I am living and working in the US since Feb 2012 .
I still own my home in Ontario ( no one living there, I do come to Canada for a couple days once every three or four months) .
I also have bank accounts. credit cards and RRSP accounts in Canada.
Last month , I went to Canada and did my Canadian taxes for 2012 . Taxes were done as a Canadian resident with foreign income and T5s from 2012. My US address was put on the return.
I have filed my US return for 2012, I have mentioned "yes" to foreign bank accounts. I have also mailed the F90221 form . I have mentioned checking, savings and rrsp accounts with > 10K in that.
Now the questions.
1. The F90221 form was received by the treasury department three weeks ago. Do I get a receipt or something like a notice of assessment from that department ?
2. Was filing 90221 necessary ? HR Block said no need to say "yes" to foreign bank accounts as long as its under 50K . They also said as long as I am not a US citizen or permanent resident, FBAR reporting not needed.
3. Do I have any tax liabilities in the US for the reported accounts ? The RRSP dividends are reinvested .
4. I have some rrsp contribution room from previous years. Am I allowed to contribute when living in the US ? Will I run afoul of any CRA or IRS rules ?
5. I have not yet contributed to my TFSA, I have the full 25500 space and would like to use up full in the next couple months. Any CRA or IRS rules that say otherwise ?
6. I have heard that "US persons" should not start a TFSA. From my understanding a "US person" is a US citizen or PR card holder. I am neither. Am I correct with this assumption ?
Thanks in advance.
Canadian on TN status in US. FBAR and TD F90221 question.
Moderator: Mark T Serbinski CA CPA
HRBlockheads were completely wrong. You are a US tax resident, so must abide by all foreign reporting requirements.
And your Cdn taxes are also incoreect, you are a departing resiswnt since feb 2012.
forget tfsa, and forget rrsp contributions. Close any tfsa now. Correct your cdn tax filing.
any particular reason you would fiel and THEN ask questions?
And your Cdn taxes are also incoreect, you are a departing resiswnt since feb 2012.
forget tfsa, and forget rrsp contributions. Close any tfsa now. Correct your cdn tax filing.
any particular reason you would fiel and THEN ask questions?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
I have not followed what HR block USA said with regards to FBAR. I have already sent in completed form.
Do you know if I get a receipt from that department confirming everything is up to date ?
My Canadian taxes for 2012 were filed through an HR block in Toronto. First time ever I m using them. I was always using the software and doing it myself all these years.
I was in TO for one day in Feb and thought HR block would be easier, even though its a lot more expensive than the online tool.
HR block canada asked me if my home in TO was rented out. I said no . I was told that since the home was being kept empty for my use and I have multiple bank accounts in canada, I will have to file as a resident with foreign income.
What has to be done to correct my 2012 taxes ? My CRA "myaccount" says 2012 return "received". Its been like that for the last 2 plus weeks or so. I guess its flagged and hence not being assessed.
Do I have to go to Canada to fix it ? I was planning to make my next trip in first week of June.
Also, will there be any penalties for incorrect reporting ?
RRSP and TSFA - I have an RRSP account for some time.
I was planning to open a TFSA for the first time . I will put that on hold as per your reply. May I know why I am not allowed to use the TFSA ?
Thanks
Do you know if I get a receipt from that department confirming everything is up to date ?
My Canadian taxes for 2012 were filed through an HR block in Toronto. First time ever I m using them. I was always using the software and doing it myself all these years.
I was in TO for one day in Feb and thought HR block would be easier, even though its a lot more expensive than the online tool.
HR block canada asked me if my home in TO was rented out. I said no . I was told that since the home was being kept empty for my use and I have multiple bank accounts in canada, I will have to file as a resident with foreign income.
What has to be done to correct my 2012 taxes ? My CRA "myaccount" says 2012 return "received". Its been like that for the last 2 plus weeks or so. I guess its flagged and hence not being assessed.
Do I have to go to Canada to fix it ? I was planning to make my next trip in first week of June.
Also, will there be any penalties for incorrect reporting ?
RRSP and TSFA - I have an RRSP account for some time.
I was planning to open a TFSA for the first time . I will put that on hold as per your reply. May I know why I am not allowed to use the TFSA ?
Thanks
IRS/state/treasury do not send anything once you file. Hard for Cdns to get used to this.
HRBlock is wrong on your residncy. You are a US tax residnt, therefore you are a departed resident (a deemed non-resident).
There is nothing majocal about the bordr. You can do your Cdn taxes in Borneo (where thankfully HRBlockheads don't work).
Read the emigrants guide on CRA website, if you did your own taxes before you could surely have done a better job your self, simply by using ufile. Wait for your assessment, and then amend. But look over the guide for your deemed disposition requirements, and return any GST you recieved since feb 2012.
You are not allolwed to contrinute as a non-resident to TFSA, and your TFSA is not sheltered in US, AND there is a boatload of extra filing you need to do in US.
Your RRSP requires form 8891 to be filed with IRS, or there are penalties.
HRBlock is wrong on your residncy. You are a US tax residnt, therefore you are a departed resident (a deemed non-resident).
There is nothing majocal about the bordr. You can do your Cdn taxes in Borneo (where thankfully HRBlockheads don't work).
Read the emigrants guide on CRA website, if you did your own taxes before you could surely have done a better job your self, simply by using ufile. Wait for your assessment, and then amend. But look over the guide for your deemed disposition requirements, and return any GST you recieved since feb 2012.
You are not allolwed to contrinute as a non-resident to TFSA, and your TFSA is not sheltered in US, AND there is a boatload of extra filing you need to do in US.
