Serbinski Accounting Firms

Here's the situation: -Canadian citizen/resident -Former US citizen that renounced... now a non-resident alien -Roth IRA from time spent working in USA... deferral election filed with CRA after returning to Canada... no additional contributions made Questions: 1) When it comes time for withdrawal (a...

I guess the main point is that no Canadian resident needs to have any Medicare premiums deducted from their US social security unless they opt in to Parts B, C, or D. I think the only real relevance of US Medicare to any Canadian resident is for those that got their 40 credits in the US (without any...

Here is my source: http://www.socialsecurity.gov/pubs/10043.html#a0=2 Under Medicare Part B, it says, "Anyone who is eligible for free Medicare hospital insurance (Part A) can enroll in Medicare medical insurance (Part B) by paying a monthly premium." Notice that it says "can" an...

Hmmm... since when is US Medicare mandatory if you worked in the US? My understanding is that Medicare Part A is generally free if you are eligible to collect Social Security (before application of any SS treaty... i.e. ~10 years of work in USA). I believe parts B, C, and D have a cost associated wi...

Does the withholding rate on IRA withdrawals also depend on whether it is "lump sum" or periodic? I always thought that this was 15% withholding regardless of how its withdrawn (unless you're under age 59.5 in which case an additional 10% penalty tax applies). Your comments on US pensions ...

Thank you!!!!

Dalthien, Two thoughts on the 8854: 1) if an RRSP goes in the trust bucket where would an IRA go? The only logical place seems to be "pensions from services performed in the US" so I would have guessed the RRSP would have been similarly a "pension"??? 2) Do you really think they ...

Nelsona/Dalthien, Thank you for your responses. I can see in the 8854 instructions where full year 1040 is explicitly allowed. I very much appreciate it! I'm now taking a closer look at the 8854 and find the instructions are severely lacking especially definitions for Part V (Balance Sheet and Incom...

Hi Nelsona, Wow, I'm a bit (pleasantly) surprised by your answer. I'm curious why a full-year 1040 "may be the only option" for the final return of a former USC??? Most everything I have read seems to indicate the requirement of a dual status 1040NR return. This is the only place I have re...

I have read that when a resident alien moves to Canada and gives up their greencard, they have a choice of (a) filing dual-status 1040/1040NR, or (B) filing full-year return, reporting world income on form 1040. Is this option to use a full-year 1040 also available to a US citizen that renounces the...

This is a very helpful discussion! Thanks! I notice that the Part III Summary asks you to summarize the income from your accounts (interest, dividends, etc.). What about the last one on the list (g) credits? Is this supposed to be the Foreign Tax Credits associated with the income from your accounts...

"very little investment is considered US-sourced if you live in canada (basically only US real estate)" I think dividends on US stocks would also be considered US-sourced for a Cdn resident. (At least that's always been my understanding.) More importantly, I think I see where qweryt is try...

As usual, it looks like you are correct! I just ran a few scenarios with various IRA withdrawal levels and it's pretty much impossible to get the tax on the IRA below ~31%. Do you know if its possible to do a SEPP on your own or does the IRA custodian need to administer it? The reason I ask is that ...

Hi nelsona, Actually, it appears the CRA has reversed its position about the 10% penalty and it is now eligible for the FTC. See the following link: http://www.kpmg.com/Ca/en/IssuesAndInsights/ArticlesPublications/Global-Tax-Adviser/GTA_Uploads/U.S.%20Pension%20Early%20Withdrawal%20Penalty%20Eligibl...

I'm trying to figure out how much tax a Canadian (non-resident alien) would have to pay on an IRA withdrawal. I see there is a treaty rate of 15% for "pension" payments but I'm assuming that is just for periodic withdrawals after the age of 59.5. What would be the US withholding taxes for ...