Search found 15 matches
- Thu Mar 04, 2021 10:08 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Is a PEO the only legitimate option for remote Canadian workers of US firms?
- Replies: 7
- Views: 2768
Re: Is a PEO the only legitimate option for remote Canadian workers of US firms?
I think you answered your own question in the last two sentences of your post.
- Thu Mar 04, 2021 9:50 pm
- Forum: Canada / United States Tax & Accounting
- Topic: US exit tax question about covered expatriate criteria
- Replies: 1
- Views: 1043
Re: US exit tax question about covered expatriate criteria
>I'm thinking about moving back in the medium term - probably after hitting the eight year mark on my green card - The exit tax only applies to long term permanent residents. Which means eight tax years out of the last 15. So you might want to cut things a bit short of eight year? > 1) For the five ...
- Sun Jun 16, 2019 8:49 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Covered expatriate income tax
- Replies: 3
- Views: 2368
Re: Covered expatriate income tax
Hint : use line 56 from your previous five year form 1040's
- Mon Nov 12, 2018 9:26 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Treatment of DB pension plan and 401K on 1040NR for Covered
- Replies: 26
- Views: 8791
Re: Treatment of DB pension plan and 401K on 1040NR for Covered
Never mind. If that's your only CDN income and you take it in small bites each year, little or no CDN tax.
Doh.
Doh.
- Mon Nov 12, 2018 8:46 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Treatment of DB pension plan and 401K on 1040NR for Covered
- Replies: 26
- Views: 8791
Re: Treatment of DB pension plan and 401K on 1040NR for Covered
Interesting! Doesn't the CRA take a bite too?
- Mon Nov 12, 2018 11:40 am
- Forum: Canada / United States Tax & Accounting
- Topic: Treatment of DB pension plan and 401K on 1040NR for Covered
- Replies: 26
- Views: 8791
Re: Treatment of DB pension plan and 401K on 1040NR for Covered
nelsona wrote: > Even though the RRSP is mostly non-taxable? From what I've been told by my international tax attorney that an RRSP balance is treated just like an IRA if you are a covered expatriate. You have to include the total amount on your final tax return as income, which will of course be at...
- Sun Nov 11, 2018 9:43 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Treatment of DB pension plan and 401K on 1040NR for Covered
- Replies: 26
- Views: 8791
Re: Treatment of DB pension plan and 401K on 1040NR for Covered
nelsona wrote: > I presume you trigger this on net worth, which has a pretty low threshold. I live in a "community property" state - so my net worth is split 50:50 with my wife. Effectively giving us 2x the threshold a single person would be entitled to. And that's still a low threshold. >...
- Sun Nov 11, 2018 12:58 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Treatment of DB pension plan and 401K on 1040NR for Covered
- Replies: 26
- Views: 8791
Re: Treatment of DB pension plan and 401K on 1040NR for Covered
thanks nelsona FWIW, I'm not relinquishing for financial reasons, other than the huge cost of my being divorced if I don't get my wife "home" soon. :) The US will revoke my LPR status the next time we cross the border when they figure out we don't live in the USA anymore. And that triggers...
- Sun Nov 11, 2018 12:30 am
- Forum: Canada / United States Tax & Accounting
- Topic: Treatment of DB pension plan and 401K on 1040NR for Covered
- Replies: 26
- Views: 8791
Re: Treatment of DB pension plan and 401K on 1040NR for Covered
Per the title of the thread, I'm talking about a USA DB pension plan and 401K. I'm not sure if that's what you mean by "trust income"? Regardless, the rules are brutally clear. If you expatriate as a "high net worth" individual as defined by the IRS (or don't have clean tax retur...
- Sat Nov 10, 2018 11:43 am
- Forum: Canada / United States Tax & Accounting
- Topic: Treatment of DB pension plan and 401K on 1040NR for Covered
- Replies: 26
- Views: 8791
Re:
nelsona wrote: > That is how I understand it. Once expatriated, the treaty overrides these punitive measures. Keep meaning to come back and correct this. I did a bunch more searching and asked this question of the international tax lawyer I work with. My understanding was wrong. Once you are determi...
- Thu May 10, 2018 8:57 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Treatment of DB pension plan and 401K on 1040NR for Covered
- Replies: 26
- Views: 8791
- Wed May 09, 2018 11:25 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Treatment of DB pension plan and 401K on 1040NR for Covered
- Replies: 26
- Views: 8791
That makes sense to me too. Thank you. Summary : if you send a W-8CE to your DB pension plan and 401K administrators (within 30 days of expatriation), they withhold 30% at source (regardless of any treaty rates) and you file a 1040NR each year to get the treaty rate (15% if Canada) applied - resulti...
- Wed May 09, 2018 7:06 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Treatment of DB pension plan and 401K on 1040NR for Covered
- Replies: 26
- Views: 8791
nelsona : Thanks for that answer but now I'm confused. I thought being a covered expatriate meant an automatic 30% withholding (not eligible to be reduced by treaty) and a 30% tax on all NEC income (i.e. everything declared on page 4). If it only means 30% withholding and everything else is treated ...
- Tue May 08, 2018 10:57 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Treatment of DB pension plan and 401K on 1040NR for Covered
- Replies: 26
- Views: 8791
- Tue May 08, 2018 10:54 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Treatment of DB pension plan and 401K on 1040NR for Covered
- Replies: 26
- Views: 8791
Treatment of DB pension plan and 401K on 1040NR for Covered
I'm going to be a covered expatriate. How will the IRS tax my US monthly DB pension plan payments and 401K withdrawals after I pay the exit tax and expatriate to a tax treaty country? I understand that my monthly DB pension plan payments and 401K withdrawals will be subject to a 30% withholding at s...