Resources for Dual Citizens - What do I need to know?

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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Resources for Dual Citizens - What do I need to know?

Post by dual_nomad » Sat Aug 12, 2017 9:28 am

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

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Post by nelsona » Sat Aug 12, 2017 9:31 am

Much has been written here on these subjects, please read over some posts.
Nelsona Non grata. Non pro. Search previous posts.

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Post by mikie » Mon Aug 14, 2017 7:11 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.

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