This forum is excellent. I’ve consulted an American and several Canadian tax specialists but get keep getting different answers, so I hope you can help me clarify my tax situation. My questions are:
1) Do I need to keep filing 1040NR in the US and was filing in the US ever necessary after I moved back to Canada?
2) Is a ROTH IRA now tax-free in Canada and what tax reporting is needed?
3) How long do you have to amend tax returns in Canada and the US?
Just for background, I’m a Canadian citizen who had a J1 visa in the US from 1990-1993 and filed 1040NR (I didn’t file Canadian taxes while I was in the US as I had severed ties to Canada). I had a TN visa from 1994-2000 and filed 1040 in the US. I purchased stock while in the US and have a ROTH IRA. I got a new job in Canada and moved back at the end of 2000 when I still had one month left on my TN visa. I met with my US accountant in 2000 while I was still in the US and was told I didn’t need to file a sailing permit or anything with the IRS before I moved back to Canada, but would need to keep filing a yearly 1040NR until I had sold all my stock I had bought while in the US. I had some carry over income from my original US employer that was paid to me in 2001 and this was put on the 2001 1040NR by my US accountant (and I ended up paying tax to the US) and also included on my Canadian return (which I think was correct) but no credit was given by either country for taxes paid on the US money – I think I was double taxed. After I moved back to Canada I opened a brokerage account, had all my shares transferred and closed my US account. From previous postings I think I did the right thing here as several stocks were winners. The Canadian accountants I contacted last year seem unsure of my US tax situation and how to treat the ROTH IRA. One says I don’t need to keep filing 1040NR, the other says keep filing for 10 years, both say the ROTH is fully taxable in Canada when I withdraw any money. I was as a resident in the US, but I don’t think I was ever classed as a permanent resident (not a US citizen or green card holder) but I’m not sure if I would be classed as a long term resident. Any help/advice you can provide is greatly appreciated.
TN Visa, need to file 1040NR after move back to Canada
Moderator: Mark T Serbinski CA CPA
Once you left US, your stock was no longer taxable in US: the accountant was plain wrong on that. Sale of stock is not taxable in US when residnt of canada, regardless of what broker holds it. There still is no need to file. For Cdn puposes your stock cost is based on wnhe yo returned to canada.
On the extra income you got in 2001, you should have claimed tax credit on your Cdn return. Probably too late to claim now.
Your Roth is now considered tax-free like in US as long as you NEVER contribute to it as a Cdn resident. EVER. Nothing special to report in canada.
Since 2001, the only time you would ever need to file a 1040NR is if you either work in US, or if you cash in your Roth. You are NOT along-term resident under any definition.
On the extra income you got in 2001, you should have claimed tax credit on your Cdn return. Probably too late to claim now.
Your Roth is now considered tax-free like in US as long as you NEVER contribute to it as a Cdn resident. EVER. Nothing special to report in canada.
Since 2001, the only time you would ever need to file a 1040NR is if you either work in US, or if you cash in your Roth. You are NOT along-term resident under any definition.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
ROTH IRA and social security
Thanks for the quick reply to my questions. I'm relieved to know I don't need to file 1040NR anymore. Sounds like I did need to submit a 1040NR in 2001 because I had income from my former US employer even though my TN visa had expired. Unfortunate that I didn't get any tax credit on the Canadian side. Is it really too late to amend my return - how many years do you have to amend a return? Other questions: Was I supposed to notify the IRS that I was leaving the USA? If so, what forms should I have submitted? Regarding ROTH IRA, it's great to know this is also tax-free in Canada. I have no intention of adding anything more to the ROTH (I don't think I can as the only US income I now have is dividends from US stocks I own). When can I start making withdrawals in Canada from the ROTH (how old do I have to be) and do I then need to start submitting 1040NR again or only claim on my Canadian taxes?
You may also be able to help me with this issue. Back in 2001, my US employer refused to give me a W2 and paid me back all the social security and medicare that had been taken off my 2001 pay. The money I earned would have been enough to provide me with the 4 credits I needed to be eligible for social security. Is there any way I can get these 4 credits, even if I have to pay both the employer and employee amounts? Or is this worth pursuing? What is the agreement between Canada and the US regarding getting credits for amounts paid in USA?
Your help is greatly appreciated.
You may also be able to help me with this issue. Back in 2001, my US employer refused to give me a W2 and paid me back all the social security and medicare that had been taken off my 2001 pay. The money I earned would have been enough to provide me with the 4 credits I needed to be eligible for social security. Is there any way I can get these 4 credits, even if I have to pay both the employer and employee amounts? Or is this worth pursuing? What is the agreement between Canada and the US regarding getting credits for amounts paid in USA?
Your help is greatly appreciated.
Filingh 1040NR means you are non-resident. Even the thickest (and that is saying something) IRS flunky can figure out that that means you've left US.
That's about all I'm going to answer for you at this time.
Come back in may.
That's about all I'm going to answer for you at this time.
Come back in may.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best