You will likely remain Canada‑tax resident and U.S. tax nonresident, with Canada taxing all wages and rents and U.S. federal tax reaching U.S. workdays—but New York may tax the full salary unless Toronto is a real employer office, and every TN reentry is inspected.

(b), (e), and (g)(1)

Temporary entry, as defined in the USMCA, means entry without the intent to establish permanent residence. In order to establish that the alien's entry will be temporary, the alien must demonstrate to the satisfaction of the inspecting immigration officer that his or her work assignment in the United States will end at a predictable time and that he or she will depart upon completion of the assignment. The conforming document provided shall bear the legend 'multiple entry.' An alien may be readmitted to the United States in TN classification for the remainder of the authorized period of TN admission on Form I-94 (see § 1.4), without presentation of the letter or supporting documentation described in paragraph (d)(3) of this section, and without the prescribed fee set forth in 8 CFR 106.2, provided that the original intended professional activities and employer(s) have not changed, and the Form I-94 has not expired.

(d)(3)(ii)

The documentation shall fully affirm: (A) The profession of the applicant under Appendix 2 to Annex 16-A of Chapter 16 of the USMCA; (B) A description of the professional activities, including a brief summary of daily job duties, if appropriate, in which the applicant will engage in for the United States employer/entity; (C) The anticipated length of stay; (D) The educational qualifications or appropriate credentials which demonstrate that the Canadian or Mexican citizen has professional level status; and (E) The arrangements for remuneration for services to be rendered.

(a)(3)

All aliens (including alien crewmen) who are applicants for admission or otherwise seeking admission or readmission to or transit through the United States shall be inspected by immigration officers.

To meet this test, you must be physically present in the United States on at least: 31 days during the current year, and 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting: All the days you were present in the current year, and 1/3 of the days you were present in the first year before the current year, and 1/6 of the days you were present in the second year before the current year.

Regular commuters from Canada or Mexico

Do not count the days on which you commute to work in the United States from your residence in Canada or Mexico if you regularly commute from Canada or Mexico. You are considered to commute regularly if you commute to work in the United States on more than 75% (0.75) of the workdays during your working period. For this purpose, 'commute' means to travel to work and return to your residence within a 24-hour period.

(b)(2)(ii)(A)

Except as provided in paragraph (b)(2)(ii)(B) or (C) of this section, in the case of compensation for labor or personal services performed partly within and partly without the United States by an individual as an employee, the part of such compensation that is attributable to the labor or personal services performed within the United States, and that is therefore included in gross income as income from sources within the United States, is determined on a time basis, as defined in paragraph (b)(2)(ii)(E) of this section.

Articles IV(2) and XV(1)-(2)

Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: (a) he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both States or in neither State, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer (centre of vital interests). Subject to the provisions of Articles XVIII (Pensions and Annuities) and XIX (Government Service), salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: (a) such remuneration does not exceed ten thousand dollars ($10,000) in the currency of that other State; or (b) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in that year and the remuneration is not borne by an employer who is a resident of that other State or by a permanent establishment or a fixed base which the employer has in that other State.

Articles II(2) and XXIV(2)

The existing taxes to which the Convention shall apply are: (a) In the case of Canada, the taxes imposed by the Government of Canada under the Income Tax Act; and (b) In the case of the United States, the Federal income taxes imposed by the Internal Revenue Code. In the case of Canada, subject to the existing provisions of the law of Canada regarding the deduction from tax payable in Canada of tax paid in a territory outside Canada and to any subsequent modification of those provisions—which shall not affect the general principle hereof—(a) income tax paid or accrued to the United States on profits, income or gains arising in the United States, and (b) in the case of an individual, any social security taxes paid to the United States, shall be deducted from any Canadian tax payable in respect of such profits, income or gains.

pages 1-2

However, any allowance claimed for days worked outside New York State must be based upon the performance of services which of necessity, as distinguished from convenience, obligate the employee to out-of-state duties in the service of his employer. In order for an office to be considered a bona fide employer office, the office must meet either: a) the primary factor, or b) at least 4 of the secondary factors and 3 of the other factors.

If you are a nonresident whose primary office is in New York State, your days telecommuting are considered days worked in the state unless your employer has established a bona fide employer office at your telecommuting location. Nonresidents of New York City are not liable for New York City personal income tax.

paragraph 1.1

Residents of Canada are generally taxed on their worldwide income.

Foreign employment income

Report your foreign employment income in Canadian dollars. In general, the foreign currency amount should be converted using the Bank of Canada exchange rate in effect on the day the amount arises. Enter on line 10400 of your return the amount of your foreign employment income (in Canadian dollars) that is not included on a T4 slip.

Completing Form T776; Line 9946

If you received income from renting real estate or other real property, you have to file a statement of income and expenses. Form T776 will help you calculate your rental income and expenses for income tax purposes. This is the amount of your net income or loss for the tax year. Enter the amount from line 9946 on line 12600 of your income tax return.

Foreign tax credit—Line 40500

You may be able to claim the foreign tax credit if you paid foreign income or profit taxes on income you earned outside Canada and reported on your Canadian tax return. Complete Form T2209, Federal Foreign Tax Credits, to calculate your federal foreign tax credit amount. If you lived in a province or territory other than Quebec at the end of the year, complete Form T2036, Provincial or Territorial Foreign Tax Credit, to calculate your provincial or territorial foreign tax credit amount.

Non-resident employers; Opening a payroll program account

If you are an employer who is resident outside of Canada and you do not have a place of business in Canada, you still have the same responsibilities as Canadian employers, regardless of whether the Canadian resident employee carries out the services in Canada or outside Canada. You need to register for a payroll program account if you pay salaries or wages.

Article V

Except as otherwise provided in this Article, an employed person who works in the territory of one of the Contracting States shall, in respect of that work, be subject to the laws of only that Contracting State. Where a person who is normally employed in the territory of one Contracting State and who is covered under its laws in respect of work performed for an employer having a place of business in that territory is sent by that employer to work for the same employer in the territory of the other Contracting State, the person shall be subject to the laws of only the first Contracting State in respect of that work, as if it were performed in the territory of the first Contracting State. The preceding sentence shall apply provided that the period of work in the territory of the other Contracting State is not expected to exceed 60 months.

When To File

If you were an employee and received wages subject to U.S. income tax withholding, file Form 1040-NR by the 15th day of the 4th month after your tax year ends. A return for the 2025 calendar year is due by April 15, 2026. If you didn't receive wages as an employee subject to U.S. income tax withholding, file Form 1040-NR by the 15th day of the 6th month after your tax year ends. A return for the 2025 calendar year is due by June 15, 2026.

Purpose of Form; Penalty for Failure To Provide Required Information

If you take the position that a treaty of the United States overrides or modifies any provision of the Internal Revenue Code and that position reduces (or potentially reduces) your tax, you must generally report certain information on Form 8833 and attach it to Form 1040-NR. If you fail to report the required information, you will be charged a penalty of $1,000 for each failure, unless you show that such failure is due to reasonable cause and not willful neglect.

Even if you met the substantial presence test, you can still be treated as a nonresident of the United States for U.S. tax purposes, within Internal Revenue