Still confused on how to determine residency in retirement

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nelsona
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Re: Still confused on how to determine residency in retirement

Post by nelsona » Wed Apr 10, 2019 2:14 pm

Actually, OHIP requires 153 days AND tax residency, which is primary residential ties. That is the way for all provinces.

So healthcare implies being a resident. It is really healthcare requires residency.
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Gilgamesh
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Re: Still confused on how to determine residency in retirement

Post by Gilgamesh » Wed Apr 10, 2019 2:58 pm

nelsona wrote:
> Actually, OHIP requires 153 days AND tax residency, which is primary
> residential ties. That is the way for all provinces.
>
> So healthcare implies being a resident. It is really healthcare requires
> residency.

I guess I’ll cross that hurdle when I get there, because it still makes no sense to me...residency requires health coverage but health coverage requires residency - seems like an impasse to me.

nelsona
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Re: Still confused on how to determine residency in retirement

Post by nelsona » Wed Apr 10, 2019 4:10 pm

I don't understand what you mean by "residency requires healthcare". Why do you say this? And why would you eschew free healthcare if you were entitled to it.

I don't think the provinces FORCE you to have healthcare, but if they do, it is not "because" you are a resident. You still have to apply, and meet their terms. But to MAINTAIN that healthcare, you must remain resident, and a tax resident at that.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

nelsona
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Re: Still confused on how to determine residency in retirement

Post by nelsona » Wed Apr 10, 2019 4:13 pm

by the way, absolutely nothing that you have talked about hasn't been dealt with here before many times.

I'm quite sure in the week you have been reagistered you haven't read many posts.

You have a few years, happy browsing.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Gilgamesh
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Re: Still confused on how to determine residency in retirement

Post by Gilgamesh » Wed Apr 10, 2019 4:42 pm

I will stay tuned and learn...I tried the search function for this but for some reason I’m nervous that USA might keep claiming me as a tax resident even after I get OHIP.

If so, I’ll start shedding whatever ties I have to USA @ that time until I get Canadian residency.

nelsona
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Re: Still confused on how to determine residency in retirement

Post by nelsona » Wed Apr 10, 2019 5:04 pm

US doesn't really care whether you are a "tax resident" or not, once you are a US citizen. you report all income and that is that. if you move to Canada, they can ask Canada if you are filing a residential return, and will be satisfied. They are happy to let Canada determine this, since Canada is the one that is more interested, for tax and healthcare reasons.

now, he individual states do care, and they have their own rules.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Gilgamesh
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Re: Still confused on how to determine residency in retirement

Post by Gilgamesh » Wed Apr 10, 2019 5:25 pm

My residency will be Florida and as it has no state tax filing I should be fine.

I’m glad Canada can determine the Residency status,...however I’m surprised USA doesn’t care. Aren’t they missing out in getting taxes from us for social security and traditional IRA. In fact as a resident of USA I’d be paying them taxes even for OAC and CPP like it’s SS. This will all be gone once I decide to stay in Canada more than USA and apply for OHIP... I assume as a Canadian resident I’ll be paying those taxes to Canada and get credit for it as I file US return.

Gilgamesh
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Re: Still confused on how to determine residency in retirement

Post by Gilgamesh » Wed Apr 10, 2019 6:42 pm

The tie breakers rules seems to imply I should be fine to be a Canadian resident after age 70 when my wife and I will spend most our times in Canada

‘A person’s center of vital interest is based on family, social, occupational, political, and cultural activities. Membership in professional associations and political parties would be considered ties to one country over another. ‘

All (except one) of our immediate family (siblings) are in Canada. Social network of many cousins and more friends in Canada, neither country has occupational connection, I could register in Canada and start voting there (I do currently vote here in USA), and most cultural activities in Canada.

So, although I’ll have a home in both countries and most of my income comes from Social security and IRA’s, and me having both Medicare and OHIP I should be deemed a Canadian resident due to the ‘center of vital Interest’ leaning to Canada.

nelsona
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Re: Still confused on how to determine residency in retirement

Post by nelsona » Thu Apr 11, 2019 9:49 am

Siblings don't count. DEPENDANTS is what matters.

