This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.
I'm a U.S. citizen and will be moving to Canada to establish permanent residency. From a tax, rrsp or immigration point of view, is there a certain time of the year that is most beneficial to make the move?
You will not be able to participate in RRSP until your second year.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
nelsona is referring to the fact that you will pay US taxes on your world-wide income for the whole year, but Canadian taxes only on your world-wide income from the date you establish residency. You can use tax credits in one country for the taxes you must pay to the other, which essentially means you will pay the higher country's tax in net. Canada is almost always higher, so nelsona is suggesting you pile as much income into the part of the year before you move as you can, as Canada will not tax that income.
Also - consider converting any IRA you may have, to a Roth IRA, and do that BEFORE moving to Canada. When you retire, the Roth IRA will normally allow tax free withdrawals in both countries for life. You MUST NOT contribute to it while a Canadian resident, or you destroy this feature.
Thank you for that explanation and advise. It's much appreciated. If you feel compelled to throw out any other bits of helpful advise, please feel free. lol