QUESTION: I am planning on relocating to USA in the near future. I will not
work in USA but I do have retirement income from Canada, that I would use to
live on in the USA. I only plan to live not work in USA, are their going to
be any tax concerns for me.
I realize I have to file a Canadian tax return can I be taxed again in USA
on this income.
Regards
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david ingram replies:
You can NOT just retire to the USA. You can spend up to 6 months a
year there as a visitor IF you have a home ready for you at a moment's
notice in Canada. That means you can NOT rent your home ouot to a stuent
or visiting professor while you go south. It has to be ready for you to
go home to if you get turned back at the border.
In addition, to keep your provincial or territorial medical plan alive,
you have to be in your home province or territory for more than 183 days
a year with the exception of Ontario which only requires you to be there
more than 153 days for some reason or the other.
Under the substantial Presence test, if you are in the USA more than 120
days a year three years in a row or 140 days a year two in a row, you
will need to file a 1040NR US tax return and claim a closer connection
to Canada on form 8840.
Read the April 1994 newsletter in the top left hand box at www.centa.com
for more information. The numbers are a little out of date but the
concept is exact.
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> Disclaimer: This question has been answered without detailed information
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> disclaimer must be included." expert US Canada Canadian American Mexican
> Income Tax help.
> David Ingram gives expert income tax & immigration help to non-resident
> Americans & Canadians from New York to California to Mexico family,
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> Phone consultations are $400 for 15 minutes to 50 minutes (professional
> hour). Please note that GST is added if product remains in Canada or is to
> be returned to Canada or a phone consultation is in Canada. expert US
> Canada Canadian American Mexican Income Tax help.
> This is not intended to be definitive but in general I am quoting $800 to
> $2,800 for a dual country tax return.
>
> $800 would be one T4 slip one W2 slip one or two interest slips and you
> lived in one country only - no self employment or rentals or capital
> gains - you did not move into or out of the country in this year.
>
> $1,000 would be the same with one rental
>
> $1,200 would be the same with one business no rental
>
> $1,200 would be the minimum with a move in or out of the country. These
> are complicated because of the back and forth foreign tax credits. - The
> IRS says a foreign tax credit takes 1 hour and 53 minutes.
>
> $1,500 would be the minimum with a rental or two in the country you do not
> live in or a rental and a business and foreign tax credits no move in or
> out
>
> $1,600 would be for two people with income from two countries
>
> $2,800 would be all of the above and you moved in and out of the country.
>
> This is just a guideline for US / Canadian returns
>
> We will still prepare Canadian only (lives in Canada, no US connection
> period) with two or three slips and no capital gains, etc. for $150.00 up.
>
> With a Rental for $350
>
> A Business for $350 - Rental and business likely $450
> And an American only (lives in the US with no Canadian income or filing
> period) with about the same things in the same range with a little bit
> more if there is a state return.
>
> Moving in or out of the country or part year earnings in the US will
> ALWAYS be $800 and up.
>
> TDF 90-22.1 forms are $50 for the first and $25.00 each after that when
> part of a tax return.
>
> 8891 forms are generally $50.00 to $100.00 each.
>
> 18 RRSPs would be $900.00 - (maybe amalgamate a couple)
>
> Capital gains *sales) are likely $50.00 for the first and $20.00 each
> after that.
>
> Just a guideline not etched in stone.
>
> This from "ask an income trusts tax and immigration expert" from
> www.centa.com or www.jurock.com or www.featureweb.com. David Ingram deals
> on a daily basis with expatriate tax returns with multi jurisdictional
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