Again, all been dealt with here before.

Not sure why you would say that IRS won't get your IRA tax, they will get up to 15%, depending on your other income. You still report all world income other than CPP/OAS/SS to IRS.
They will get their share of income tax on US-sourced income
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Gilgamesh
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Re: Still confused on how to determine residency in retirement

Post by Gilgamesh » Thu Apr 11, 2019 1:15 pm

nelsona wrote:
> Siblings don't count. DEPENDANTS is what matters.
>
> Again, all been dealt with here before.
>
> Not sure why you would say that IRS won't get your IRA tax, they will get
> up to 15%, depending on your other income. You still report all world
> income other than CPP/OAS/SS to IRS.
> They will get their share of income tax on US-sourced income

Thanks!...I had the wrong impression of how taxes worked, but I'll keep reading...

I've heard of withholding taxes and in fact having to request for the typical withholding to be changed in certain circumstances. I need to study that part more...I assumed the country of residence taxes everything and I just show the credit to the other country. It sounds like IRA involves this...

Good to know CPP/OAS/SS will be taxed in Canada...thanks!

I'll read up on IRA taxation (I think it's called withholding)...

nelsona
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Re: Still confused on how to determine residency in retirement

Post by nelsona » Thu Apr 11, 2019 1:46 pm

SS is the only US-sourced income that does not get taxed at all by IRS while residing in Canada.
All other world income is subject to US tax.
Foreign tax credit can be applied to foreign income, but not US-sourced income.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

nelsona
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Re: Still confused on how to determine residency in retirement

Post by nelsona » Thu Apr 11, 2019 1:48 pm

You do realize that as a US citizen you still will file a 1040 every year reporting world income. IRS 101. And like now, withholding is just pre-payment of tax, that will be determined on your tax return.

More reading, please.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Gilgamesh
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Re: Still confused on how to determine residency in retirement

Post by Gilgamesh » Thu Apr 11, 2019 1:52 pm

It sounds like there is no withholding for IRA withdrawals for USA citizens...but the following statements are still ambiguous to me as it almost sounds like I could pay IRA withdrawal taxes in Canada (as a USA citizen, Canadian resident) and claim it in the 'foreign tax credit'

" At that time, a 30% withholding tax would be applied to each annual distribution received by a Canadian citizen (reduced to 15% with a W-8BEN on file). For a U.S. citizen, no withholding requirements are necessary."................
Any withdrawals or distributions would be picked up as income for Canadian tax purposes (for Canadian residents) or as income for Canadian and U.S. tax purposes (for U.S. citizens or tax residents). Again, foreign tax credits could be applied to eliminate this double taxation for U.S. citizens.

.................The foreign tax credit is what retirees will rely on, Lachowitz says. Expats who itemize could choose to take the foreign taxes paid as a deduction instead of as a credit. (See IRS Publication 514 for more details.)

My research continues....but extra guidance is always appreciated.

Gilgamesh
Posts: 76
Joined: Tue Apr 02, 2019 5:30 pm

Re: Still confused on how to determine residency in retirement

Post by Gilgamesh » Thu Apr 11, 2019 1:53 pm

nelsona wrote:
> SS is the only US-sourced income that does not get taxed at all by IRS
> while residing in Canada.
> All other world income is subject to US tax.
> Foreign tax credit can be applied to foreign income, but not US-sourced
> income.

Oh!...yes! more reading is needed.

Gilgamesh
Posts: 76
Joined: Tue Apr 02, 2019 5:30 pm

Re: Still confused on how to determine residency in retirement

Post by Gilgamesh » Thu Apr 11, 2019 1:55 pm

nelsona wrote:
> You do realize that as a US citizen you still will file a 1040 every year
> reporting world income. IRS 101. And like now, withholding is just
> pre-payment of tax, that will be determined on your tax return.
>
> More reading, please.

Yes! that thing I know...as a USA citizen I will always have to file taxes...I was telling my wife, as the last one sits in hospice in Canada, one of us will still be filing USA taxes, lol

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