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Would it be considered a taxable event in US if all funds are withdrawn?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: 18311
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.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. 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: 18311
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.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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