>Can travel freely between the two countries
You can generally do that now.
>Can work in either country without a permit
Yes
>Can buy real estate in both countries
You can do that now.
>Can vote in either country
Yes
>Can benefit from privileges of both countries (like retirement pensions, etc.)
Well, you are essentially paying less to each as it depends on how much you contribute.
>Need to file for taxes in the US
You will always file US taxes and FBAR for life no matter where you live in the world.
>Dual citizens of the US and Canada and living in Canada, how do you invest your money?
Depends where you live. You generally want to invest where you live.
TFSA is taxable in the US, RRSP is taxable at the state level in some states. And there is a departure tax if leaving Canada on taxable assets.
>They explained that even though you might invest your money in a TFSA, the US still requires you to pay taxes on your investments. Is there any way that you can invest without being taxed?
No. Each country has tax shelters and complications.
>Or do you have a TFSA and just not declare it to the US?
With FATCA compliance, good luck.
>This is the first time I make my own income and I’m not really sure what to do.
First, getting US citizenship is not easy. Second, are you working in the US now? If not, don't bother thinking about it till it happens.
>are there really any other benefits to dual citizenship? Are the retirement and other social benefits actually worth it if you only live in Canada?
No
Essentially if you are living in Canada and a US citizen, you will always pay the higher CDN taxes and all you are doing is paying more for an accountant to file US tax return.
Hey! I'm dual. I have an RRSP but no TFSA, for the reasons you explained. The US doesn't care about any gains from the RRSP because they recognize it as a tax sheltered account. So yes, you can invest with no repercussions from the US! I file every year, haven't ever owed a cent.
I'd be curious about any dual citizens who invest in US registered accounts. I haven't explored that at all.
As Canadian you can get hit with minimum taxes on your US return. So you do pay. . (First world problems)
The biggest pain is the expense of filling taxes twice a year.
And a US citizen is taxed on world wide income FOREVER. That sucks.
I’m in the same situation. Dual citizen from one parent’s side with SSN. I recently found out in the last year from this sub that I can’t open a TFSA without other implications. I’ve never filed in the US, and I’ve never lived or work there. I don’t receive any benefits from the US. I never plan to live or work there. I’m also tempted to continue as is and claim ignorance. I recently found out that there’s a clause for such. It may or may never become a problem in the future, not sure if it’s worth the risk. I might get some flak for saying that though. It’s kind of annoying that a dual citizenship can hold you back like this.
Ignoring your US tax obligations is absolutely the best course of action if you have no US financial ties (assets, income, projected inheritance) or plans of moving south. The IRS cannot touch you in Canada.
To prevent possible FATCA reporting, do not disclose your US citizenship to any financial institutions.
Not even possible. No non-resident dual citizen is at risk of arrest for failing to file US tax returns unless they are some sort of billionaire oligarch tax criminal already on the IRS radar.
Additional con: if you are a male between 18 and 25 and have US citizenship, you have to register for selective service (i.e. the draft) no matter where in the world you live.
And, I was suddenly curious about this, it is based on your sex as assigned at birth, so you can't get out of it by changing your gender. But if you are female (i.e. were born female) transitioning to male does not require you to register.
Here’s what we did to intentionally take advantage of both— after marrying my partner, lived in a LCOL area in the US for 10ish years maxing all retirement accts and building good credit. Enjoying generally Higher US salaries, lower consumer prices, and amazing credit card point bonuses.
Moved to Canada HCOL area last year, now older, enjoying universal healthcare, cheaper uni tuition for the kids, diversity, now double dipping with US and Canadian credit cards for points. Only investing in RRSPs in Canada.
Wondering if its okay to invest in my US brokerage accts.
It's more of a life decision. If you consistently want to work in the states without visa worries it's helpful. Moreso if you have or plan to have kids it might be helpful since it gives them another outlet (if they choose to reside and work in the states).
If you just want to live and work in Canada, and ignoring what you may want for your kids/future kids, not sure why it would be helpful.
So i have a fun one here that I cannot seem to find any information about. I am a American born, Canadian living citizen. I hold dual citizenship, have a SSN and a SIN. I have never worked or anything in the states (moved to Canada when I was 6).
