Author Topic: Canadian and US taxes - need help!  (Read 338 times)

tamiko17

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Canadian and US taxes - need help!
« on: March 08, 2017, 12:39:07 AM »
Hi, I'm a Canadian living in Texas, I moved down here about 8 months ago and I'm confused about filing my taxes.
Previously, when I lived in Canada I've had no problem filing my own taxes, but I'm confused about what I need to report and to whom.

I currently have an RRSP with Questrade and no other investment accounts - It's my understanding that I need to report this to the IRA, but I'm unsure how. In my RRSP I have about 7k. I started to file my taxes using E-file online services. I've seen varying advice online about a 1099-DIV or an 8891?

I know that Texas doesn't have state taxes, so I only have to file federal taxes.
I'm also going to file my taxes back in Canada - I only worked until about March and then received EI from April until August.

Does anyone have any advice? Thanks in advance!

NorthernBlitz

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Re: Canadian and US taxes - need help!
« Reply #1 on: March 08, 2017, 07:44:19 AM »
When we moved to the US, we also had to file to both.

I did the Canadian filing with U-File. I think that there is an option to say when you left the country. You stop being a tax-resident right when you leave. So, my understanding is that you don't pay tax to Canada on US income you earned after you left. The trade off is that you only get the pro-rated amount of the personal exemption.

We did our US taxes by hand (Federal and NYS). The State taxes were tricky because the instructions for non-residents were written for people who moved between states and not between countries. We made some mistakes doing this, but the state redid my filing and sent me more money than we asked for. The next year we used HR block software (you can usually pick it up on sale for $20...might be less for you if Texas doesn't have state income tax) and paid someone to do it*. As a regular employee (i.e. paid on a W2), doing taxes in the US is pretty much the same as doing it in Canada.

You need to file an FBAR form if your accounts in Canada are greater than $10k (I think in USD).
https://www.efilefbar.com/?gclid=Cj0KEQiA9P7FBRCtoO33_LGUtPQBEiQAU_tBgK0QC9bdUk2na1j2HalTRz16OLv_-3iVHNOeAN-QJH8aAlxy8P8HAQ

* Edit: We got basically the same number from the professional a friend recommended (~ $150) and HR Block software (~$20). We now use HR Block. As a "normal W2 employee" our returns are pretty simple though (no personal business / rental properties, etc.).
« Last Edit: March 09, 2017, 11:46:30 AM by NorthernBlitz »

Goldielocks

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Re: Canadian and US taxes - need help!
« Reply #2 on: March 09, 2017, 11:11:04 AM »
I recall my rrsp being locked down, so notifying the us about outside assets was not on the tax return.

Rather the other filing the other posted mentioned.

Watch out for AMT, and if you need to declare tax treaty rates on anything. It is easiest if you have help with your first filing, then follow the basics next year.

tamiko17

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Re: Canadian and US taxes - need help!
« Reply #3 on: March 09, 2017, 05:12:16 PM »
Yeah, my Rrsp is locked down, I can't contribute to it while I'm living in the US.

I was trying to do it myself but it guess my best bet is to pay someone to do it so I don't end up
Doing it wrong and owing money....