Dual Citizenship

[NinoniAndBoosBoos 6]

Hi

So how is everyone dealing with the tax implications of the US taxing our foreign investments i.e. keeping our RRSP here? anyone found a simple solution? Do you have to renounce your Canadian citizenship once you marry? Can you still get a SSN and greencard without becoming a bona-fide US citenzen?

So many questions appreciate any feedback from those VJ'ers who have made the journey.

[Darnell 8,478]

not need to be a citizen of usa to get green card and ssn. But must love poutine. Much.

[Flames9_RN 358]

form 8891--to report ur RRSP'S--IRS wont tax them--just have to report them. I have been told--can't confirm this, but a few States may tax them, but dont know that for sure.

I don't think many renounce their Cdn citizenship! Its actually more than just renouncing it: http://www.cic.gc.ca/english/citizenship/renounce-how.asp

Having a "greencard" does not make you a USA citizen----your a permanent resident; Which of course you can get a SSN

Canada and the USA have a tax treaty--so 1 should NOT get double taxed!

For the most part its rather simple-----Canada sees you as a Cdn citizen AND a USA citizen! Thus dual citizenship!! BUT the USA sees you ONLY as a USA citizen!

So simply, when you as a k1 marry, NO, you do not have to renounce your Cdn citizenship!! As I say to others--take time and read the guides here on VJ! No 1 cares more about your travels through this process than you. Good luck

[NinoniAndBoosBoos 6]

not need to be a citizen of usa to get green card and ssn. But must love poutine. Much.

too funny...poutine is good..

[Darnell 8,478]

yes yes, I agree - Poutine is the shiznit.

Dual Taxation across 2 countries, however, is not.

[Brother Hesekiel 2,235]

You are light years away from being even able to apply for naturalization as a US citizen. Without being a US citizen, you cannot renounce your Canadian citizenship as renouncing your Canadian citizenship before being having another one would prevent you from being deported to your home country as you wouldn't have a home country anymore.

But even if you have another citizenship than you Canadian one, you would be in a very small circle of people if you would renounce your Canadian citizenship. Almost all of them had their entire brain removed when doing that, as there is no logical reason to do that. Even if your annual income is in the 8 figures, meaning you make over $10,000,000 per year, you would still need a certain degree of mental retardation in order to renounce your Canadian citizenship.

[NinoniAndBoosBoos 6]

yes yes, I agree - Poutine is the shiznit.

Dual Taxation across 2 countries, however, is not.

And now this: http://www.globeinvestor.com/servlet/ArticleNews/story/GAM/20110614/RBTAXAMERICANSMCKENNAATL/ money grabs all around..sickening

[Krikit 1,163]

Holy smokes. That's pretty crazy.

[warlord 72]

As Flames said, most people don't need to renounce their Canadian citizenship. Those that do are based on high end security clearances for certain government jobs, where you cannot be any other citizen but and American. Of course most of us will never be in a position to have a job like that so for most purposes, it's something that isn't done too often. Even if you have no ties or cares to Canada and never plan on living there or even visiting there again, there's still no reason. You don't have to renew your passport, you don't have to file taxes there, you don't have to do voluntary military service etc. So there's not reason other then the job issue that one would ever actually need to renounce it.

With taxes and the article, I'm wondering if I can make more money hiding my Canadian money in a shoebox under my bed? Figure if you get taxed on that stuff now, I'd actually save more hiding it in some smelly shoes...

[NinoniAndBoosBoos 6]

As Flames said, most people don't need to renounce their Canadian citizenship. Those that do are based on high end security clearances for certain government jobs, where you cannot be any other citizen but and American. Of course most of us will never be in a position to have a job like that so for most purposes, it's something that isn't done too often. Even if you have no ties or cares to Canada and never plan on living there or even visiting there again, there's still no reason. You don't have to renew your passport, you don't have to file taxes there, you don't have to do voluntary military service etc. So there's not reason other then the job issue that one would ever actually need to renounce it.