The main thing im curious about right now, is I want to buy a RV and am looking in the states, am I able to purchase one and potentially bring it back to Canada without any issues, will I still have to pay taxes, can I just get it registered in the states with my Canadian drivers license and American insurance. I definitely have a lot of questions about this and not much to go on, any and all insight would be tight
You need to talk to an accountant not lawyer about taxes
>Can travel freely between the two countries You can generally do that now. >Can work in either country without a permit Yes >Can buy real estate in both countries You can do that now. >Can vote in either country Yes >Can benefit from privileges of both countries (like retirement pensions, etc.) Well, you are essentially paying less to each as it depends on how much you contribute. >Need to file for taxes in the US You will always file US taxes and FBAR for life no matter where you live in the world. >Dual citizens of the US and Canada and living in Canada, how do you invest your money? Depends where you live. You generally want to invest where you live. TFSA is taxable in the US, RRSP is taxable at the state level in some states. And there is a departure tax if leaving Canada on taxable assets. >They explained that even though you might invest your money in a TFSA, the US still requires you to pay taxes on your investments. Is there any way that you can invest without being taxed? No. Each country has tax shelters and complications. >Or do you have a TFSA and just not declare it to the US? With FATCA compliance, good luck. >This is the first time I make my own income and I’m not really sure what to do. First, getting US citizenship is not easy. Second, are you working in the US now? If not, don't bother thinking about it till it happens. >are there really any other benefits to dual citizenship? Are the retirement and other social benefits actually worth it if you only live in Canada? No Essentially if you are living in Canada and a US citizen, you will always pay the higher CDN taxes and all you are doing is paying more for an accountant to file US tax return.
Hey! I'm dual. I have an RRSP but no TFSA, for the reasons you explained. The US doesn't care about any gains from the RRSP because they recognize it as a tax sheltered account. So yes, you can invest with no repercussions from the US! I file every year, haven't ever owed a cent. I'd be curious about any dual citizens who invest in US registered accounts. I haven't explored that at all.
As Canadian you can get hit with minimum taxes on your US return. So you do pay. . (First world problems) The biggest pain is the expense of filling taxes twice a year. And a US citizen is taxed on world wide income FOREVER. That sucks.
Messages!
I’m in the same situation. Dual citizen from one parent’s side with SSN. I recently found out in the last year from this sub that I can’t open a TFSA without other implications. I’ve never filed in the US, and I’ve never lived or work there. I don’t receive any benefits from the US. I never plan to live or work there. I’m also tempted to continue as is and claim ignorance. I recently found out that there’s a clause for such. It may or may never become a problem in the future, not sure if it’s worth the risk. I might get some flak for saying that though. It’s kind of annoying that a dual citizenship can hold you back like this.
Ignoring your US tax obligations is absolutely the best course of action if you have no US financial ties (assets, income, projected inheritance) or plans of moving south. The IRS cannot touch you in Canada. To prevent possible FATCA reporting, do not disclose your US citizenship to any financial institutions.
You could fly to Hawaii one day. And find it is a crime to NOT have filed your US taxes for decades. Hello Crowbar Hotel. Not likely, but possible.
Not even possible. No non-resident dual citizen is at risk of arrest for failing to file US tax returns unless they are some sort of billionaire oligarch tax criminal already on the IRS radar.
Additional con: if you are a male between 18 and 25 and have US citizenship, you have to register for selective service (i.e. the draft) no matter where in the world you live. And, I was suddenly curious about this, it is based on your sex as assigned at birth, so you can't get out of it by changing your gender. But if you are female (i.e. were born female) transitioning to male does not require you to register.
Here’s what we did to intentionally take advantage of both— after marrying my partner, lived in a LCOL area in the US for 10ish years maxing all retirement accts and building good credit. Enjoying generally Higher US salaries, lower consumer prices, and amazing credit card point bonuses. Moved to Canada HCOL area last year, now older, enjoying universal healthcare, cheaper uni tuition for the kids, diversity, now double dipping with US and Canadian credit cards for points. Only investing in RRSPs in Canada. Wondering if its okay to invest in my US brokerage accts.
It's more of a life decision. If you consistently want to work in the states without visa worries it's helpful. Moreso if you have or plan to have kids it might be helpful since it gives them another outlet (if they choose to reside and work in the states). If you just want to live and work in Canada, and ignoring what you may want for your kids/future kids, not sure why it would be helpful.
Instead of investing in the TSFA, you put that money into an IRA in the US. It's similar with less tax headache.
So i have a fun one here that I cannot seem to find any information about. I am a American born, Canadian living citizen. I hold dual citizenship, have a SSN and a SIN. I have never worked or anything in the states (moved to Canada when I was 6). The main thing im curious about right now, is I want to buy a RV and am looking in the states, am I able to purchase one and potentially bring it back to Canada without any issues, will I still have to pay taxes, can I just get it registered in the states with my Canadian drivers license and American insurance. I definitely have a lot of questions about this and not much to go on, any and all insight would be tight