I am currently living in California with a full time job on a TN visa. I moved to California in May 2014, but am continuing to finish my Masters degree in Canada part time (and having it paid for by my supervisor).
I know that I will need to file taxes for both countries, and have a few questions:
1) I have kept my bank/drivers license and some furniture in Canada, does that mean I am resident of Canada for tax purposes (I have credits from school still that I would like to use)?
2) As a resident of Canada, am I still able to use my TFSA account as tax free, and contribute to it - when i mentioned to someone at Questrade that I was living in the US, they said I could not contribute this year?
3) I am currently <30, and unsure if I will be staying in the USA long term, where does it make the most sense to be putting my money (401k, TSFA, RRSP)
4) It seems common for my Canadian friends in California to not pay Canadian taxes who work down here and plan to return to Canada to not pay Canadian taxes - will they need to pay these in the future (if they return?)?
Any help with these questions would be greatly appreciated - I'm having a hard time finding definitive answers about taxes on RRSP, 401k and TFSA in my situation.
Canada and USA taxes while earning money in both countries
Moderator: Mark T Serbinski CA CPA
You are en emigrant from Canada for tax purposes, from may forward.
Please read the emigrant tax guide from CRA for filing instructions.
Your US income will never be taxable in Canada while you are a non-resident.
You need to close your TFSA (its taxable in US) and should not be funding anything more into RRSP.
You should be funding either your 401(K) or better yet a Roth401(k).
Please read the emigrant tax guide from CRA for filing instructions.
Your US income will never be taxable in Canada while you are a non-resident.
You need to close your TFSA (its taxable in US) and should not be funding anything more into RRSP.
You should be funding either your 401(K) or better yet a Roth401(k).
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
Thanks,
Will close my TSFA immediately.
As for the 401(k) both roth and non roth. if I were to leave the USA and go back to Canada in 10 years, would that money stay in the 401(k) until I am 59.5? Or is it an easy transfer to an RRSP.
Additionally, why do you favour the Roth (and it that you favour it in general, or it is better for someone planning on returning to Canada?)
Will close my TSFA immediately.
As for the 401(k) both roth and non roth. if I were to leave the USA and go back to Canada in 10 years, would that money stay in the 401(k) until I am 59.5? Or is it an easy transfer to an RRSP.
Additionally, why do you favour the Roth (and it that you favour it in general, or it is better for someone planning on returning to Canada?)
It should be left intact.
Roths are now completely protected under the treaty. The idea behind roth is that you give up tax deduction now, in favour or tax-free growth and withdrawls later.
For soemone wishing to return to canada where taxation will ALWAYS be higher than your current rate, then years of tax-free growth as well as tax-free withdrawals makes most sense.
Roths are now completely protected under the treaty. The idea behind roth is that you give up tax deduction now, in favour or tax-free growth and withdrawls later.
For soemone wishing to return to canada where taxation will ALWAYS be higher than your current rate, then years of tax-free growth as well as tax-free withdrawals makes most sense.
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