This question probably has already been asked but as I'm new to this site and didn't see the topic, here goes
I have dual citizenship US and canadian. Lived all my life in Canada, worked, salary based. Now have rrsp, lira, tfsa and savings accounts. Only just renewed my US passport last year and I was requested to obtain my ssn, for the first time. Now I understand I need to file tax returns to the US. No US income, ever, no intention to live in the US.
I also read I need to file the last seven years to comply?
What are the facts? Where do I start?
Thanks
Dual citizenship
Moderator: Mark T Serbinski CA CPA
Hi There,
I was in the same situation you're in, a few years ago.
I chose to find an accountant, and backfile 6 years of tax returns and 6 years of FBARs.
Now I believe that in most cases, only 3 years of tax returns and 6 years of FBARs "Foreign bank account reports".
I don't want to advise anyone not to comply with US tax laws - but I should bring to your attention many folks find that doing nothing is the best thing. Especially if you've never lived there and was born in Canada. The renewal of your US passport might be a problem though.
My decision to comply was a personal decision, mostly motivated by the possibility of living in the US, and some stock plans by my imployer that required US specific forms that I didn't want to lie on.
"where to start?" You could have an account take care of everything. It is costly in Canada. Or, if you are familiar with income tax and are willing to study what you have to file, read "publication 54" to learn about the offsetting tax credits and exemptions, etc. I have a friend who complies with only a few pages of forms 1040 and 2555 and FBAR. For me, my last year's US tax filing totalled 96 pages (ouch) and I owed $10.
I was in the same situation you're in, a few years ago.
I chose to find an accountant, and backfile 6 years of tax returns and 6 years of FBARs.
Now I believe that in most cases, only 3 years of tax returns and 6 years of FBARs "Foreign bank account reports".
I don't want to advise anyone not to comply with US tax laws - but I should bring to your attention many folks find that doing nothing is the best thing. Especially if you've never lived there and was born in Canada. The renewal of your US passport might be a problem though.
My decision to comply was a personal decision, mostly motivated by the possibility of living in the US, and some stock plans by my imployer that required US specific forms that I didn't want to lie on.
"where to start?" You could have an account take care of everything. It is costly in Canada. Or, if you are familiar with income tax and are willing to study what you have to file, read "publication 54" to learn about the offsetting tax credits and exemptions, etc. I have a friend who complies with only a few pages of forms 1040 and 2555 and FBAR. For me, my last year's US tax filing totalled 96 pages (ouch) and I owed $10.
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MGeorge is neither an accounting nor taxation professional.
MGeorge is neither an accounting nor taxation professional.
[quote="exPenn"]If you lived all your life in Canada, and have no intention of living in the States, why would you want to have a US passport? Just get a Canadian one.[/quote]
i do have a canadian passport when I became a canadian around 20 years old. I was born in the states and my birth place was on my canadian passport. I travel to the states, as I do often since my family still lives there, customs requested that I have my american passport since I was also american. This had become a hassle since 9/11 everytime I crossed. I had no choice but to reinstate my american passport.
i do have a canadian passport when I became a canadian around 20 years old. I was born in the states and my birth place was on my canadian passport. I travel to the states, as I do often since my family still lives there, customs requested that I have my american passport since I was also american. This had become a hassle since 9/11 everytime I crossed. I had no choice but to reinstate my american passport.
[quote="MGeorge"]Hi There,
I was in the same situation you're in, a few years ago.
I chose to find an accountant, and backfile 6 years of tax returns and 6 years of FBARs.
Now I believe that in most cases, only 3 years of tax returns and 6 years of FBARs "Foreign bank account reports".
I don't want to advise anyone not to comply with US tax laws - but I should bring to your attention many folks find that doing nothing is the best thing. Especially if you've never lived there and was born in Canada. The renewal of your US passport might be a problem though.
My decision to comply was a personal decision, mostly motivated by the possibility of living in the US, and some stock plans by my imployer that required US specific forms that I didn't want to lie on.
"where to start?" You could have an account take care of everything. It is costly in Canada. Or, if you are familiar with income tax and are willing to study what you have to file, read "publication 54" to learn about the offsetting tax credits and exemptions, etc. I have a friend who complies with only a few pages of forms 1040 and 2555 and FBAR. For me, my last year's US tax filing totalled 96 pages (ouch) and I owed $10.[/quote]
I heard that customs could stop you at the border if taxes are delinquent. Since I do travel a lot to the states, I don't want any problems. I'll try reading publication 54. Finding an accountant in Quebec, not easy, they all charge huge amounts of money. I was hoping they would do my current year and I could do myself past years? 100 pages? By the way, born in the states, became canadian at age 20, thus the dual citizenship
I was in the same situation you're in, a few years ago.
I chose to find an accountant, and backfile 6 years of tax returns and 6 years of FBARs.
Now I believe that in most cases, only 3 years of tax returns and 6 years of FBARs "Foreign bank account reports".
I don't want to advise anyone not to comply with US tax laws - but I should bring to your attention many folks find that doing nothing is the best thing. Especially if you've never lived there and was born in Canada. The renewal of your US passport might be a problem though.
My decision to comply was a personal decision, mostly motivated by the possibility of living in the US, and some stock plans by my imployer that required US specific forms that I didn't want to lie on.
"where to start?" You could have an account take care of everything. It is costly in Canada. Or, if you are familiar with income tax and are willing to study what you have to file, read "publication 54" to learn about the offsetting tax credits and exemptions, etc. I have a friend who complies with only a few pages of forms 1040 and 2555 and FBAR. For me, my last year's US tax filing totalled 96 pages (ouch) and I owed $10.[/quote]
I heard that customs could stop you at the border if taxes are delinquent. Since I do travel a lot to the states, I don't want any problems. I'll try reading publication 54. Finding an accountant in Quebec, not easy, they all charge huge amounts of money. I was hoping they would do my current year and I could do myself past years? 100 pages? By the way, born in the states, became canadian at age 20, thus the dual citizenship