QUESTION: I am a Canadian citizen working in US on H1B visa for last three and half years. Before coming to US I have some investment in RRSPs and also have a bank accounts in Canada For last three years I am paying taxes in US. First year I filed papers in both countries and paid additional tax in Canada My question is do I have to file any tax papers in Canada for my earnings in US or for the RRSP investment in Canada? Or do I have to declare anything on my US tax filings? Thanks --------------------------------------------------------------------------- david ingram replies: If you are living full time in the US with no immediate family (wife and children) in Canada, you do not need to file a Canadian return. All of your account holders should Know that you are living in the US. If any interest or dividends are paid to you by a financial institution, the institution should deduct withholding tax and remit it to Canada. No Withholding is required for RRSP profits BUT, You have to report the internal earnings to the IRS on US form 8891 and the existence of ALL your Canadian accounts to the Department of the Treasury on form TDF 90-22.1 find 8891 here - http://www.irs.gov/pub/irs-pdf/f8891.pdf penalty for not filing is 35% of the amount in the plan plus 5% per year for every year you fail to report it. find T D F 90-22.1 here - http://www.irs.gov/pub/irs-pdf/f9022-1.pdf penalty for failing to file a TDF 90-22.1 for each foreign account is up to $500,000 plus 5 years in jail. I actually had a 105 year old client who was sent a $10,000 fine for not reporting $38,000 in the Royal Bank of Canada in Edgemont Village in North Vancouver. ============================== David Ingram's US / Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists My Home office is at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 10 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. 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