5 month in Canada

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SergeP
Posts: 72
Joined: Mon Mar 09, 2009 10:38 pm
Location: hawaii

5 month in Canada

Post by SergeP »

If I live 7 months in US as a GC holder and 5 months in Canada (I am a citizen), I am obviously a US tax resident and file taxes in US. Do I also need to file taxes in Canada. My only income in Canada is relatively small OAS and CPP. Thank you.
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nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: 5 month in Canada

Post by nelsona »

As long as your ties in US overwhelm your CDn ties (even if you have a home in canada) you remain a US resident.

Remember that, as a US resident, your OAS/CPP are not subject tp Cdn taxation, but are in the US (at the 85% inclusion rate).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
SergeP
Posts: 72
Joined: Mon Mar 09, 2009 10:38 pm
Location: hawaii

Re: 5 month in Canada

Post by SergeP »

Currently there is automatic 10% tax withholding from my CPP payments. I am also planning to do some withdrawals from my RRSP account which will be subjected for automatic tax withholding. Can I just claim a FTC for this amounts on my 1040 without filing tax returns to Canada?
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nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
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Re: 5 month in Canada

Post by nelsona »

IRS is not obliged to give you credit for taxes you should not pay. CPP and OAS is not taxable in Canada for US residents,

And there is no automatic tax on CPP. You requested it.

You must change your address with service Canada (and your RRSP of course). RRSP taxes will be 25%. If not you will need to fix.
Sounds like you've been playing both sides of the fence.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
SergeP
Posts: 72
Joined: Mon Mar 09, 2009 10:38 pm
Location: hawaii

Re: 5 month in Canada

Post by SergeP »

Actually I am not playing both sides. I plan to move to US from Canada next year and become a US tax resident. After this, I want to spend summer months in Canada (about 4-5 months per year). I am trying to understand how to file my future tax returns in this situation. Of course, for simplicity I would prefer to file tax returns to US only (my main income is from US). Thank you for your answers.
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nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: 5 month in Canada

Post by nelsona »

You asked if you can claim the withholding tax on CPP/OAS. on your US return. That implied (to me) you are living in US but paying taxes on CPP in canada. That would not be correct.

WHEN you move (info that was not given) then you will cease the withholding (which was elected by you, not automatic), and report the income only in US, where you WILL BE living.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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