Repeat posting. Thank you in advance for any assistance on this matter.
Retired US citizens, aged 66 and 63, residing in Canada. Recently obtained Permanent Resident status.
Wife receiving US Social Security and husband getting US Teachers Retirement pension. All incomes are US sourced. No canadian income.
Annually filing US Fedral taxes jointly and paying US State taxes and US local property taxes. Also owning property in Canada and paying Canadian property taxes. We are Canadian residents but regularly visit our property in US.
We have US bank and Brokerage accounts and Canadian checking and savings accounts.
Do we continue filing US taxes ? Do we have to file Canadian taxes and use US taxes as credits and do we have to declare our US incomes and assets ?
US Canadian Taxes
Moderator: Mark T Serbinski CA CPA
If you are USC, you have to file US tax returns, forever, period.
If you are Canadian residents then you also need to file Canadian returns.
In general taxes paid in one country are tax credits in the other.
Treatment of pension income is different in each country, maybe Nelson will help you out there.
If you are Canadian residents then you also need to file Canadian returns.
In general taxes paid in one country are tax credits in the other.
Treatment of pension income is different in each country, maybe Nelson will help you out there.
I do not understand the comment about repeat posting.....
As US citizens living in Canada, you report all world income of BOTH returns, one for IRS and one for canada. You will file 1040 forever, regardless of where you live.
IN canada you only file while resident, thus you are considered a newcomer in 2009 (read the CRA Newcomers guide). You will start paying Cdn tax on the date you arrived in Canada.
Only your SS is not to be reported in US, per treaty; only in Canada. All other income is reported on 1040.
You should no longer be paying state taxes anymore, as soon as you move. You would likely only have a part-year return this year and that is it.
You will be able to take credit for the US tax you owe, on your Cdn return. The net effect will be paying CDn taxrate on your income.
As US citizens living in Canada, you report all world income of BOTH returns, one for IRS and one for canada. You will file 1040 forever, regardless of where you live.
IN canada you only file while resident, thus you are considered a newcomer in 2009 (read the CRA Newcomers guide). You will start paying Cdn tax on the date you arrived in Canada.
Only your SS is not to be reported in US, per treaty; only in Canada. All other income is reported on 1040.
You should no longer be paying state taxes anymore, as soon as you move. You would likely only have a part-year return this year and that is it.
You will be able to take credit for the US tax you owe, on your Cdn return. The net effect will be paying CDn taxrate on your income.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
US Canadian Taxes
Thank you very much both stewak2 and nelsona for your response.
nelsona, you said "Only your SS is not to be reported in US, per treaty; only in Canada. All other income is reported on 1040"
Did you mean my wife's US Social Security is not reported in the US TAX filing? We only get US Social Security, nothing from Canada.
What is CRA. Is it the US IRS equivalent in Canada? Will the Canadian "IRS" website have info that I am looking for?
Sorry for being very ignorant on these matters and thank you, once again.
nelsona, you said "Only your SS is not to be reported in US, per treaty; only in Canada. All other income is reported on 1040"
Did you mean my wife's US Social Security is not reported in the US TAX filing? We only get US Social Security, nothing from Canada.
What is CRA. Is it the US IRS equivalent in Canada? Will the Canadian "IRS" website have info that I am looking for?
Sorry for being very ignorant on these matters and thank you, once again.
Landed