Serbinski Accounting Firms

Patti: I will crunch the numbers when I get a chance. One possibility is the following: Both SS and CPP are increased each year by a Cost of Living Adjustment. For its projections, SS assumes a COLA of about 2.6% per year over the next 10 years. The WEP projection may be assuming that you are receiv...

I have done similar calcualtions for my wife (but haven't covered all the scenarios you list). In her case, in order to maximize her total government pensions, she will be taking CPP (and OAS) at 65 and SS at 66. Even with WEP, this gives her a larger pension than taking either CPP or SS earlier (ev...

If she waits until 65 to take an unreduced CPP, and 66 for an unreduced SS, the WEP will reduce her pension income by about $5K per year. Worth fignting for or not?

Yes. 17 years with SS contributions, and 13 years with 'substantial earnings' as defined for the WEP test.

I made that statement because, never having lived or worked in the US, I was somewhat embarassed to be recieving a 'spousal benefit' from US Social Security that I have done nothing to earn. Even though it will be taxed in Canada in my name, it will go to partially make up for the reduction in my wi...

Because, when you apply for Social Security, one of the questions is what other pensions are you recieving, including pensions from "foreign" countries. Lying about it would eventually get you into trouble. There is a social security treaty between the US and Canada. They may exchange pens...

Right. I should be eligible for a spousal allowance of 1/2 of her SS benefit (which I will give to her). One problem will be the reduction of her SS benefit by appoximately 1/2 of whatever CPP she is receiving, due to the WEP provision. Previous posts have mentioned that some cross-border tax servic...

No. She has no US sourced income until 5 yrs from now when she will begin recieving US Social Security.

My wife renounced her US citizenship in Sept. 2013 (before the price was raised from $450 to a usurious $2,350). We filed her final tax return in June 2014 (full year 1040 plus 8854). After almost a year, she finally received her COLN this month. We have the E-receipt from her final FBAR, and just r...

FYI: If you make a contribution to your RRSP and don't claim a deduction for it on your Canadian taxes, you can apply to CRA (there are some restrictions) to have that contribution refunded to you, but only in the tax year you made the contribution, or the following year.

That is true for your US taxes. But, if you move back to Canada when retired, all of your RRSP withdrawals would be taxed at the same rate as all other income, regardless of whether your had any Canadian tax deduction when it was contributed. The same thing holds true for Canadians who find themselv...

Yes any interest you earn will be tax sheltered within your RRSP, but remember that all the money in your RRSP (including contributions) will be taxed when you withdraw it. Without any offsetting deduction on your Canadian taxes, you are, in essence, taking money that you have already paid tax on, a...

Unfortunately, even if this comes to pass, I don't think it will tempt the majority of USC's in Canada into "coming into compliance". Most dual citizens in Canada are either "accidental Americans", or USC's who came to Canada long ago and stopped (or never started) filing US taxe...

My wife renounced her USC on Sept. 16, 2013. We were planning to file her final return (full year 1040 + 8854) as usual before June 15. However, she has still not received her CLN (current estimates from the local consulate are > 1 year to issue). Should she file now without a CLN (no reason it shou...

Every year my wife (and others in our situation) files a 2555 with her 1040. Line 9 says "List your tax home(s) during your tax year and the date(s) establlished". We have always listed Canada as her tax home, established in 1987 when she moved here, so the 2nd clause is always satisfied. ...