TFSA. What forms?

[pdfc]

I am a US citizen that has lived in Canada for 45 years and am now trying to become US tax compliant as I have just learned that I need to do this as a citizen.. I am in the process of filling out all forms for the Streamlined procedure. I have a TFSA that I've owned since the fall of 2009. I have included it on my FBAR's . What other forms do I need to fill out? I plan on closing it out this year.

[JGCA]

TFSA not only had to be FBAR filied but the income was not sheltered this income has to be added to your 1040 every year since 2009

[nelsona]

If you have mutual funds in the TFSA, they ae PFICs whih need to be reported and taxed yearly, just as in your normal investment accounts.

And they are not sheltered in US, so you must pay tax on the income.

[MGeorge]

I was in a similar situation. For the TFSA, I had to file 3520, 3520A, and because I had mutual funds in it, I had to file a 8621 for each fund.
You do have to declare the income generated from the TFSA investments on your 1040, and you can't attribute any Canadian taxes to the TFSA income.
I was lucky because I had some non-registered investements and because the Canadian taxes were much higher than the US tax, the total usable foreign tax credit was enough to wipe our the small TFSA income.

I hope this helps. Do you have mutual funds in your TFSA?

[pdfc]

No, my TFSA is all in GIC. IM told they are not considered a trust if they are Gic's. Is that correct. I had no income in 2009 &. 2010 and the TFSA has only earned $410 so are all of the above forms still necessary? I will be cashing the TFSA in this year.

[nelsona]

Who told you they were not ta trust. Only the firm could tell you this.

[pdfc]

They did tell me they weren't a trust. That would be Scotia Securities.

[nelsona]

Then no PFIC and no 3520. Just income and FBAR.

[pdfc]

Thanks, and the interest earned from the TFSA is entered on line 16 on the 1040?

[nelsona]

Its entered on your schedule B along with all your other bank interest.