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If you live in Canada but earned money in the US, you may have to file a 1040NR, the US return for nonresident aliens. The IRS says you file it if you were engaged in a US trade or business, or if you had US income and not all the tax you owed was withheld. US citizens are a different story: they file the regular Form 1040 no matter where they live.
Who has to file a 1040NR from Canada?
The IRS sorts a nonresident’s income into two piles. Income effectively connected with a US trade or business is taxed at graduated rates, the same ones US citizens use, and deductions are allowed. Other US-source income, such as dividends or interest, is taxed at a flat 30%, or a lower treaty rate if you qualify, with no deductions.
So $1,000 of flat-rate income costs $300 before any treaty relief. That flat-rate income goes on Schedule NEC, which travels with the form.
Do you have to file if tax was already taken at the source? Sometimes not.
The instructions say you file when not all the US tax you owe was withheld. You also file if you want a refund of overwithheld tax, or if you want deductions and credits. Picture Lena, a Winnipeg nurse who worked a short US contract and had some tax withheld on her pay. Whether she has to file, or just wants to for a refund, is exactly the question a preparer who handles nonresident returns can answer in one call.
When is the 1040NR due?
| Your situation | Due date for the 2025 return |
|---|---|
| Employee with US wages subject to income tax withholding | April 15, 2026 |
| No wages subject to US income tax withholding | June 15, 2026 |
| Need more time | The IRS has an extension process, so read the instructions’ section on filing late |
| Claiming deductions or credits | File a true and accurate return within 16 months of the due date |
No IRS page with 2026 return dates turned up yet, so check before you plan around them. And if a paid preparer does your return, the IRS says they generally must e-file it.
Are you a nonresident alien at all?
That depends on the substantial presence test, and it catches people who spend long winters south of the border. You count as a US resident for tax if you were in the US at least 31 days this year, and your weighted total reaches 183 days. The weighting is all of this year’s days, a third of last year’s and a sixth of the year before.
The IRS gives one example. Someone there 120 days in each of three years scores 120 plus 40 plus 20, which is 180. That’s under the line. At 125 days a year the same sum reaches 187.5, and you’re over.
The IRS also mentions a closer connection exception for people who pass the count, and it says some days, such as commuting from Canada, don’t count at all. How either applies to you wasn’t confirmed here, and treaty tie-breaker rules are a separate question. Read the IRS page on the test before you assume either way.
What should you gather before you start?
Pull together every US slip you received, such as a W-2 for wages or a 1042-S for other US-source income, plus a record of each day you spent in the US during the last three years. A simple calendar or a list of border crossings from your phone is enough. You’ll also want your Social Security number or ITIN, if you have one, and a copy of last year’s Canadian return, since a cross-border preparer will need to see both sides of your income.
How does US tax show up on your Canadian return?
Canada taxes residents on worldwide income, so the US income still goes on your CRA return. Convert it to Canadian dollars using the Bank of Canada rate on the day it arose, and don’t subtract the US tax from the income. The CRA wants you to claim that tax as a credit instead.
The credit goes on line 40500 through Form T2209, which the CRA describes as the form to calculate the federal foreign tax credit. For US tax, the CRA asks you to attach items such as your W-2 and your US return. If the federal credit is smaller than the foreign tax you paid, you may be able to claim a provincial one too.
To see the Canadian side, run your total income through the income tax calculator. If the US money came from contract work, the self-employed tax calculator adds the CPP on it. The tax credits calculator covers federal credits only, and it doesn’t work out the foreign credit for you.
What mistakes cost people money?
Filing a regular 1040 when you’re a nonresident is the obvious one, since the IRS says residents and nonresidents use different forms. Missing the 16-month window is quieter and worse, because you can lose deductions and credits you were entitled to.
Schedule OI is another trap. You must answer all its questions, and a treaty claim is disclosed there, with the country, the treaty article and the exempt amount. And if you have no Social Security number, the instructions accept an ITIN, which you’ll need to arrange ahead of the deadline.
Our calculators don’t handle US tax at all. They cover Canadian rules only, so treat any US figure as a job for the IRS instructions or a preparer who does cross-border returns.
Where do these figures come from?
The US rules and dates come from the IRS pages on taxation of nonresident aliens, the substantial presence test and the 2025 instructions for Form 1040-NR. The Canadian rules come from Canada Revenue Agency pages on line 12100 (foreign income) and line 40500 (the foreign tax credit). Dates are for the 2025 returns. This site isn’t affiliated with the IRS, the CRA or any government.
Frequently asked questions
What is a 1040NR?
It's the US income tax return for nonresident aliens. The IRS says it's for people engaged in a US trade or business, or with US income that wasn't fully taxed at the source.
Do I file a 1040NR if a US company withheld tax?
Maybe not. The instructions say you file when not all the US tax you owe was withheld. You'd also file to claim a refund or deductions.
What is the deadline for the 2025 1040NR?
April 15, 2026 if you had US wages with withholding or a US office, and June 15, 2026 otherwise. We couldn't find 2026 return dates yet.
How many days in the US make me a resident?
You need 31 days this year and a weighted 183 days: this year's days, a third of last year's and a sixth of the year before.
How do I claim US tax paid on my Canadian return?
Use Form T2209 and enter the result on line 40500. Report the income in Canadian dollars and don't subtract the US tax from it.
- How Canadian income tax works: brackets and credits
How federal and provincial Canadian income tax stack up, what marginal and average rates mean, and how credits and deductions change your bill