TN Visa Tax Advice: What Canadian Nurses Should Know Before Working in the U.S.

Moving to the U.S. as a nurse on a TN Visa is an exciting career step, but it’s completely normal to feel unsure about how taxes will work. From where to file, to how much you’ll take home, tax planning is one of the most frequently asked topics from Canadian nurses.

At Conexus MedStaff, we help nurses prepare for the practical side of working in the U.S., so you can focus on what matters most: your nursing career. While we don’t offer financial or legal advice, we aim to provide you with the clarity you need to take the next step with confidence.

Where Do TN Visa Nurses File Taxes?

U.S. Tax Obligation

As a non-resident (or temporary resident) working in the U.S., you must file a U.S. tax return if you earn income from U.S. sources. In these cases you will need to:

1. File a U.S. federal tax return — Form 1040-NR (Nonresident Alien Income Tax Return), unless you meet the Substantial Presence Test, in which case you file a regular 1040 as a resident for tax purposes.
2. Pay U.S. federal and state income tax on your U.S. earnings, for which your employer, agency or hospital will typically withhold U.S. taxes.

Canadian Tax Obligation

You must also consider whether you remain a Canadian tax resident or become a non-resident for tax purposes. If you keep your residential ties to Canada, e.g., home, spouse/children, bank accounts, provincial health card, driver’s license, you’re considered a factual resident of Canada. In these cases:

• You must file a Canadian tax return and report your worldwide income,
  including what you earned in the U.S.
• You’ll then claim a foreign tax credit for the U.S. taxes you paid,
  so you aren’t double-taxed.

If you cut most ties to Canada, e.g., you moved to the U.S. long-term, closed your Canadian home, gave up provincial health coverage, you might be a non-resident of Canada for tax purposes.

In this case you don’t file a regular Canadian tax return — only report certain Canadian-source income (like rent or investments).

Because your tax residency status can affect everything from what forms you file to where you pay taxes, it’s essential to speak with a cross-border tax expert to determine your specific obligations.

Gross Pay vs Net Pay: What You’ll Really Take Home

When you hear a U.S. wage offer, for example, $55 USD per hour, it’s natural to wonder what that actually looks like after taxes and deductions.

Your gross pay is the total amount you earn before any deductions are made. But your net pay (the amount you take home) will be affected by several mandatory deductions, including:

• Federal income tax: Based on your income bracket, this is withheld by the U.S. government.
• State income tax: This varies depending on the state you’re working in. Some states, like Texas and Florida, have no state income tax, while others do.
• Social Security tax: This is typically 6.2% of your gross income.
• Medicare tax: Usually 1.45% of your gross income.
• Optional deductions: These may include health insurance premiums or retirement contributions, depending on your employer benefits.

These deductions are automatically withheld from your paycheck. Your final take-home pay will depend on your location, marital status and any additional withholdings.

Example: Estimating Take-Home Pay on $55 USD/hour

Let’s say you’re working 36 hours per week at $55 USD/hour. That adds up to about $8,580 USD in gross monthly income.

After subtracting estimated taxes and deductions, including federal income tax, state tax (if applicable), Social Security and Medicare your net monthly pay might be around $6,435 USD.

If the current exchange rate is approximately 1.35, that could equal around $8,680 CAD per month, though actual amounts will vary based on location and your personal tax situation.

This is a simplified example to give you a general idea. Your actual take-home pay will depend on factors like where you live and how you file your taxes.

Currency Exchange and Cross-Border Banking

Many Canadian nurses working in the U.S. continue to manage finances in both countries. Here are a few practical things to consider:

• Exchange rate fluctuations can impact your savings when converting USD to CAD or vice versa.
• Cross-border bank accounts offered by some Canadian banks (like RBC or TD) can help make transferring money between countries easier and faster.
• If you send money to Canada or keep accounts there, be aware of any reporting requirements and how foreign income is treated under Canadian tax law.

How Conexus Supports You

Taxes can feel complex, but you won’t be facing them alone. While we don’t provide formal tax or legal advice, the Conexus MedStaff team will:

• Explain how your U.S. pay is structured
• Help you understand deductions and what to expect on your paycheck
• Guide you to trusted resources and tax professionals if needed
• Support you with cross-border banking tips and relocation guidance

Our goal is to make your transition to nursing in the U.S. as smooth as possible, both professionally and financially.

Final Takeaways

• Your tax obligations depend on your residency status and how long you live or work in the U.S.
• Your net income is lower than your gross wage, but many TN nurses find their take-home pay is still strong, especially after converting to Canadian dollars.
• Cross-border banking and exchange rates require planning but are manageable with the right tools.
• Conexus MedStaff supports you every step of the way, helping you understand your earning potential and responsibilities before you move.

Still have questions about life as a TN Visa nurse in the U.S.? Contact the Conexus team because we’re here to help you take the next steps with clarity and confidence.