Question About Duel Citizenship/Taxes

M

MarjorieC

New Member
New to posting here but have been reading this site for years, i will soon be eligible to apply for Us Citizenship i'm a natural born Canadian Citizen married to a natural born US Citizen and we live in the US.
Will i be able to retain my Canadian Citizenship and will there be problems with my having RRSP"S in Canada ? I would like to know before applying.
Thank you. MarjC
 
TheRealCanadian and TripleCitizen are in better position to answer and their login handle may already serve a good answer to yoru dual citizenship question. Otherwise such handles may face trouble if Canada also have false citizenship claim law.

About taxes, I believe USA and Canada have tax treaty including social securoty tax treaty). In fact, I heard
USA is the only country that tax overseas its. citizens's overseas income.

You can pay SS taxes in one country and receive social security benefits in the other one.
 
I think you have to decide on your residency -country. I do not believe USC changes your tax case much as i assume you are US LPR now..

You can stay in US as resident and pay US taxes, and maintain Canadian non-resident Tax status, certain rules apply: http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/lvng-eng.html

OR you can choose to stay in Canada, then you have to pay both Canadian and US Taxes (certain exemption will apply on foreign earned income and plus you can claim foreign tax credit)
http://www.irs.gov/pub/irs-pdf/p54.pdf

The worst scenario is to become tax resident on both sides of border...

I do not believe your USC or Canadian Citizenship will be at risk in any scenario....It is matter of taxes.
 
US tax law treat citizens and non-citizen PRs same. So it will not make any difference to IRS whether the OP is
naturalized or not.
 
WBH said:
US tax law treat citizens and non-citizen PRs same. So it will not make any difference to IRS whether the OP is naturalized or not.
Click to expand...

Yup.

The OP will retain Canadian citizenship, and can defer taxation on RRSPs by filing an election under the tax treaty with her return. She should have done this when she became a PR or US tax resident, whichever came first.
 
WBH said:
In fact, I heard USA is the only country that tax overseas its. citizens's overseas income.
Click to expand...
Many countries tax their citizens' worldwide income. What is unusual about the US is that they tax worldwide income even if the citizen is not living in the US. Other countries that tax worldwide income normally only do so if the person is living in the country of citizenship.
 
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