Hello everyone,
I am a dual citizen of Canada and the US. I currently have resident status in Canada and I get paid in CAD from a Canadian corporation. I have a Canadian bank account with CAD40,000 sitting in cash. I also have a bank account in the US with a few thousand USD in it. I have no investments on either side.
For the first time in my life, I'm 25, I'm making a 'bigger' salary at $90,000 CAD/year. I want to start investing it, but the confusing whirlwind of double taxation, filing two tax reports, etc is a bit much to handle.
I guess I am looking for 1) Financial advice and 2) Tax advice. What do I need to know as a dual citizen, and is there any way to turn this hinderance into an investment advantage?
For example I have heard that I cannot have a TFSA in Canada as a US citizen. Is this true?
I have also heard that I cannot have a ROTH IRA in the states if I am a resident of a canada? A lot of financial advice I have read says that maxing out your ROTH is a smart thing to do as a young person making money. However, it seems like I will eventually be taxed by Canada if I do this? It really seems like I cannot take advantage of sound investment strategies on either side of the border if i am dual citizen...
If you guys don't know as much about my rather specific questions, do you think you could point me in the direction of some books/resources for overwhelmed dual citizens with little financial/tax experience?
Thanks for the help.
Dual Nomad
Resources for Dual Citizens - What do I need to know?
Moderator: Mark T Serbinski CA CPA
-
- Posts: 1
- Joined: Sat Aug 12, 2017 9:17 am
There are a couple of books on Canada - US tax issues. These also deal a little with financial planning. Do a Google. You might also consider hiring a financial planner that specifically deals with Canada - US investments and taxes. Although TFSAs are legal for dual national Canadian residents, most people recommend not having them, because of complicated IRS rules.