TFSA withdrawal after moving to US

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nigeno
Posts: 3
Joined: Sun Apr 18, 2021 3:18 am

TFSA withdrawal after moving to US

Post by nigeno »

Have a TFSA account with several thousand of dollars in it.
Funds not invested, no capital gain, except a small savings account rate of return 0.25 to 1%.
The account has been reported in FBAR form yearly.
Would it be considered a taxable event in US if all funds are withdrawn? If so, where should it be reported?

Thank you
nelsona
Posts: 17014
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: TFSA withdrawal after moving to US

Post by nelsona »

The withdrawal itself is not a taxable event, you should have been reporting the interest every year, and that is all that it is generating.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
nigeno
Posts: 3
Joined: Sun Apr 18, 2021 3:18 am

Re: TFSA withdrawal after moving to US

Post by nigeno »

Thank you nelsona!

If the interest earned for 2020 is only $15, is it still required to be reported? There is no threshold below which it is not required to be reported?
If it should be reported, what can I do to make up for the miss?
nelsona
Posts: 17014
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: TFSA withdrawal after moving to US

Post by nelsona »

Where would you get the idea that interst below a ceratin amount need not be reported, that has never been the case in canada or US.

What figure had you imagined?

You submit a 1040X and adjust the income to your return on the taxable interest line.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
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