know

Koen Van Duyse
Apr 2
3 min read

If you’re a Canadian or Mexican citizen working in the U.S. on a TN visa, tax season might feel a little confusing. You’re not alone—many TN professionals are unsure what taxes they owe, what forms they need, or how to avoid double taxation. This post breaks it all down in simple terms.

Who Are TN Visa Holders?

TN visa holders are professionals (like engineers, accountants, or healthcare workers) allowed to work in the U.S. under the USMCA agreement (formerly NAFTA). The visa is valid for up to 3 years and can be renewed. While it’s a non-immigrant visa, TN workers may still owe taxes in the U.S., depending on how long they stay and how much they earn.

Do TN Visa Holders Pay U.S. Taxes?

Yes. If you earn income while working in the U.S., you’re generally required to pay:

• Federal income tax

• State income tax (depending on where you work)

• Social Security and Medicare taxes (FICA), unless exempt

Resident or Nonresident for Tax Purposes?

Your tax filing status depends on whether you meet the Substantial Presence Test. Here’s how it works:

• Count all the days you were physically in the U.S. during the current year.

• Also count 1/3 of the days from the year before, and 1/6 of the days from two years before.

• If the total equals or exceeds 183 days, you’re considered a resident for tax purposes and file Form 1040.

• If not, you’re a nonresident and file Form 1040-NR.

Do You Pay Social Security and Medicare Taxes?

Generally, yes—but there’s an exception for Canadians under the U.S.-Canada Totalization Agreement. If:

• You’re expected to stay in the U.S. for less than 5 years, and

• You’re still contributing to Canada Pension Plan (CPP),

Then you can request an exemption from U.S. Social Security taxes. You’ll need to:

1. Get a Certificate of Coverage from the Canadian government.

2. File Form 8833 with your U.S. tax return.

Mexico also has a totalization agreement, but the eligibility rules differ.

Tax Deductions and Credits

• If you’re a resident for tax purposes, you can usually claim the standard deduction, Child Tax Credit, and other benefits.

• If you’re a nonresident, your deductions are limited. Most can’t take the standard deduction unless you’re from India or meet other specific exceptions.

State Taxes Can Vary

Each state has its own tax rules. Some don’t follow federal residency definitions, so you could be considered a resident for state tax even if you’re a nonresident federally.

Need Help Filing? Here’s What to Send Us

If you’re a TN visa holder and would like help preparing your taxes, here’s a list of items to gather:

Personal Info:

• Name, address, SSN or ITIN

• Visa status and dates of entry to the U.S.

• Passport copy (optional but helpful)

Work Info:

• W-2 forms from U.S. employers

• 1099 forms (if any)

• Job offer letter or TN approval notice

Residency Info:

• Entry/exit dates for the past 3 years (to determine tax residency)

• Certificate of Coverage (if claiming Social Security exemption)

Other:

• Any Canadian or Mexican tax forms

• Details of dependents (if claiming any credits)

• Prior year U.S. tax return (if applicable)

Being on a TN visa doesn’t exempt you from U.S. taxes—but it does mean you need to think carefully about how you’re classified and what exemptions or treaties might apply. Getting this right can save you money and avoid issues down the road.

Need help? Send us your documents or reach out with your questions—we specialize in helping TN professionals file correctly and confidently.