TFSA and RRSP Impact

[arcticether]

Hi folks, I am trying to figure out how to incorporate my TFSA and RRSP into my tax filings this year. I am on an H1B so resident alien in USA, NY. It seems that if it is less than $50k total, there's no tax impact and you just need to fillout and file a FBAR? Thank you

[nelsona]

Not sure what you mean.
RRSPs are not taxable in US until you withdraw.
TFSAa ARE taxable like any other unsheltered account, so any income generated is reportable in US as dividends interest and cap gains. If you have mutual funds in your TFSA you are also subject to PFIC reporting.

You may be confused with the 0% tax rate for qualified dividends (most Cdn dividends are NOT qualified0 and LONG-term cap gains, if you are in the 15% tax bracket. You still must report all that income.

[arcticether]

Thank you, where would I report TFSA distributions (dividends?)? since my broker Questrade didn't prepare a tax form this year?

[nelsona]

You need to list them on scedule B. Your software will do it. Convert each to USD of course.

[arcticether]

Thank you! So the only thing I would need for a TFSA (worth 10k) is report the dividends on Schedule B as (same as any 1099-DIV). Do I also need to fill out a 3520 or anything else for it (I am on h1b in US, canadian citizen, US resident alien).

[arcticether]

Sorry I just realized it my TFSA is under $10k USD, does this mean I don't need to report for FBAR or anything else?

[nelsona]

its the TOTAL of all accounts that determines FBAR, and then you include all accounts, even if they have $1.

If you traded investments, you also have long and short tem gains on schedule D.

As to 3520, I will leave that for you to decide.

[arcticether]

Thank you! I didn't realize RRSP needed to be added to fbar. Does the fact that I held ETFs (Xeqt, psa) require me to do anything additional?

[nelsona]

Yes, unless these are exclusively in your RRSP. You will need to follow PFIC rules.