What forms to fill - move recently on TN ?

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karma
Posts: 13
Joined: Tue Mar 03, 2015 9:12 pm

What forms to fill - move recently on TN ?

Post by karma »

Hi there, thanks to all in advance for all the useful info. I am a total noob on taxes and recently moved to Florida on TN permit. The whole idea was for a new experience and not about salary -in fact took a salary cut. Never realized that all these fillings would be such a burden. As days go by I am getting more and more confused.

Would appreciate if someone can give just a list of forms (8938, FBAR, 3520/A etc.) that I need to send based on my situation.

1. Started work on 4th April 2014
2. Before that was working on contract thru an Agency in Canada.
3. 11K in Questrade TFSA - its actually a loss making account. Started with 20K.
4. Have Savings in TD Canada - $36K

Also would appreciate due dates on these? I read somewhere, most are due by March 15th. :(

thanks again! :?
nelsona
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Post by nelsona »

Nothing unusual about your situation; you will filedeaprturereturn for canada as an emigrant, and file full year 1040 reporting all 2014 income, and exempting your Cdn wages on form 2555.

For all other items. please read threads on PFIC, 3520, FBAR, FATCA and 8938.

It's all there.

You need to close your TFSA.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
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Post by nelsona »

If you had started to look into this in 2014, you would have learned that you needed to close TFSA then, now you will have issues in 2015 too.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
karma
Posts: 13
Joined: Tue Mar 03, 2015 9:12 pm

Post by karma »

Thanks. For the TFSA when everyone here recommends to closing it - is it because of the filling/paperwork burden or the tax on any interest earned.

In my situation my TFSA is actually at a loss of close to 50% , would I be still taxed on it. I was hoping to keep it in the account for the long-run as I am very much looking into returning back to Canada by end of this year.

thanks again.
karma
Posts: 13
Joined: Tue Mar 03, 2015 9:12 pm

Post by karma »

And is March15th hard deadline for any of these forms ? appreciate your replies thanks !
nelsona
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Location: Nowhere, man

Post by nelsona »

As I said, all infor on these other forms is available in threads.

TFSAs a re bad for US residents because of BOTH reasons. If you live in canada, the tax can usually be avoided with careful planning, but not the reporting headaches.

Close the TFSA and re-fund it when/if you return to canada. There are plenty of tax-free alternatives in US (Rothm house, etc).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
karma
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Joined: Tue Mar 03, 2015 9:12 pm

Post by karma »

Read this exact verbiage on another forum

"Form 3520 is to report distributions and withdrawals from the trust - if there were no contributions or distributions - that form is not required "

I haven't put in or pulled out anything in my LOSS making TFSA account. I don't have any RRSP investments. Do I still need to file 3520 ? or 3520A.

Getting nervous about the approaching deadline. thanks.
nelsona
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Location: Nowhere, man

Post by nelsona »

That is incorrect.

Where is this misinformation being perpetrated?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
karma
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Joined: Tue Mar 03, 2015 9:12 pm

Post by karma »

Answer # 2
http://www.justanswer.com/tax/8c9vs-tax ... rking.html

Well i haven't made any contribution in past 2 years and its at loss. Do I still report and file?
nelsona
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Post by nelsona »

Your TFSA is a trust and you must report the existence of that trust on form 3520/3520-A.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
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Post by nelsona »

From the instructions of 3520 under "Who must file":

2. You are a U.S. person who, during the current tax
year, is treated as the owner of any part of the assets of a
foreign trust...

Note. You are required to complete Part II even if there have
been no transactions involving the trust during the tax year.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Subaron
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Joined: Sun Mar 22, 2015 2:25 pm

Post by Subaron »

[quote="nelsona"]Nothing unusual about your situation; you will filedeaprturereturn for canada as an emigrant, and file full year 1040 reporting all 2014 income, and exempting your Cdn wages on form 2555.

For all other items. please read threads on PFIC, 3520, FBAR, FATCA and 8938.

It's all there.

You need to close your TFSA.[/quote]


What are the benefits of filing a full year 1040 vs 1040NR (for the time in Canada) and 1040 (for time in US)for first year move taxes on TN status?

The 1040NR would simply be $0 return in terms of dual status, right?
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