RESPs and US taxes

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.

Moderator: Mark T Serbinski CA CPA

Newdual
Posts: 13
Joined: Tue Jan 17, 2012 10:54 am
Location: Canada

Post by Newdual »

Hence the wink wink nod nod! Yes, migration is the way of all animals, for whatever purposes. Just having a "worry day" about privacy, sovereignty, etc. and feeling sorry for those who are simply collateral damage because of people like me. Guess it hurts to grow up! Thanks so much for your responses and contributions. I know you don't have time to discuss much on here, but we're wondering what your take on Obamacare for the over $200,000 crowd would be? I'm sure it will soon emerge as another topic!
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

I always take the position that anyone making more than me should be taxed at ahigher rate me. I never understand americans who don't follow this principle.

If all did this, there would be free health care in US 50 years ago.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
ND
Posts: 291
Joined: Thu Feb 21, 2013 5:28 pm

Post by ND »

The Treasury Department's Financial Crimes Enforcement Network (FinCEN) clarified that, in determining whether an individual is a U.S. resident for FBAR purposes, the election under which a nonresident alien married to a U.S. citizen can be treated as a resident for tax purposes is disregarded.
MGeorge
Posts: 313
Joined: Fri Jun 22, 2012 9:23 am
Location: Canada

Post by MGeorge »

Regarding a future requirement to report NRA spouses's trust accounts to the IRS.
Couldn't a USC with NRA spouse just file "Head of household"?
The wording in the 1040 instructions state that if you have an NRA spouse and file "head of household", then you are considered "unmarried" for tax purposes. I wonder if this is enough to not report a spouse's trust account (TFSA, RESP).
I will never report anything of my spouse to the IRS except her name after "married filing separately" as required.

I won't worry about it until it appears in the instructions for 3520 - then I probably still won't worry about it.
OverseasAmerican
Posts: 2
Joined: Tue Mar 05, 2013 11:21 am

Post by OverseasAmerican »

This discussion has gotten me pretty nervous. I thought all my trust filings were behind me.

I am USC with NRA spouse. NRA spouse closed TFSA in 2012. TFSA was not in my name and I did not contribute to it. I file married filing separate.

Maybe I am being paranoid here, but I just want to confirm that this is still a FUTURE filing requirement and that I don't have to file 3520A and 3520 for NRA spouse TFSA now for tax year 2012? Worse yet, I hope I don't have to back file old years?

How about for people on this board whose NRA spouses haven't closed TFSA? Is there still time for them to close it by the end of 2013 without having to file foreign trust forms?

By the way -- thanks for this great forum -- it is so helpful!
OverseasAmerican
Posts: 2
Joined: Tue Mar 05, 2013 11:21 am

Post by OverseasAmerican »

How about RRSPs held by NRA spouses for those of us married filing separately? Aren't they technically trusts too? Do we need to start filing Form 8891 (hope I remember the number right) for those too?
gpancio
Posts: 54
Joined: Sat Mar 29, 2014 8:05 am

Post by gpancio »

Wow, so if my wife- not a US citizen, so I file my 1040's as "married, filing separate", opens a TFSA, then I have to file 3520 for it?
Diskdoctor
Posts: 75
Joined: Wed Apr 21, 2010 9:46 am
Location: Winnipeg

Post by Diskdoctor »

I have seen no evidence that a US citizen is required to file anything for a NRA spouse who doesn't file US taxes though Nelsona has alluded to the possibility of this requirement at some future date.

If a law like this does come into effect the US government would basically be requiring its citizens to spy on spouses who are foreign nationals. I might have to ask my wife to renounce her citizenship if it comes to that. It's beyond even the current ridiculousness.
Ottawa123
Posts: 36
Joined: Mon Dec 03, 2012 11:29 am

Post by Ottawa123 »

Interesting post
MGeorge
Posts: 313
Joined: Fri Jun 22, 2012 9:23 am
Location: Canada

Post by MGeorge »

I agree - I haven't seen anything that would require a US citizen to report on the trust accounts of an NRA spouse.
Post Reply