I have been in CA since June 09 on a work permit (which was renewed last year). I am being sponsored by my employer for the provincial nominee program for PR (I have questions related to that but will post in the other forum). At this point I intend to stay in CA indefinitely.
I have been looking for a forum such as this for the past 18 months (thank-you reddit/r/personalfinanceca)! I have many many questions, but will start with the basics.
I have bank accounts in both US & CA (<$10K) and mailing addresses in both. I bought a home in CA in 2010. My term life insurance in the US, disability insurance through CA employer. In the States I have Neuberger Berman Roth IRA, State Public Employees defined benefit plan, TIAA-CREFF, Oppenheimer mutual fund (non-retirement) and Vangaurd IRA & small HSA (<$2500)
In Canada, I have no RRSP or TFSA. I do have a defined benefit plan with my current employer but no idea how much is in it.
My divorce was final 6 months after moving here. I have a 18 YO and a 23 YO. I claimed the 18YO on my CA taxes for 2012, my ex claimed her in the States. She will live and attend university in the States this Fall. My 23 YO is moving in with me to start university here in the Fall. He claimed himself on his US 2012 return with small (<$10000 income).. will have about the same income for 2013.
1- I have filed both US & CA tax returns for all relevant years (using H & R block) but only the F 90-22-1 (hope that's the right #) last year in the States as I have kept my accounts in CA under the $10K total the other 2. It appears after some reading on here, that I should have filed something with CRA notifying them of my accounts in the States? (yes they are over $100K). Can someone verify and provide more input on that please as H & R neglected that little piece of info- and yes I will be going elsewhere in the future.
2- I am contemplating gifting my son the non-IRA mutual funds ~$13,000 so he has the cash for his study visa requirements , Any thoughts on that?
3- I know opening a TSFA does me no good as the US doesn't recognize them...and given I have hesitated to invest in RRSP's have quite a large carry-over for my RRSP's contribution amounts. I have hesitated to invest there as my US retirement accounts and the 2 defined benefit plans I have should be close to sufficient for my retirement needs. I have made no contributions to any of my US retirement account since moving to CA. Suggestions as to what to do in regards to my retirement accounts and future investing in RRSP's?
4- I am in a field that is high demand for online work as an freelancer/contractor on both sides of the border. I have contemplated setting up 2 companies, 1 in each country to accommodate that income from both countries as well as write off expenses of a home office, but am indecisive and very unsure how to be tax-smart about it. Insights & suggestions welcome.
5- With my son moving in with me on a CA study visa, does he have the tuition credit as in international student that he can transfer to me for my taxes?
6- And then can I claim him on my US return s a dependent for 2012 & subsequent years until he is done with university? Or will he have to file his own US & CA tax return while he is in CA studying? He may have a small income from work-study in CA, but that is not guaranteed.
I think I will stop with the questions for now and see the responses.
Many thanks in advance!
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USC CA work permit many questions
Moderator: Mark T Serbinski CA CPA
further infomration:
I still have my drivers license and vehicle registered & iinsured at the address in the states where I lived (my parents) prior to moving to CA in 09. Now that my job is permanent and I am getting started on the PR process I will import my car and transfer insurance & license to the provincel (much more$$$).
For the past 3.5 years I return to the states for custody time with my now 18YO daughter about 10 days a month during the school year. well over the 30 days maximum required for foreign income exemption on US taxes.
In total I am in the States approximately 100 days a year. That will change starting this fall and I will be closely watching my time back and forth trying to keep under the 30 day rule for 2014.
I still have my drivers license and vehicle registered & iinsured at the address in the states where I lived (my parents) prior to moving to CA in 09. Now that my job is permanent and I am getting started on the PR process I will import my car and transfer insurance & license to the provincel (much more$$$).
For the past 3.5 years I return to the states for custody time with my now 18YO daughter about 10 days a month during the school year. well over the 30 days maximum required for foreign income exemption on US taxes.
In total I am in the States approximately 100 days a year. That will change starting this fall and I will be closely watching my time back and forth trying to keep under the 30 day rule for 2014.