Are you an accidental American? The IRS might think you are…
As we all know, tax season is just around the corner.
While there are many U.S. citizens living here in Windsor, there are many who don’t know that they are exposed to the U.S. for taxes because they aren’t aware that they are considered by the IRS to be “U.S. Persons”. We all know that U.S. citizens and U.S. residents are U.S. persons. The rules have changed about who is considered a U.S. resident, as well as a U.S. citizen, especially when it comes to taxation. By the way, if you have been granted a green card but have not surrendered it, you are a U.S. person, whether or not you’re working there, and are thus liable for taxation in the U.S.
This question is of particular importance to that hardy Canadian breed…….the Snowbirds. If you stay too long in the U.S., you are considered to be a U.S. resident and therefore exposed to U.S. taxation. The Snowbirds who own property in the U.S. are most certainly facing taxation in the U.S.
This question concerns U.S. citizens living in Canada who have investments in Canada. Some of them are considered by the U.S. to be taxable in the U.S. Do you know which ones are and which ones aren’t? The U.S. government recognizes some Canadian investments such as RRSP and RRIF as being tax sheltered. They do NOT recognize TFSA, RESP or RDSP as being tax sheltered.
Does your tax preparer know about your U.S. status? Are they aware of what to do if you need to file a U.S. return? Does your tax preparer know what to look for in your investments to determine if any tax needs to be paid to the U.S?
Do you want to know more?
Mary Arif
(519) 996-9884
Labels
American, financial, financial advisor, income tax, investment, Mary Arif, taxes, U.S.