With taxes and the article, I'm wondering if I can make more money hiding my Canadian money in a shoebox under my bed? Figure if you get taxed on that stuff now, I'd actually save more hiding it in some smelly shoes...

the smelly-shoes hounds would come a runnin' too....tough one...I am in the middle of working out my RRSP situation: i looks more favourable keeping it here, but that would require two income tax forms one for CRA and one for IRS...gets a lot more complicated with tax implications as RRSP's are deemed as foreign investments in the US, and the US is the only country that taxes as such...very confusing indeed. I suggest if you opt for the stinky shoe approach create a diverson!!!! you know keep the dogs of the trail with a stinky shoes full of fido treats....cheers

[Brother Hesekiel 2,235]

As Flames said, most people don't need to renounce their Canadian citizenship. Those that do are based on high end security clearances for certain government jobs, where you cannot be any other citizen but and American.

Good point,

yet if the Governator of California could do his job as an Austrian citizen, or, more to this point, Canadian Stéphane Dion could govern as a French national, one would have to apply directly as a CIA assassin to work in Canada in order to get into this situation. By the way, Canada's former prime minister John Turner, who was born in England, was also a dual citizen during his time in office as the highest official of Canada.

[Flames9_RN 358]

I dont believe you have to file Cdn taxes every year just because you have RRSP's! When u leave you call up the company that is looking after them, you tell then ur a non-resident of Canada, they send you a form to fill out and sign and that's it--for the Cdn side of things!! But each year for the IRS, you fill out form 8891, which is a very basic form to fill out. I stupidly cashed out my RRSP's and put it into a Roth IRA, oh well,lol Back when the Cdn $$$$ was low!! Wife was ticked at me,lol But I was bored, oh well.

[OBX 51]

You can leave your RSP untouched in Canada and no need to file Canadian taxes There are restrictions on what you can do with any funds in the account as a non-resident but no tax implications if they remain in the plan. On the US side, as Flames posted, you need to report them annually via form 8891 but again not taxed if all funds remain in the plan.

[NinoniAndBoosBoos 6]

Just Bob, interestesting, than again Canada has lost a lot of backbone, so seems anyone can run for office here in Canada.

If you are a Canadian (boo hoo Vancouver Canucks) with RRSP's who takes up residence of the state of California and you have elected to take the deferral of the RRSP income at the Federal level, you will pay state tax annually on the RRSP "phantom" income - Still getting a lot of advice on this, but it is looking more and more favourable to keep it here, than collapse the RRSP, I am sure it might not be too easy to find a trust-worthy fianancial advisor once I am there, at least find one who even knows what an RRSP is.

Flames, thanks I will contact my investor and ask about this form to avoid having to file taxes with CRA while I still hold my RRSP's.

[Kathryn41 3,205]

I chose to cash out my RRSPs before I moved to the US. I paid the taxes on them (since I was moving part way through the year and had no US income for the rest of the year, my world income for the whole year was from Canada so I could claim a full year's deduction on half a year's wages plus my RRSPs). I decided to do this as when I had investigated knowing I would be moving to the US, I realized I needed to file a federal and a state return for the RRSPs and the phantom income would be taxed even though I had not yet received it by the state of Georgia. It didn't count as deferred income in the US so I decided to cash it out in Canada, and like Flames, invest it in an IRA here in the US. I do still have a Canadian bank account open but there is less than $1000 in it and basically the maintenance fee eats up the pennies in interest that it earns each year so it will be interesting to see how the IRS treats that.

As a dual citizen I know I will have to file a return with the IRS for the rest of my life regardless of where I live, however the US has tax treaty agreements with Canada and many other countries which should negate paying taxes to more than one country on the same income. It is a nuisance doing the paperwork, but that should be the only real hassle.

You definitely don't want to or need to denounce your Canadian citizenship when you become a US citizen. The US does not officially recognize dual citizenship but since they have no control over another country's right to grant citizenship and therefore can't take it away, they just 'don't recognize it'. To the US you are only a US citizen. Canada, however, does recognize dual - and triple, etc, - citizenships so recognizes you as both a Canadian and an American, The benefits outweigh the liabilities.