Search found 29 matches

by pokka
Mon Mar 25, 2024 10:36 pm
Forum: Canada / United States Tax & Accounting
Topic: US dividend stocks in TFSA
Replies: 4
Views: 145

Re: US dividend stocks in TFSA

Thank you nelsona, much appreciated! I now understand that US qualified dividends (of which I get a decent amount) should be treated as US sourced. Unfortunately (or fortunately) I am in this high tax bracket. So my qualified dividends are taxed at 15% by the US. So to summarize my understanding, I ...
by pokka
Mon Mar 25, 2024 10:35 pm
Forum: Canada / United States Tax & Accounting
Topic: US dividend stocks in TFSA
Replies: 4
Views: 145

Re: US dividend stocks in TFSA

Thank you nelsona, much appreciated! I now understand that US qualified dividends (of which I get a decent amount) should be treated as US sourced. Unfortunately (or fortunately) I am in this high tax bracket. So my qualified dividends are taxed at 15% by the US. So to summarize my understanding, I ...
by pokka
Mon Mar 11, 2024 3:26 pm
Forum: Canada / United States Tax & Accounting
Topic: US dividend stocks in TFSA
Replies: 4
Views: 145

US dividend stocks in TFSA

I am a US citizen in canada, and am in late stages of planning to start a TFSA ( and not file 3520, and only hold non-PFICs in it). As I understand it, the income from that TFSA is taxable by the US but not by Canada. I have quite a bit of nonregistered stock / interest income that will generate som...
by pokka
Sat Sep 30, 2023 10:21 pm
Forum: Canada / United States Tax & Accounting
Topic: dividend taxation
Replies: 4
Views: 1000

Re: dividend taxation

Thanks nelsona!

If anyone has an independent confirmation of my 3 formulas (or have their own formulas), I would be glad to hear it!
by pokka
Wed Sep 27, 2023 3:45 pm
Forum: Canada / United States Tax & Accounting
Topic: Calculating Canadian Dividend Tax Credit for Tax Paid on Form 1116
Replies: 2
Views: 1628

Re: Calculating Canadian Dividend Tax Credit for Tax Paid on Form 1116

I think what matters here is the *marginal* tax rate for the return, not the *average* tax rate - that is the amount of extra tax that you are paying for this dividend. Maybe the marginal tax rate is more than the 21.5% credit you are getting?
by pokka
Wed Sep 27, 2023 3:41 pm
Forum: Canada / United States Tax & Accounting
Topic: dividend taxation
Replies: 4
Views: 1000

dividend taxation

Hi All, I would be grateful for some guidance on taxation of dividends. I think something like this could be helpful to many people in a similar situation as they decide where to invest. I am a US citizen, resident of Canada. I avoid Canadian ETFs because of PFIC rules. Here is my rough approximatio...
by pokka
Tue Apr 18, 2023 10:42 am
Forum: Canada / United States Tax & Accounting
Topic: Canada resident, US person - T4 income vs US wages - subtracting pension contributions
Replies: 4
Views: 916

Re: Canada resident, US person - T4 income vs US wages - subtracting pension contributions

Ah, thanks so much!

I guess it will make a difference if I ever live in the US and take distributions from my Canadian pension then. Then I will primarily be paying tax to the US, and having some US-tax-free income would be nice.
by pokka
Mon Apr 17, 2023 1:04 pm
Forum: Canada / United States Tax & Accounting
Topic: Canada resident, US person - T4 income vs US wages - subtracting pension contributions
Replies: 4
Views: 916

Canada resident, US person - T4 income vs US wages - subtracting pension contributions

Hi! I am a US person, living in Canada. I get at T4 from my Canadian employer with a Registered Pension Plan. The income there shows as X. I contributed Y to my RPP. So for my canadian taxes, I get taxed on X - Y. On my US taxes, when they ask for wages, should I write X or X-Y? I used to think it w...
by pokka
Tue Aug 16, 2022 11:03 pm
Forum: Canada / United States Tax & Accounting
Topic: Capital gain from selling principal residence and foreign tax credit
Replies: 10
Views: 2859

Re: Capital gain from selling principal residence and foreign tax credit

Line 3e of form 1116 is "gross income from all sources". If I had a capital gain of $X from the sale of my principal residence (and X < 500K, and I qualify for the exemption), does this $X get counted in Line 3e? My understanding of the exemption from the IRS page is that this $X does not ...
by pokka
Sun Jul 17, 2022 8:38 pm
Forum: Canada / United States Tax & Accounting
Topic: I Bonds at TreasuryDirect
Replies: 23
Views: 13597

Re: I Bonds at TreasuryDirect

Thanks so much!
It makes it less attractive for me of course, but maybe still worth thinking about.
by pokka
Sun Jul 17, 2022 8:05 am
Forum: Canada / United States Tax & Accounting
Topic: I Bonds at TreasuryDirect
Replies: 23
Views: 13597

Re: I Bonds at TreasuryDirect

Thanks!

And do I pay tax on the growth annually or can I just pay when it matures in 30 years or when I cash it out?
by pokka
Sat Jul 16, 2022 4:50 pm
Forum: Canada / United States Tax & Accounting
Topic: I Bonds at TreasuryDirect
Replies: 23
Views: 13597

Re: I Bonds at TreasuryDirect

Does anyone know how Canadian taxation of I bonds works for US citizens living in Canada? I have been thinking about buying some, and they seem great from just a pure US point of view.
Thanks!
by pokka
Mon Apr 18, 2022 10:30 pm
Forum: Canada / United States Tax & Accounting
Topic: irs underpayment penalty in the year of moving to Canada from the US
Replies: 2
Views: 1004

Re: irs underpayment penalty in the year of moving to Canada from the US

Yes, you are right, my move was in July. I understand your idea about FEIE, I will try it out and see, thanks so much! I heard that FEIE is better for countries with low tax rates ... and this is consistent with your suggestion for me since half-year-income in Canada is indeed a low tax rate situati...
by pokka
Mon Apr 18, 2022 5:37 pm
Forum: Canada / United States Tax & Accounting
Topic: irs underpayment penalty in the year of moving to Canada from the US
Replies: 2
Views: 1004

irs underpayment penalty in the year of moving to Canada from the US

Hi all, I moved to Canada from the US in the middle of 2021. From my preliminary calculations, it seems like I will owe an underpayment penalty to the IRS (and will get a massive refund from the CRA). Is this typical? I seem to be in a much lower tax bracket in Canada for this year because of only t...
by pokka
Fri Mar 11, 2022 10:19 pm
Forum: Canada / United States Tax & Accounting
Topic: 1099-B in the year of transfer of stocks from US to Canada
Replies: 4
Views: 1410

Re: 1099-B in the year of transfer of stocks from US to Canada

Many thanks!

(On the purchase date .. for me I guess that is the day of moving from the US to Canada for the stocks that I transferred).


Would any of you be willing to share a spreadsheet template (or at least the column names :) ) that they use for keeping track of their stocks?