Your RRSP requires form 8891 to be filed with IRS, or there are penalties.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
I have already done my US taxes for 2012 and gotten a refund.
8891 has to be filed along with that , how do I do that now ?
Also, the deemed disposition , is it like FMV minus the original buying price , 50 % of that is taxable income ? If so, do I have to report in both US and Canada ?
Its my principal residence , I don't own any other property in Canada or US.
Also, what happens when I return to Canada ? I will be coming back and taking up employment in Canada starting March 2014.
8891 has to be filed along with that , how do I do that now ?
Also, the deemed disposition , is it like FMV minus the original buying price , 50 % of that is taxable income ? If so, do I have to report in both US and Canada ?
Its my principal residence , I don't own any other property in Canada or US.
Also, what happens when I return to Canada ? I will be coming back and taking up employment in Canada starting March 2014.
You will need to amend your 1040. As it stands, you have filed a false repot, since you did not report your RRSP earnings. And you have failed to file 8891.
So, amend and attach form 8891, making the eleection to defr taxation.
Your own property in Canada. But you LIVE in US. Your Cdn property is a cottage at this point.
Deemed disposition is not recognized in US, so nothing to report until you sell/swap investments (that's all outside your RRSP). Your broker and RRSP MUST be informed that you are living in US.
When you go back, you are a "returning resiwnt", and you can "unwind" your demmed disposition if you wish, but otherwise, the 2 year period when you owned the stock becomes tax-free.
So, amend and attach form 8891, making the eleection to defr taxation.
Your own property in Canada. But you LIVE in US. Your Cdn property is a cottage at this point.
Deemed disposition is not recognized in US, so nothing to report until you sell/swap investments (that's all outside your RRSP). Your broker and RRSP MUST be informed that you are living in US.
When you go back, you are a "returning resiwnt", and you can "unwind" your demmed disposition if you wish, but otherwise, the 2 year period when you owned the stock becomes tax-free.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
I will file the amendment to the 1040.
You do mention "election to defer tax" .
Does this mean that , 35 or so years down the line, when I pull money out of my RRSP , I will owe taxes to the IRS , even if I stop employment in the US in the next year or two .
I guess I will have to make a trip to Canada to get the info to fill up the 8891 form. Lines 7 to 10 require a whole lot of info which I don't have with me now.
You do mention "election to defer tax" .
Does this mean that , 35 or so years down the line, when I pull money out of my RRSP , I will owe taxes to the IRS , even if I stop employment in the US in the next year or two .
I guess I will have to make a trip to Canada to get the info to fill up the 8891 form. Lines 7 to 10 require a whole lot of info which I don't have with me now.
No, you will not owe IRS tax if you are not a US taxpayer at thatatime.
8891 is pretty simple, and you should be able to find the information on-line.
You stop at line 8, which is your year-end value. Surely you can get this info online. Your broker is mailing your statements to your US address anywys (right?).
and line 7 is 0.
8891 is pretty simple, and you should be able to find the information on-line.
You stop at line 8, which is your year-end value. Surely you can get this info online. Your broker is mailing your statements to your US address anywys (right?).
and line 7 is 0.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Yes, I have the required info for the 8891 in my online banking account.
I will inform them that I m living in the US.
Now that my 2012 Canadian return was filed incorrectly by HR block, you have advised me to wait for the assessment and then do the correction.
Is the deadline for the T1161 form April 30th as well ? IF my assessment is delayed, I will get hit with 25$ per day fine for every day after 4/30.
I will inform them that I m living in the US.
Now that my 2012 Canadian return was filed incorrectly by HR block, you have advised me to wait for the assessment and then do the correction.
Is the deadline for the T1161 form April 30th as well ? IF my assessment is delayed, I will get hit with 25$ per day fine for every day after 4/30.
No, I have not taken anything out from my RRSP. I will enter zero.
I just called up the IRS helpline. They asked me to file a 1040X along with the 8891 .
So, my 16a and 16b in 1040X will also be zero .
Numbers in my old 1040 don't change. Can I just send a copy of the old 1040 and the completed 8891 ?
HR block in US says they have never heard of 8891 and it cannot be filed online.
I will either mail it in or drop off at an IRS office.
I just called up the IRS helpline. They asked me to file a 1040X along with the 8891 .
So, my 16a and 16b in 1040X will also be zero .
Numbers in my old 1040 don't change. Can I just send a copy of the old 1040 and the completed 8891 ?
HR block in US says they have never heard of 8891 and it cannot be filed online.
I will either mail it in or drop off at an IRS office.
Calling IRS telephlunkie is almost as bad as calling HRBlockheads.
Follow the instructions on 1040-X. Nothing will change on your 1040 (although I would make sure that I've answered YES to all the questions at bottom of Schedule B, if not send amended one. Why would you send a copy of your old 1040? Fisrt off, the instructions don't tell you to do that (they proabaly tell you specifically NOT to send your old 1040), and second, I'm quite sure the IRS already HAS your 1040, they don't need another one.
8891 can be e-filed as part of your original 1040, using most software packages (except probably HRBLockhead), but it cannot be e-filed later (nor can 1040-X).
Follow the instructions on 1040-X. Nothing will change on your 1040 (although I would make sure that I've answered YES to all the questions at bottom of Schedule B, if not send amended one. Why would you send a copy of your old 1040? Fisrt off, the instructions don't tell you to do that (they proabaly tell you specifically NOT to send your old 1040), and second, I'm quite sure the IRS already HAS your 1040, they don't need another one.
8891 can be e-filed as part of your original 1040, using most software packages (except probably HRBLockhead), but it cannot be e-filed later (nor can 1040-X).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing