Search found 15 matches

by expat61
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: 2718

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.
by expat61
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: 1032

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 ...
by expat61
Sun Jun 16, 2019 8:49 pm
Forum: Canada / United States Tax & Accounting
Topic: Covered expatriate income tax
Replies: 3
Views: 2316

Re: Covered expatriate income tax

Hint : use line 56 from your previous five year form 1040's
by expat61
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: 8693

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.
by expat61
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: 8693

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...
by expat61
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: 8693

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. >...
by expat61
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: 8693

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...
by expat61
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: 8693

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...
by expat61
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: 8693

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...
by expat61
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: 8693

Thanks nelsona. FWIW, I'm headed the other way - expatriating from the USA (long term LPR & covered expatriate) back to Canada (citizen). I'd love a link to any websites that simplifies or clearly explains that process. Most of what you find is basic high level stuff designed to scare people and...
by expat61
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: 8693

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...
by expat61
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: 8693

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 ...
by expat61
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: 8693

(edit) ..
Which would give me a $9K tax refund each year.
by expat61
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: 8693

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...