Taxes explained from just a smart nurse friend
—not a
“What are nurses actually confused or stressed about when it comes to taxes?”
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boring tax document
A travel nurse tax series (for Canadian-to-American travel nurses)
Presenting
Welcome! Thank you for joining us for a not-so-quick but relatively painless tax jam session!
Here is what we did, I compiled a list of repeatedly asked questions from our facebook community (the Canadian Travel Nurses to the U.S.A.) and I forwarded the list onto our accountants for the group.*
They responded accurately, but taxes can be pretty dry so I went ahead an organized them into a 6-part series. I hope you enjoy the way the information is presented.
Without further ado, I present the ULTIMATE Canadian to American travel nurse tax guide.
*If you need an accountant, check out our list with details HERE
Important Notice
This FAQ is provided for general educational purposes only and does not constitute tax advice. Tax outcomes depend on individual facts, residency status, treaty positions, and elections. Filing requirements can vary significantly between individuals.
It is strongly recommended consulting a qualified cross‑border tax professional before filing to ensure compliance with both IRS and CRA regulations.
Section 1: The Basics
Before anything else, most Canadian travel nurses hit the same wall of questions:
Do I file in the U.S.?
Do I file in Canada?
Will I be taxed twice?
What even is a W-2?
Let’s clear this up properly—because this is where a lot of confusion (and bad advice) starts.
Short answer: yes.
If you physically worked in the United States and earned income, you are required to file a U.S. tax return.
As Hasib Naziri puts it:
"If you earn income and physically work in the U.S., you need to file."
Karan Narang reinforces this, noting that even short-term work in the U.S. creates a filing obligation.
What this looks like in real life:
FYI... this means multiple states = multiple (state) filings
For more information about who needs to file a U.S. tax return and the minimum amounts required before you must pay the U.S. taxes, see the IRS factsheet here: http://www.irs.gov/newsroom/who-needs-to-file-a-tax-return
If you physically worked in the United States and earned income, you are required to file a U.S. tax return.
As Hasib Naziri puts it:
"If you earn income and physically work in the U.S., you need to file."
Karan Narang reinforces this, noting that even short-term work in the U.S. creates a filing obligation.
What this looks like in real life:
- You’ll typically file a non-resident return (Form 1040-NR)
- You may also need to file state tax returns for every state you worked in
FYI... this means multiple states = multiple (state) filings
For more information about who needs to file a U.S. tax return and the minimum amounts required before you must pay the U.S. taxes, see the IRS factsheet here: http://www.irs.gov/newsroom/who-needs-to-file-a-tax-return
Also yes—in most cases.
This is where things start to feel confusing.
Canada doesn’t care where you earned your income.
It cares where you live (your residency).
The United States tax system tends to focus more on where you made/earned your money.
As you can imagine, having a treaty between two countries with different tax systems is no picnic. This is a big reason I tell basically everyone (unless they were an accountant in another life) to hire a cross-border accountant versus doing it themselves.
As both accountants explain:
Which means:
You must report your worldwide income to Canada
—including your U.S. earnings.
Karan specifically emphasizes that the CRA expects full reporting, and that information is shared between countries so U.S. income cannot be omitted.
Likewise, continue to claim all Canadian federal and provincial/territorial deductions, non-refundable tax credits, refundable tax credits, GST/HST credit and any other credits you qualify to receive.
For more information on who needs to file a Canadian tax return, see the CRA’s website with every possible scenario here (and find which scenario applies to your situation): http://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/who-should-file-tax.html
This is where things start to feel confusing.
Canada doesn’t care where you earned your income.
It cares where you live (your residency).
The United States tax system tends to focus more on where you made/earned your money.
As you can imagine, having a treaty between two countries with different tax systems is no picnic. This is a big reason I tell basically everyone (unless they were an accountant in another life) to hire a cross-border accountant versus doing it themselves.
As both accountants explain:
- If you maintain ties to Canada (home, family, banking, etc.)
- You’re likely considered a Factual Canadian tax resident
Which means:
You must report your worldwide income to Canada
—including your U.S. earnings.
Karan specifically emphasizes that the CRA expects full reporting, and that information is shared between countries so U.S. income cannot be omitted.
