bank interest taxation
Moderator: Mark T Serbinski CA CPA
bank interest taxation
I know that any bank interest is only taxed either in US or in Canada depending on residency. Let's say I move to US on October 1. My GIC in one of Canadian banks will mature in December and the interest will be payed at maturity. Should I report this interest only to IRS or I have to split it proportionally (like 3/4 and 1/4) and report these portions in my Canada tax return and my US tax return?
Serge
Re: bank interest taxation
If the GIC accrues annually, then you will not be reporting anything in Canada, because the accrual will be after your departure date.
That said, you will need to report the entire accrual for the year on your 1040 or dual-status 1040.
That said, you will need to report the entire accrual for the year on your 1040 or dual-status 1040.
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