Serbinski Accounting Firms

thx Nelsona. Just curious - how about other way around. Can a new immigrant to Canada from the US continue to trade stocks in the US within his taxable account even after becoming a non-resident of the US?

Thanks Nelsona for your clarification from CRA point of view. But, how about from IRS side. What do I file? 1040 or 1040 NR or Dual-status Alien? What would be the simplest way to do that? I heard Dual-status is very complicated!

Yes, you report the Actual taxes. Not the withholdings, refunds, or due amounts on filing.

thanks everyone. So, Nelsona, what specifically do you think the problem would be for me to have RRSP while I am in the US. I know TFSA is not recognized by IRS and so reporting is a hassle, but with RRSP, what reporting do I need to make to IRS. Of course I will not be contributing more to it, but,...

Sorry, just a note - off the topic. Not sure how having retirement accounts in several places around the world will be a hassle. According to "Don't put all your eggs in one basket", I would rather have a complicated financial life rather than simpler. People who had simpler finance by put...

My wife's RRSP is also with Questrade. She is happy with them so far and going to stay with them even if we move to the US.

Thanks Nelsona for your reply. Wow, good to see your opinion. My wife just contributed the full limit of her RRSP for the tax year 2016 in Canada. We may move to the US sometime this year, if she gets a job there.

No matter where I move or reside, I will not withdraw money from my retirement accounts such as RRSP or 401-k until my retirement. I will do that only if I face abject poverty. :(

Thanks Nelsona for your reply. Yes, I work for a state university in the US 'remotely' as I live in Canada. I do have H1B permit from them. I go visit them once a year and stay there for couple of weeks. Been doing that for the past 6 years, not sure how long it will continue though. Before immigrat...

I am living in Canada and continue to work full-time for an American employer. I pay US taxes as NR and file Canadian and pay remaining amount to CRA. Not sure why you cannot do what I am doing for the past 6 years.

thanks Nelsona for your replies. I agree with you. But, nonetheless CRA caused an unnecessary homework and headache for me for the past 3 months because of their carelessness. Not sure how long it is going to take to solve this matter.

Hello Chief of Appeals,

After immigrating to Canada in 2010, I continue to work for a state university in the US. I always declare all my income sincerely to CRA and pay full applicable taxes.

For the tax year 2014, a Processing Review (Reference Number - TB1518 8044 XXXX) was conducted on my file as they do every year, (I guess, because of my foreign income). I was asked to show some proof for my retirement contributions in the US. Just like what I did the year before, I submitted my December pay stub and W-2 as the proof.

I have two retirement contributions such as 401(a) and 403(b). CRA accepted my declared amount for 403(b) as it clearly shows up on my W-2, but rejected 401(a) as it is not shown in W-2. The fact is that, my 401(a) account is a retirement contribution that is not reported on the W-2 since it is a mandatory deduction in lieu of Social Security. That is the reason, I included the December pay stub and highlighted the amount shown for both the retirement accounts. CRA simply ignored my note and rejected my deduction. They incorrectly concluded that I used an amount in Column 12b code DD on my W-2 slip as a retirement contribution.

Truth is that, I did not use that amount in Column 12b code DD on my W-2 slip. I am already aware that it is the Cost of employerâ€￾sponsored health coverage which is neither taxable nor taxâ€￾deductible. So, I neither included this amount in Line 104 nor Line 207 of my tax return.

I have explained this in my 2nd response letter submitted online on January 4, 2016 (New Reference Number - TB1600 4132 XXXX). I have also included a confirmation letter from TIAA-CREF, the vendor for my 401(a) account, as a proof for my annual contribution.

I have received no response from CRA yet, instead I was sent a letter on February 20, 2016 reminding me of the total amount owing. As a result, I have no other option but to formally submit my objection and request your help to solve this issue.

If you need additional clarification, please call me at (403)...

Thank You,
Sincerely,
AGRISIVA

Thanks Nelsona for your reply as always. You are awesome. I am copying my dispute text below for comments or as an FYI, if someone else in my position...

My state university does not report Defined Contribution Plan - 401(a) retirement account anywhere on W-2 as it is a mandatory account in lieu of social security. But it does report 403(b) on my W-2 - box 12c-Code E. My question to the experts is that - if it is not reported, can we just avoid repor...

Thanks Nelsona,

Yes, its an eligible retirement account - DCP - 401(a) account. Yes, I was reporting it and deducting it using my RRSP room and sincerely filing RC268 form wherein I specify my Employer contribution as well. I do not have any RRSP account in Canada at all, so I deduct my US contributions against my room, but room never gets filled so it keeps growing.

CRA reviewers agreed with my calculations from 2011 to 2013. Its just 2014, my file went to an officer who didn't care to read my letter and decided not to look at my December pay stub. Instead the officer thought I used an amount in Column 12b code DD on my W-2 slip as a retirement contribution. This amount is the Cost of employerâ€￾sponsored health coverage which is neither taxable nor taxâ€￾deductible. So, I neither included this amount in Line 104 nor Line 207 of my tax return.

So, thx for your opinion Nelsona, I will file my formal objection and fight it. I am 100% sure, it is eligible, but just scared they will go to Collections and ruin my credit history.