Likewise, continue to claim all Canadian federal and provincial/territorial deductions, non-refundable tax credits, refundable tax credits, GST/HST credit and any other credits you qualify to receive.
For more information on who needs to file a Canadian tax return, see the CRA’s website with every possible scenario here (and find which scenario applies to your situation): http://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/who-should-file-tax.html
Do I Need to File a U.S. Tax Return?
Do I Still Need to File in Canada?
Yes.
And this is the moment most nurses go:
“So I’m getting taxed twice?”
Well, thankfully no, not quite...
And this is the moment most nurses go:
“So I’m getting taxed twice?”
Well, thankfully no, not quite...
Wait… So I File in Both Countries?
Will I Be Double Taxed?
Short answer: no—but it can feel like it.
Both Hasib Naziri and Karan Narang point to the same thing:
The Canada–U.S. tax treaty is designed to prevent double taxation.
Here’s how it works in simple terms:
Both Hasib Naziri and Karan Narang point to the same thing:
The Canada–U.S. tax treaty is designed to prevent double taxation.
Here’s how it works in simple terms:
- Watch annually for the tax filing deadlines (often both in April)
- Reach out to an accountant that can file for both countries (if you want to read more about accountants we recommend, see HERE)
- You pay taxes in the U.S. first
- Then you report that same income in Canada
- Canada gives you a foreign tax credit for what you already paid
The credit is limited.
If Canadian taxes are higher (which they often are), you’ll owe the difference to the CRA.
Real-world translation:
You’re not being taxed twice… You’re being taxed up to Canadian rates
If Canadian taxes are higher (which they often are), you’ll owe the difference to the CRA.
Real-world translation:
You’re not being taxed twice… You’re being taxed up to Canadian rates
But, here's the part nurses don't expect...
What Is a W-2?
Think of a W-2 as:
The U.S. version of a Canadian T4
As both accountants explain, your W-2 shows:
You’ll receive it around the end of January, and you’ll need it to file your U.S. taxes.
It is critical you look over and review your W-2 for any errors. As Karan points out, "Lenders, the CRA, and the IRS all rely heavily on this form, making accuracy critical."
If you worked in multiple states, it may also show a breakdown of income by state.
Note: You do not want to claim excempt on any initial paperwork (W-4) when it comes to taxes and you will pay into social security and medicare but those amounts will be credited towards your Canadian Federal taxes.
The U.S. version of a Canadian T4
As both accountants explain, your W-2 shows:
- Total wages earned
- Federal (and sometimes state) taxes withheld
- Social Security and Medicare contributions
You’ll receive it around the end of January, and you’ll need it to file your U.S. taxes.
It is critical you look over and review your W-2 for any errors. As Karan points out, "Lenders, the CRA, and the IRS all rely heavily on this form, making accuracy critical."
If you worked in multiple states, it may also show a breakdown of income by state.
Note: You do not want to claim excempt on any initial paperwork (W-4) when it comes to taxes and you will pay into social security and medicare but those amounts will be credited towards your Canadian Federal taxes.
One Quick Thing to Watch...
Your W-2 should only include taxable income.
If your stipends are structured properly:
So, what if they do?
That’s something to fix right away with your agency!
If your stipends are structured properly:
- They typically should not appear as taxable wages
That’s something to fix right away with your agency!
Bottom Line
Here’s the simplified version:
And once you understand that foundation, everything else starts to make a lot more sense.
- Yes, you file in the U.S.
- Yes, you usually still file in Canada
- No, you’re not technically double taxed
- But yes—you may still owe Canada (becaue our tax rates are higher since our health insurance/coverage is included in our taxes)
- And remember to check your W2 (and any applicable T4s if you maintain a job in Canada) to ensure accuracy
- Don't try to file exempt from U.S. taxes (on your W-4 and you will pay Social Security and Medicare but those will all count towards your Canadian Federal taxes.
- Finally, don't get scared about all this talk about 'residency' — A lot of people confuse taxes with immigration here. Being a resident is for 'tax purposes' specifically, it does not revoke your citizenship (although it can impact things like your auto insurance and provincial health coverage).
And once you understand that foundation, everything else starts to make a lot more sense.
