Possible Claim to US Citizenship - Tax Implications

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.

Moderator: Mark T Serbinski CA CPA

mixed85
Posts: 7
Joined: Tue Nov 08, 2011 3:58 pm

Post by mixed85 »

Thanks for your help guys. What exactly do i need to backfile three years, will my old tax returns be sufficient? or am i required to get all my T4 slips? My tax package is not very complicated at all. Thanks again.
nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

IRS doesnot want any reciepts et when you file.

You'll need to convert all income to USD and report on corresponding 1040 lines, and then use whatever deductions, credits, and exemptions you are entitled to to reduce your IRS tax to ZERO.

Then you will also file 8891 for all yoru RRSPs, and FBAR for alll your fiancial accounts. For 2010 you will have to report any mutual funds and cdn stocks you hold as required by PFIC rules. This may result in 'prepaying' some US tax.
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
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Your other choice of course is to renounce your US citZIenship.
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
mixed85
Posts: 7
Joined: Tue Nov 08, 2011 3:58 pm

Post by mixed85 »

Renouncing citizenship is not an option for me. Any idea how much filing three years of returns will cost me with a competent cross-border tax professional? For these past three years i've only had one savings account and a TFSA. No other investments whatsoever. Thanks!
nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Probably $1500 for one 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
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