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For U.S. citizens and other U.S. persons living in Canada, filing a U.S. tax return may be only one part of their annual U.S. tax compliance obligations. If you have Canadian bank accounts or other foreign financial accounts, you may also be required to file an FBAR (FinCEN Form 114) with the U.S. Department of the Treasury. The FBAR for U.S. citizens in Canada is an informational reporting requirement that applies to certain foreign financial accounts. Although an FBAR does

Moving from the United States to Canada can raise an important question: what happens to your 401(k)? For many Americans moving to Canada, a 401(k) may represent one of their largest financial assets. The good news is that moving to Canada does not generally mean that you need to close your 401(k) or immediately pay Canadian tax on the entire account. However, 401(k) and Canadian taxes involve both Canadian domestic tax rules and the Canada–U.S. Income Tax Treaty. Understandi

A Registered Education Savings Plan (RESP) is one of Canada’s most popular ways to save for a child’s post-secondary education. Contributions can attract valuable government grants, and investment income can grow tax-deferred for Canadian tax purposes. However, RESP and U.S. taxes can become more complicated when the subscriber, beneficiary, or both are U.S. citizens or otherwise subject to U.S. taxation. The reason is simple: an RESP receives special tax treatment in Canada,

The Tax-Free Savings Account (TFSA) is one of Canada's most popular savings and investment vehicles. For Canadian tax purposes, its appeal is straightforward: contributions are made with after-tax money, investment income generally grows tax-free, and withdrawals are generally tax-free. For Americans living in Canada, however, TFSA and U.S. taxes can be a much more complicated combination. U.S. citizen or other U.S. taxpayer cannot assume that an account that is “tax-free” in

If you are a U.S. citizen living in Canada, understanding Canadian retirement accounts for U.S. citizens is important because Canadian and U.S. tax rules can treat the same account very differently. If you are a U.S. citizen living in Canada, Canadian registered accounts can create unexpected cross-border tax issues. Understanding the U.S. tax treatment of Canadian retirement accounts for U.S. citizens is especially important because an account that is tax-deferred or tax-fre

The Registered Retirement Savings Plan (RRSP) is one of Canada's most popular retirement savings vehicles. For Canadian residents, the basic concept is straightforward: contributions may provide a Canadian tax deduction, investment income can accumulate on a tax-deferred basis, and withdrawals are generally taxable. But what happens when the RRSP owner has U.S. tax obligations? This is where RRSP and U.S. taxes can become complicated. A Canadian RRSP can be particularly impor

A Registered Retirement Income Fund (RRIF) is one of the most common ways Canadians receive retirement income. But what happens when the RRIF owner has connections to the United States? For a Canadian resident who is also a U.S. citizen, Green Card holder, or otherwise subject to U.S. tax, RRIF and U.S. taxes can become an important cross-border issue. The Canadian and U.S. tax systems do not treat retirement accounts in exactly the same way. A RRIF is a Canadian retirement a

Moving from the United States to Canada does not necessarily mean leaving your U.S. retirement accounts behind. Many Canadians have accumulated retirement savings in the United States before moving to Canada, while others continue to work for U.S. employers or earn income connected to the United States. Common U.S. retirement accounts include: 401(k) plans Traditional IRAs Roth IRAs 403(b) plans other employer-sponsored retirement plans But what happens to these accounts when

If you are a Canadian resident and receive income from the United States, you may wonder: Do I have to report my U.S. income on my Canadian tax return? In most cases, the answer is yes. Understanding Canadian T1 foreign income reporting is especially important if you receive U.S. employment income, investment income, pension income, or other U.S.-source income. This means that income earned or received from the United States may need to be reported on your Canadian T1 income

If you are a U.S. citizen or U.S. resident living and working in Canada, you may be able to reduce your U.S. taxable income by claiming the Foreign Earned Income Exclusion (FEIE) on Form 2555, Foreign Earned Income. For many Americans living abroad, Form 2555 can be an important part of U.S. expat tax planning. However, simply living in Canada does not automatically make you eligible. You must meet specific requirements involving your foreign tax home and either the Physical

If you are a U.S. citizen or other U.S. taxpayer living in Canada, you may find yourself paying income tax to both Canada and the United States. This could raise an important question: If I already paid Canadian income tax, do I have to pay U.S. tax on the same income again? Not necessarily. The U.S. Foreign Tax Credit can provide relief when qualifying foreign income taxes are imposed on income that is also subject to U.S. tax. For many taxpayers, the credit is calculated us

If you are a U.S. citizen living in Canada, moving to Canada does not generally end your U.S. federal income tax filing obligations. The United States generally taxes U.S. citizens on their worldwide income, regardless of where they live. This means that a U.S. citizen living in Canada may need to report Canadian employment income, investment income, pension income, business income, and other foreign-source income on a U.S. federal tax return. This article explains Form 1040