US Citizen planning to move to Canada

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.

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perrickd
Posts: 2
Joined: Mon May 13, 2019 9:36 pm

US Citizen planning to move to Canada

Post by perrickd » Mon May 13, 2019 9:47 pm

Hello,

I am a US Citizen planning to move to Canada and eventually getting married to my gf (Canadian Citizen). Does anyone have any advice or tips on what to expect regarding taxes on the following topics:

Purchasing a house together (is it taxed at all?)
FBAR - Is it difficult to file? Does it cost money every year to file?
When we file taxes, does my wife have to file a US tax? (Even if she doesn't have any association to the US other than me?)
I understand that I will have to file a US taxes and Canadian taxes. Is there anything I need to avoid? (Do's and Don'ts) For example, I read that I should not put money in to a Tax Free Savings Account because the IRS views it as an investment account. Are there any other tips anyone may have?

Thank you for the help!

stewak2
Posts: 98
Joined: Mon Sep 18, 2006 2:47 pm

Re: US Citizen planning to move to Canada

Post by stewak2 » Tue May 14, 2019 10:57 am

Your Canadian wife doesn't need to file a US return unless you chose to file a joint return. If you file MFS she doesn't need to file a US return.
FBAR is easy. It can be done online now ( Google it ).
Don't have a TFSA, the pain of filing a 3520A generally isn't worth it.
If you have children, put any RESP in your wife's name, only, so you don't need to report on it.
RRSPs - assuming you will be living and working in Canada, if you make enough that it would matter in US ( $103,900 ) you can only deduct contributions to an employer-run plan, not a personal plan. You need to report the RRSP in FBAR. Tax on plan income can now be deferred without filing form 8891.
Capital gains on personal residence - not taxable in Canada, taxable above $250K ( $500k if married ) in US, so beware of that in real estate transactions.
If you've worked long enough in US ( 40 quarters ) to qualify for US Social Security, your Social Security will be reduced by Windfall Elimination Provision based on your Canadian CPP, up to 50% of your CPP amount may be deducted from US SS. However your wife will be entitled to half your US SS amount when she reaches full SS retirement age. You can collect US SS while lving in Canada.
if you have a 401K, you can keep it, and defer taxation on income on it, but you will likely need to find a broker that is OK with having a Canadian residency address for the account.

perrickd
Posts: 2
Joined: Mon May 13, 2019 9:36 pm

Re: US Citizen planning to move to Canada

Post by perrickd » Thu May 16, 2019 3:40 pm

Thank you so much !! This is so helpful. I appreciate it!

Beloa00
Posts: 3
Joined: Sun Feb 10, 2019 4:29 pm

Re: US Citizen planning to move to Canada

Post by Beloa00 » Sun Jul 07, 2019 12:10 am

"I am a US Citizen planning to move to Canada and eventually getting married to my gf (Canadian Citizen)." - How are you going to move to Canada without getting PR status? Are you dual citizen?

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