We moved to the US this past summer (mid-July). Worked 195 days in Canada. 2 things - looking for a good accountant to handle my taxes both here in Illinois and in Canada for the 2005 tax year.
Also - need to know the tax implications of withdrawing all the funds from my RRSP at this point. Need access to this money for personal reasons. When CRA calculates how much tax I will pay on the RRSP $$, will they calculate my taxation rate based on only my CDN income or on income earned in both countries? If the former, then the tax hit may not be that bad.
RRSP withdrawl question
Moderator: Mark T Serbinski CA CPA
As a Cdn non-resident, your Cdn tax on your RRSP withdrawal will be a flat 25%. It won't be reported on your final Cdn tax return.
Your US tax would be based on the triggered cap gains from the withdrawl, plus any interest/dividends/cap gains distributions your account earned since arrival in US. it would be added to the income reported on your 1040.
There are some other threads on how US income is calculated for RRSP withdrawals, as well as how your first-year US taxes are determined.
<i>nelsona non grata... and non pro</i>
Your US tax would be based on the triggered cap gains from the withdrawl, plus any interest/dividends/cap gains distributions your account earned since arrival in US. it would be added to the income reported on your 1040.
There are some other threads on how US income is calculated for RRSP withdrawals, as well as how your first-year US taxes are determined.
<i>nelsona non grata... and non pro</i>