CDN Citizen returning to Canada - Best US Citizenship Option

[llaplante]

I am a Canadian citizen with US GC considering return to Canada. I'm trying to determine best option for US status: US citizen , GC or neither.

I have IRA and anticipate social security benefits. From reading the forums it's my understanding that as either US or GC holder I must file US income tax as Canadian resident. If I renounce or lose GC status then I would not be required to file US tax return.

My concern is how my US immigration status might impact my eligibility for social security and/or IRA withdrawals. Is it possible to receive social security benefits as a Canadian citizen, resident in Canada without either US citizenship or GC?

My inclination is to become dual citizen prior to return to Canada. Upside is this gives me legal status as US citizen but downside is US tax reporting. Just interested in understanding implications of not retaining any US citizen or GC status.

Thanks

[nelsona]

You will get SS if entitled regardless of citizenship, It is strictly a matter of work hostory.

The real issue you face is how to maintain GC if you do not live there, which is very difficult. Filing US tax is only part of it.

So, I would (and will) go for citizenship before leaving US.

[lanman2000]

i was in the precise situation as you last year. I ended up just getting my US citizenship because its hard to retain GC if you end up staying in canada for an extended period of time. I was able to obtain my US citizenship in 5 months from application to ceremony.

Yes the tax reporting will be a pain but I was going to have to do it the first year anyways because it was a partial year in US and partial year in canada and i'm only planning on being in canada for 2 years.

In terms of your question about SS, nelsona got it right. The only thing I would add is that if/when you do return to the US make sure you file correctly to get credit for the year(s) you paid CPP in canada.

[llaplante]

Thanks nelsona and lanman2000.

A little further clarification on my part. I was specifically concerned about receiving and maintaining elegibility for SS when residing in Canada and not having US citizenship or GC. This assumes, of course, that I have no intention of returing to US. I wholeheartedly concur that US citizenship is the way to go if one wants to retain US rights.

I was considering giving up GC or US citizenship to avoid the hassle of filing US tax returns. In retrospect I think its just much 'safer' to get US citizenship. I have hard time believing that US gov would happily pay SS to a non GC , non US citizen living in a foreign country. Certainly would be an ugly surprise to be 70 years old and suddenly have your SS benefits terminated!!

Thanks again.

[nelsona]

SS is earned because of work.

CPP is earned because of work, and is also paid worldwide.

OAS on the other hand is UNearned, just by breathing and is paid worldwide.

So, don't be puzzled that should get SS while in Canada.